Investment Q&A

Q: Dear 5i
Which of the above listed stocks would you place in an RRSP and which in a TFSA and in what order of preference ?
Thanks
Bill C

Q: Hi,
What would be your top 5 CDN consumer discretionary stocks in a RRSP for a 5-10 year hold.
Please list in order of preference for a buy today.
Thanks

Q: a book i would really recommend that has helped me a lot in last few years and written by a canadian is called "your retirement income blueprint" by daryl diamond and he has a new one called "retirement for the record"
both are very good but i would start with the income blueprint.

Q: Hi 5i
You recently answered this question from Steve:

Recently a couple of younger friends (mid-60's)have just converted their RRSPs to RRIFs. Except for the possibility of needing the cash flow, I can't understand why they would want to convert to a RRIF.

Am I missing something? Are there advantages to converting early?
~~~~~~~~~~~~~~~~~~~~~~
Another reason his friends may be doing this is long term tax planning. Quick example, a couple in their mid 60s each has 500k in RSPs. If they were to both die suddenly that $1 million all gets reported as income on one return and most of it is taxed at over 40% (in BC the amount over $241k is 53.50%). To avoid this, the couple would need to live long lives and gradually draw the money out. But because none of us know when our time is up, they could take some out now in the 20% or 28.2% tax brackets (BC rates). The winners will be the kids and grandkids, the loser will be CRA. So by taking money out before 71, they are increasing the years when they can take money out at less than 30%, and reducing the potential giant tax bill at the end. And if they have not fully funded their TFSAs, they can use this money to top them up. Then going forward their interest, divs and cap gains aren't taxed. In the RSP or RIF, they will be taxed on all 3 when they take it out.
Greg

Q: This question was asked by Atchuta on November 20, 2023.
"My wife took early retirement with DB plan. Her RRSP and TFSA are well diversified. She has enough money to invest in about 10 companies. This money is not needed in foreseeable future. However, a small dividend is appreciated along with capital appreciation. It will be invested in a regular account.
Can you please suggest top 12 companies."

What would be your answer if it was an RRSP account instead of a regular account, would you change anything ?

Thank you
Fernando

Q: Hello 5i, Could you comment on options available for a retired senior that is approaching 71 years of age as I think that 71 is the mandatory age that RSP,s have to be cashed out.

Q: Hi 5i,
I understand each investor has their own idea of risk but I would be interested in getting your thoughts. In regards to small caps stocks I believe I choose quality at an attractive price with a plan to hold forever (of course they don't always work out and I may eventually sell them). I struggle with whether to buy them in my TFSA and/or NonReg account. TFSA is great if the stock appreciates dramatically and the NonReg is great if I pick a loser and I sell it for a capital loss. Can you perhaps provide some words of wisdom how one can approach this dilemma. Thanks

Q: I hold this and as such I guess I have shares of the spun out new private company. It is held in an RRSP. Are there any issues with this?

Q: I am selling some of my stocks from an RRSP. Based on your advice to avoid trimming the flowers to feed the weeds, I am thinking I should sell the ones that are down. TVE is down 23%, ENB 17%, and SHOP 19%. Which would be the priority to sell or is there a better approach in this situation? They will be sold as cash is needed each month so it will just be a reduction in my position. Adding info to my question earlier. I am generally following the Balanced Portfolio, except I have substituted TVE for Suncor but in a much smaller position.

Q: I am doing a portfolio clean up in my wife's RRSP. The following companies are all down. Please provide comments on add, keep, or sell and your suggested order in these actions.
Largo (LGO)
Palantir (PLTR)
Questor (QST)
Relic (RHT)
Sangoma (STC)

Thank you Gordo

Q: hi,
Is the "dividend" paid from ZRE actually treated as "interest" for tax purposes? and therefore, this would be best held in an RRSP? and more generally, in your opinion, which accounts are best for holding CDN vs US dividend stocks, CDN and US growth stocks (ie lots of capital gains ), and fixed income/interest?
cheers and thanks, chris

Q: Hi Peter,

Can you provide a general list of some broad investment themes that one should consider in managing a RRIF. Any additional references would also be appreciated.

Thanks

Q: Hi 5i,
I am turning 72 and moving from an RRSP to a RIF and think this portfolio should be more orientated towards income.

In that light I wonder if you could suggest some replacement stocks for the non dividend paying TMUS and DIS on the US side of my RIF? Thanks as usual for you help.
David

Q: Hi I after reading Jason Heath's article in the March/April issue of Canadian Money Saver I became very confused about US withholding Taxes on US companies held in my RRSP.

Mr Heath stated:
"That said, in some cases, U.S. and foreign dividends can be subject to tax annually in an RRSP.
U.S. dividends paid to a Canadian resident’s RRSP can be tax-free if there is an up-to-date Form W8-BEN Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting on file with the brokerage. However, this tax exemption only applies to U.S. stocks owned directly or U.S.-listed ETFs that own U.S. stocks."

For many years I have held a lot of US dividend paying stocks in my self directed RRSP in US dollars. I was always under the impression that there is no US withholding tax on these dividends in a self directed RRSP and that the W8-BEN form was not required .

I know these are Mr Heath's comments and not your own, but can you please clarify.

Q: Confused about collecting US companies dividends in my RRSP

Q: Would DOO be a good addition to an rrsp? Can you recommend 2-3 high conviction adds to an rrsp? Thanks

Q: If a person had a modest amount to invest in their new RSP, say ~$8K, and a long time horizon, what would you suggest? Medium risk with DRIP if possible.

Q: I was reading Steve's question RE: combining the RRSP and Spousal RRSP. Depending on the situation, there could be a downside because of the spousal attribution rule. This will depend on when the last contribution was made to *any* spousal RRSP and when the withdrawals will start.

Q: Retired, dividend-income investor. My wife has her own RRSP as well as a Spousal RRSP. We are both 68 year old and approaching the time where we shift our RRSPs into RRIFs.

I am considering the option of combining my wife's two RRSPs into one, to simplify things. What are the pros and cons of doing this? Is it a no-brainer just to do it?

Thanks...Steve

Q: Hi There,
I just wanted to confirm that if you transfer a security from a cash account to a RRSP account, any accrued capital gain on the transferred securities on an in-kind contribution to an RRSP is immediately taxable to you, while any loss on such a transfer would be denied from being claimed as a capital loss.....is this correct!

If so, if you sold the security in the cash account and then transferred the cash to the RRSP, would you then be able to claim the capital loss?
Thank You,