Investment Q&A

Q: I am retired and looking to increase my fixed income assets with ZAG. For tax efficiency is it best to hold it in a RRSP or TFSA account? Any comment?

Q: My wife sold three longtime holdings in her RSP to free up some cash for future promising purchases. The next day she purchased the same stocks from her cash balance in her TFSA. Are there any particular implications to doing this that she should be aware of, other than usual portfolio diversity and weightings.

Q: I am 71 yrs of age and must put my rrsp into riff this calendar year am I still able to make a contribution to my rrsp for the tax deduction
Thks
M

Q: Hi 5i Group,
Does the CRA allow a person to hold a US dollar account within a RRSP or RRIF ?
Thanks,
Ken

Q: Hi,
Can you break down simply how you decide what types of stocks/holdings you recommend hold in which account (tfsa, rrsp, non registered). I am early 30s with a long term outlook on that majority of my holdings, all drips are used (including proxy's where needed) and all contribution space is filled each year in all registered accounts.

Thanks

Q: Hello 5i,

We are looking for advice on stocks that should be held in a US account rather than a CDN account. Our RBC RRSP has both CDN and US funds available. After reading several questions and answers it is clear that we are very confused about this topic. We are hoping questions below can help us grasp a general rule of thumb on which currency should we purchase and hold stocks for our RRSP's.
e.g.
1. should stocks that pay dividends in US funds be held in the US account or CDN account if they can be purchased in either currency? i.e. AQN, BAM
2. if we buy a stock such as Google (no dividend) to hold for a long time should this be purchased with US funds or CDN funds. Is this a stock that should be in a TFSA instead of an RRSP?
3. if we buy and sell lows and highs on stocks without dividends such as AMZN, and BABA, (2-3 transactions per year) should this be purchased on the US or CDN side of our RRSP.
4. if we are to purchase an ETF that pays a dividend in US funds should this be purchased and held in US funds?

Thank you for your help.
Debbie and Jerry

Q: Good afternoon 5i Team,
Looking for the advice on building up the portfolio.
I currently have CAD RRSP and USD RRSP accounts worth $10200 and $8500 respectively.
I hold 4.3% of OSS shares and 11.4% of TRZ shares in CAD RRSP currently.
My question is whether I should still hold 2 accounts in both currencies or consolidate them in CAD going forward?
Also, what would you recommend to invest in? Risk - moderate.
Thank you and happy Friday

Q: My question is about keeping a defined benefit pension with a former employer or transferring to a LIRA to invest in index funds/market etf's. I keep hearing that the plan is great (PSPP Gov plan) and that I should leave the money in there because you are paid for life at retirement. But I'm trying to wrap my head around why it is considered so good. From my point of view I see my 75K sitting in this plan year after year not growing. Supposedly it accounts for inflation (not sure if only when I start claiming or now that i've left plan), but they say around 1.5% adjustment. I still have minimum 20 working years left. In my mind it seems like a no brainer, I transfer to a LIRA invest is 3 market index funds predominantly US, then CDN, and a little International. If I achieve a 6% return I have 240K after 20 years vs 75K. Yes there will be ups and downs but over 20 years I should do pretty well. Am I missing something? Why would someone stick with the pension that doesn't grow or barely grows, just for safety at the cost of much bigger returns?

Q: I have a self-directed RSP trading account in my name and will soon be converting it to a RIFF. My wife is the younger (63yrs) so I would like to use the lower required withdrawal rate as the schedule dictates for her age. To do this would this mean that we would need the RSP/RIFF in both our names - or could I leave it in just my name?
THX
Ralph.....

Q: This may be somewhat of a naive question but I'm new to this :) What options exist, if any, to contribute to the TFSA and/or RRSP of a spouse? What are the tax implications? Do they also apply to common law partners?

Feel free to disregard this question if it is too complex to answer. Thanks.

Q: I cashed out my segregated funds for RESP from an investment firm because I recently understood how high their MER was.

I now have CA$70,000 in hand. I know that I will need half those funds starting 5 years from now from 1 child and then 7 years from now for the second child.

Should I put everything in a GIC paying 3.1% or put all in your Income Portfolio or invest 50% in each?

Thanks

Q: Hello Team,
I have some money on the sideline and I want to gradually put it into action.
Considering that the market is statistically overdue for a good drop (or at least flatline for a while), what would be your best 4 picks for a RRSP and your best 4 picks for TFSA. I would target a 50/50 income/growth mix in both cases.

Thank you!

Michel

Q: If the upcoming federal budget changes the capital gains inclusion rate, would the new inclusion rate apply retroactively to realizations made before the budget announcement in the current tax year? Thank you.

Q: I am slowly building up my TFSA each year by withdrawing funds from my RRSP.I am 68 and often make 1-3 trades per month,sometimes not trading for months.
In 2017 I had a return of 41%,then lost 17% in 2018.My balance today is about $72,000.Do you think the CRA would treat me as a trader and tax me accordingly.

Q: A person diligently saves and invests, and is now in retirement. He has a diversified portfolio. He has maxed out TFSA contributions every year. He has a few hundred thousand in an RRSP, which holds good solid US dividend paying stocks. He also has a few hundred thousand in a non-registered account containing a diversified mix of good Canadian dividend paying stocks. He doesn't have a company pension. He does receive CPP and OAS.

He decides to open a RRIF account early (before age 71) and begin taking at least the minimum annual RRIF withdrawals. He wants to take the withdrawals as "in kind" transfers. (He may sell some stocks to raise the cash to pay the withholding tax, if necessary.) He doesn't need the withdrawal amounts as cash to live on so he wants to keep the withdrawal amounts invested in the stock market, hence the in-kind transfers.

The question is: what to do with the terrific US companies in the RRSP that will be converted to a RRIF, and will slowly need to be withdrawn? To transfer the US stocks in-kind to the non-registered account, means that the US dividend income will now be classified as ordinary income, which will be taxed at a higher rate, and there will be a US withholding tax of 15% on the US dividend income. Is one of the options to keep only low or no dividend paying growth stocks in the non-registered account?

It doesn’t seem to entirely make sense to sell the US stocks and start buying more Canadian stocks. If this were done, eventually the portfolio would become too concentrated in Canadian stocks.

What is the best and most tax efficient strategy for this senior?

Q: I am over 71 age so CRA allows to contribute to spousal rrsp for me,my bank TD is telling me that they will give me a loan to contribute but it has to go into spousal RRSP
account not my spouse rrsp which is her contribution I agree with that ( no choice) but I MUST buy TD mutual funds and can not buy stocks I like,can this be correct need advice many of our members might have similar situation

Q: Could you name three or four stocks for a 25-year-old starting an RRSP today? Thanks!

Q: Hi, if I bought and held U.S. preferred shares in an RRSP would there be any US taxes payable including U.S. withholding taxes. Would it be best to hold these in my U.S. $ RRSP account.

Q: Could you give an update on Onesoft Solutions please.

Q: Have $4000 to add to my RRSP - currently have BCE, T, TD, BNS, AQN, ENB, SIS, PFE - can you recommend a 3-5 companies I can take a look at ?
thanks