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Investment Q&A

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Q: Good Morning: I am thinking of increasing my position in ZWH and have been reading your responses to past questions on this etf. You note that approx. 50% of the dividend is in US dollars and therefore is susceptible to the US govt. withholding tax (in a non-registered account which is where I would be buying it). However, I assume that this amount would be recovered at tax time since that is the normal process for withholding tax on US dividends. I want to buy this fund with Cdn. dollars because the Cdn. dolar is up recently and it seems to be like buying US equities at a reduced rate. Am I correct in both these regards?
In the same vein, do most brokers automatically exchange the dividend payouts into Canadian dollars (no doubt charging their clients an exchange fee) and is this negotiable with your broker? Many thanks for your help.
Read Answer Asked by Donald on August 16, 2017
Q: Hello
Need some advice please. 62 and recently retired. RRSP's are almost maxed out but only a few k in TFSA account.
As my income is now at its lowest point (CPP),I'm
thinking I should start moving some RRSP funds to my TFSA?
I'm considering a mix of ETF's such as VAB,VCN,XAW or perhaps some of your Income stocks and funds such as CPD,XHY,BCE and BNS.
Note that I do hold most stocks in the balanced portfolio.
Thanks for your great service.
Gary
Read Answer Asked by Gary on August 08, 2017
Q: I own XTC, which is currently down 15% in my portfolio. I'm considering locking in a capital loss for tax purposes, then purchasing MG, which has shown a much better trend and better earnings results. Do you think locking in a loss in XTC (possibly to re-purchase after 30 days), and purchasing MG would be a reasonable move at this time?
Read Answer Asked by Alan on August 08, 2017
Q: Good morning, If I sell ZWH, VGG and VIG in taxable accounts and replace with ZWA and VGH (both hedged and in Cdn dollars), will this trigger the disallowed tax loss? i.e. are they too similar to replace within 30 days? If so what would be a better solution? What would be your suggestion for US representation at this time?
Thanks for your never ending help.
Ted
Read Answer Asked by Ted on August 02, 2017
Q: Hi 5i,

I'm thinking on adding ZWH 5%-10% to my RRSP to cover my US exposure. This is for a income portfolio.
My portfolio now consist of 50% GIC's and
5% in each of the following stock.. BNS,EMA,ECI,ENB,SRU.UN,BCE.
10% in CDV.
Can you suggest another ETF that would fit better then ZWH? Or would you consider ZWU a better position. I see 5i income portfolio doesn't have any US equity holdings.
Would the US dividend be tax excempt within the ETF?

I look foreward to your answers.
Thank for all the excellent info!!
Read Answer Asked by Stephen on August 01, 2017
Q: Comment: If it's not "fair" to pay taxes when you withdraw from an RRIF, it's not fair to avoid the taxes in the first place. The trouble we all have in calculating our net worth is we forget about the taxes! The tax deferral just doesn't work as well for those of us with high incomes in retirement. I expect there arr many who think that's a good problem to have!
Read Answer Asked by M.S. on July 24, 2017
Q: Have a family member that needs to supplement her monthly income. She received $60,000 recently.Should she use a investment brokerage account buy dividend payers, collect monthly income she derives from that and pay the occurred taxes, or since she does not have a TSFA open one and then (can she) withdraw the monthly dividend from the tsfa tax free on an on going basis. There is investment knowledge in the family to assist her. Thanks you for all your help
Read Answer Asked by James on July 24, 2017
Q: Being 73, I saved most of my life to an RRSP which flipped to a RRIF @71, with mandatory withdrawals. In the process of doing estate planning, and with the RIFF, being taxed @50% of withdrawals which is a difficult pill to follow. Initially I was withdrawing cash, however after further consideration, this year I transferred loss position "Crescent Point".
1. Would it be best to try and tsf everything before you expire and pay the tax.
2. When you tsf, is it best to tsf your losers initially, and then the winners.
3. I assume there is no other means of elevating the tax on RIFF.

For sure, RRSP are great during your working years, but never considered the tax burden after retirement. As an example if you have a 1 million RRSP after taxes $500,000.00 Does not seem fair
Look forward to your rely and thanks for your service
Rick
Read Answer Asked by Rick on July 24, 2017
Q: Hi,
Further to your reply: "ENB pays its dividend in Canadian dollars. You could buy it in the US, in a US account, and dividends would be converted, but you would incur exchange fees.
Rather than looking at this strategy, we might instead holding some US exposure in general, for general diversification, and avoid trying to predict currency movements"

Since I'm seeking USD income, I'm looking for the biggest bang for my buck (so the Dividend Tax Credit is something I would want to take advantage of). Would my strategy work with something like a ENB.PR.U (USD preferred)? Or does the same currency conversion issue occur. Thanks again.
Read Answer Asked by Carlo on July 18, 2017
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