Investment Q&A

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

Q: Hi,
I have a spousal RRSP and a Non-spousal RRSP account. The spousal account has not received contributions for over 10 years and will not be used in the future. I was thinking to combine the spousal RRSP and the non-spousal RRSP accounts. After the combination of the two accounts, the account would be a 'spousal RRSP'. Would there be any tax implications or any other reason I need to take into consideration prior to combining my two accounts? thanks,

Q: I have a bunch of shares in a computer share account. If I transfer those shares into another broker, would there be any tax consequences? Any idea how the average buy price should be calculated if I transfered some but not all the shares? If no tax consequences, Would taxes only be generated if transferring to an rrsp or tfsa broker account?

Thanks for the great service.

Q: Can you confirm the reason for holding US stocks in registered accounts? When you say Registered accounts are you including TFSA's? Thanks

Q: Good morning,

All four of our family TFSAs and RESP are invested in a mix of Mawer equity and balanced funds.

I'm reading a number of very favourable articles on the benefits of holding a one etf solution for a well diversified portfolio and was wondering if I should consider:
a. keeping the Mawer funds in our TFSAs and RESP but purchasing either VBAL or CBD.A for new TFSA and RESP contributions;
b. Sell all of our MAWER funds and buy either VBAL, CBD.A and perehaps some VGRO for the RESP given that our grandchildren are only 7 years old.

Your thoughts and adjustment suggestion to our TFSA and RESP holdings would be appreciated. Thank you.

Franco

Q: Hello 5i,
Further to Ken's comment about transferring "In Kind" from an RRSP to TFSA: my wife and I have just completed this process for the second year in a row. We select holdings that we have had to buy in our RRSP's even though they should have gone into a TFSA in the first place - think SIS and VET for example.
The process involves the transfer of the shares first into a margin (non-registered trading) account and then into the TFSA. The Fair Market Value may or may not reflect the current stock quote.
There is definitely withholding tax which is on a sliding scale depending upon the size of the transfer. (We both had a wee bit of extra room, so our withdrawal - contribution was larger than the $6,000.) Also, the withholding tax will be required to be paid as cash, so it is important to have enough cash available in the RRSP account to cover it. If there is not enough cash in your Canadian RRSP side, you will have to either sell something or transfer cash from your U.S. side if you cash available there. It is something that needs to be accounted for in the decision to proceed.
We feel that taking the tax hit now (both retired and under 70) will benefit us in the long run (however long that might be....). We had a long time of benefiting from RRSP's and now it is time to further enhance the TFSA side and reduce the impending limitations that will come with age.
Hope this is of some help to Ken and perhaps others.
All the best for a New Year to all!!
Cheers,
Mike

Q: I am mid 60's retired for 10 years and living off our diminishing nest egg. We each about $20k of room in our TFSA's and my question is. Should we transfer $40k out of an RRSP into our TFSA's at this time. We will need the funds to live on over the next year so given we will have to pay the tax anyway and markets are low at this time when a recovery takes place we may save the tax on any capital gains. sage advice please.
Bob

Q: Kind people of 5i - the other day someone wrote in a question "I can move stocks in kind from my rrsp to my tfsa..." Startled I was. Is this correct and can one not yet using or not yet maximizing their tfsa simply transfer shares in kind from their rrsp to either a new or an existing but not maxed out tfsa and thereafter use the resulting monies withdrawn from their tfsa without tax. Or am I misunderstanding something such as the transfer from the rrsp to tfsa would still have a 30% holdback and the need to declare the share value at date of transfer as income in the year of transfer. A clear understanding of this issue is what I'm seeking with thanks.

Q: Regarding Bob's question on moving stocks in kind from an RRSP to a TFSA , there would be a tax implication when the stocks come out of the RRSP would there not?

Q: I am down to 30K in my RSP and no TFSA, looking to have 6 total positions. Thinking SPB, TCL, AQN & DIV. I know Diversified is higher risk but I feel comfortable with that company at today's levels. Would you be okay with those 4 and what 2 would be best to add for Dividend with some growth but overall safety. Should I add a specific bank like BNS or would ZWB be better for me right now?
Same question for AQN, would I be better removing single stock exposure and going with ZWU?
Charge as many q's as necessary.
Thanks!

Q: Good morning
My wife and are both under age 65. Each have an RRSP and my wife has a spousal as well.
She has the higher income.
Should we withdraw from the Spousal RRSP can I claim it on my Taxes as I have the lower income?
Thank you
Mike

Q: I am trying to weigh the after tax consequences of withdrawing my entire RSP this year with a RIF alternative of withdrawing funds over say the next 15 yrs. I collect both CPP and OAS. Can you point me in the right direction as to how or where I could have the various scenarios "modeled"?
Thanks,
Terry

Q: Dear 5i
I know this question may not be in your area of expertise but I'm sure you have a good idea of the answer .
I have an RRSP , my wife has an RRSP , and my wife has a spousal RRSP .
She has an income (employment ) as do i so you might argue that both of us have contributed to her spousal RRSP .
The question is , at the time of retirement when we are drawing income , who claims the income coming out of the spousal RRSP .
Knowing the answer to this determines at least to some degree what investments are in what account . The aim of course is for each of us to draw out the same income so as to be tax efficient .
Appreciate your input .
Thanks once again .
Bill C

Q: Could I have your top 3-5 Canadian stock recommendations (any sector, growth focus although dividend would be nice) for a RESP? Present value is $30k with about 50% in US/EAFE ETFs, and 10% in XIC. The rest is in Canadian banks, utilities, telecoms. No withdrawals needed for 12 yrs.

Q: I have an RRSP account that I have had for years with only mutual funds in it. It doesn't have very much growth and I'd like to do something else with the money, but don't want to pay it a lot of attention, but rather let it sit in the background and grow for the next 15-20 years. It represents about 25% of my total holdings. All my other accounts are fairly balanced, mostly with your recommendations, but I realize I have no REITS at all. I'm wondering about rolling this one into a group of solid dividend producing REITS. Are you able to mention 5 or so that would be diverse and relatively safe for this kind of hold? If you find 20% too large of a position for REITS please suggest some other larger stable co's that I could buy and forget. Thanks. Kim

Q: We have $60,000 D.un in a RRSP which is about 3% of our total portfolio.
We would like to sell (yes?) and replace with two better income equities for the RRSP.
68 years old.
What do you recommend?