Investment Q&A

Q: Hi Peter and Team

What Canadian listed ETF would you recommend today for US market exposure for the TFSA of a thirty year old with a long term time horizon? Would your answer be any different if it was for an RRSP where the 15% US withholding tax was not an issue? There seem to be hedged and nonhedged versions of all of them so would you recommend a hedged version now with the USD so strong?

Thank you!

Q: I am nearing retirement. Most of my savings is in a non registered account (75% non registered and 25% RRSP). Can you suggest tax efficient ways of managing the fixed income portion of the non registered component? I understand ZBD and BXF are tax efficient. Would you recommend these or do you have any other ideas? MERs are important and I noticed the management fee for BXF is about .2%. With a return of only about 1% does an investment in this make sense?

Q: Being a retired accountant I can't help but feeling compelled to add my two cents on the question raised on goodwill.

Goodwill is simply the difference between the purchase price and the net book value of a company acquired. Say, if Co. A buys Co. B for $12 million and Co. B has a net book value ("NBV") of $10 million, then Co. A will report a goodwill of $2 million in its books. It's that simple.

You can call it an accounting plug if you like and that's not far from what it actually is. As to whether goodwill is good or bad, that really depends on each acquisition.

Using the same example, the $2 million goodwill is considered "good" if Co. B's actual assets are worth more than the $12 million paid for by Co. A. However, if the same assets of Co. B are actually worth less than the $10 million NBV, then that $2 million goodwill is really not an asset. That is the reason why so many acquirer companies have goodwill write-offs a few year after initial acquisition - when the true value of the company they acquired becomes crystalized. Hope that helps.

Q: Hi Peter: I am 81 years. Am considering buying Fidelity Tax-smart withdrawal program. This fund invests 70% S&P/Capped 60 Index and 30% S&P 500 Index. If you can recommend the fund would a 50% to 75% investment of my funds be reasonable? Should I buy on my TD trading account or buy direct from a Fidelity rep? Would I receive the same net income either way? Thanking you for your valuable opinion. Ron Noble

Q: Is it best to hold Canadian bank stocks in an rrrsp or tfsa, advantages or disadvantages?
With thanks. Rose

Q: what is the closest proxy to CPG that you can think of? I want to sell for a superficial loss, however, I don't want to be out of the market for 30 days.

Q: Portfolio question..if I sell a security in my cash account at a loss, can I immediately buy the same security in my sheltered account (RSP or TFSA) without endangering the capital loss or do I need to wait 30 days?

Q: If I receive $10000.00 in dividend income, do I get an additional 18% contribution room in my RSP from this income?

Q: My portfolio is predominantly made up of 4 company's stocks. They are ATD.B, GIL, HCG and SJ. With the exception of SJ (bought it in 2006) I have owned them all since 2002. I have significant capital gains from them all and have been selling them off slowly over the past three years. In each of the past three years I paid significant taxes due to the sale of these shares. I have tried to offset some of the gains by selling some of my losers but the gains are much higher and selling my losers makes the imbalance in my portfolio greater. Do you have a suggestion on how I can help balance my portfolio and avoid paying significant capital gains taxes?

Q: If I sell POT. for a capital loss and buy AGU (same capital investment) am I doing any tax avoidance

Q: out of all the stocks you mentioned that could possibly present an opportunity during tax loss season/window dressing which would be top 5 in terms of potential and safety?

Q: When does tax loss selling start and end this year? Also what are the stocks that are most likely to be hit? The other part to my question is which, if any, of the tax loss selloffs would be worthy of acquiring?

thanks so much for the service you offer! I'll be a lifelong member!

Q: PEG(PEGI:US) pays 7%,which "100% of distribution is characterized as non-taxable Return of Capital" which account is best to hold RRSP, TFSC or regular taxable account. Maybe you can explain why hold it at all , if I am only getting my own money back?
Thanks...Cec

Q: For tax purposes, in which account should I hold ZWU ETF by order of preference, Direct trading, TFSA, RRSP?

Thanks for your honest services.

Bob

Q: Hi I am confused by your answer on ROC in a tsfa In my opinion the tsfa is a ideal place for those stocks that pay a return of capital I have been doing this since inception .My tsfa hold mostly .UN vehicles
Kind Regards
stan

Q: What's your advice for a younger investor with regards to TFSAs and RRSPs versus non-registered accounts? Should we direct all our savings to registered accounts until we max out our contributions and then direct excess to non-registered accounts? Is there a case to be made for the tax-loss advantages of non-registered accounts before looking at RRSPs? I see TFSAs as a more liquid savings account and an RRSP as much less so. Thanks.

Q: Hello,

The following 5 companies are on my buy list to complete my portfolio:

PBH
TOY
NFI
BCE
CAR.UN

I have room for two in my TFSA, two in my non-registered and one in my RRSP. How should I divide the above 5 stocks into these accounts?

My plan is to buy on pullbacks. But I'm thinking about buying CAR.UN now because it has already pulled back on the mortgage news. Does this make sense?

Q: HI 5I, for investor in the high income tax bracket , is there tax advantage to invest in stocks with high dividend in non-registered account and stocks with high interest in registered account. And how to find out the yield is paid in dividend or interest ?

Q: I have not yet exchanged my Intertain shares but if so I would take the exchangeable shares as you have recommended. However I am considering the following option: sell my Intertain shares on the open market this week and buy the Exchangeable shares (probably) when they become available. Could you please comment on this strategy the advantages and disadvantages. Thanks.

Q: I own a stock and i want to buy and sell in an attempt to average down my cost and eventually to get even. I would always use the new money invested to trade in and out. This is in a non- registered account. Can i do this without waiting the 30 day period.

Thank You

Vince