Investment Q&A

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,

Q: Where to hold Bonds? As I am winding down my income producing years and shifting to drawing down my savings I am wondering where I should hold bonds. We currently hold no fixed income as we will get a pension from my wife's work when she retires( so historically considered that out fixed income). Bonds haven't really been on my radar with rates so low the past 10+ years but things are changing both in terms or yield and my investment needs. I have 4 options to stash some bonds TFSA, RSP, unregistered and within my Inc. I more or less have things in the right place currently with growth in TFSA, US in RRSP and CAD in unregistered accounts. My plan was to sell some USD large caps once the steam runs out of the current rally and buys some high grade corporate bonds, in or around 10-15% of my portfolio. A bit of the old traders strategy of sell in may and walk away...

So to circle back, the easiest place to do it would be in my RRSP, but some of the reading I have done has suggested I do it in my TFSA as I can get the yield out of the TFSA tax free account at any time instead of locking it in the more restricted RRSP accounts. Shifting the TFSA from growth to income also seems like an appropriate move at this stage nearing retirement ( me semi-retired, my wife in 4 years or less). The 3rd option I am considering is doing it in my INC and using the yield to " pay the bills" so to speak of keeping the Inc cash flow positive as my earning drop with me working less.

Q: Is there a way to avoid the foreign withholding tax on US dividends?

Q: I am a 56 yo retiree with no intention of going back to work. All my income comes from my investments. I generally pull out each year the cash the investments generate without needing to sell any shares as that is more than sufficient for my lifestyle. Is there any benefit to converting my RRSP (or part of it) to a RRIF at my age? Other than no withholding tax - which I don’t really view as a benefit since the tax has to be paid anyways - is there any reason to convert prior to being required to do so? Thanks in advance.

Q: Hi 5i. Merry Christmas to all !

I need some help with the mechanics of an 'in-kind transfer'. Particularly with one from a RRSP to a TFSA.

If I use the 2023 TFSA contribution limit of $6500 and want to move that amount of Stock 'A' from a RRSP to a TFSA, then I understand that withholding tax would apply to that amount.

Where does the withholding tax get paid from? I am assuming a number of Stock 'A' shares would be sold to cover the amount of tax owed. Is that correct?

Furthermore, is it possible to have the withholding tax paid from cash within the RRSP or would the tax owed be added to the transfer of $6500 0f Stock 'A' to the TFSA?

Essentially, can I move $6500 of Stock 'A' to the TFSA and pay the withholding tax from cash in the RRSP, as if they were two separate transactions.

Thanks in advance.

Martin

Q: Hi Peter and team, would appreciate your thoughts on what the TFSA should be used for and why, fixed income or capital gains. Thank you