Investment Q&A

Q: Recommendation sought for investing new TFSA contributions. Expected drawdown on TFSA to start in 4 - 6 years.
My wife and my combined TFSA holdings are about 18% of our total portfolio, and the combined TFSA holdings are made up of:
PRMW & KEL <1%
PXT 3%
BCI 4%
BAM 7%
SIS 8% (20% loss)
XAW 8%
KXS 11%
VGRO 55% (the only investment also held in other accounts)
Cash 3% plus new contribution
I'm considering WELL (for growth) and FTS (for dividend & stability), possibly TFII?, or add a bit to PRMW (none of these are held in other accounts), for the new money.
Reasonable? Appropriate? Other recommendations?
Thanks for all you do, and I wish all of you a healthy & happy year.

Q: Hi Peter
Am looking for candidates for my tfsa
Could you please rank these based on potential upside, debt and balance sheet.
Also, am trying to transfer USD from my TD Bank account or my TD non-reg USD account to my tfsa USD acct. It is not working -- am I not able to transfer my own USD into the tfsa USD account? ie. must I convert from the tfsa CAD acct? It is bizzare.
Thank you for your great support, very unique indeed.

Q: Happy New Year. Your opinion on a $50K RRSP account for a 10yr+ window with the above mentioned equal weighted shares (with this time frame, I suppose emphasis on capital appreciation would be preferable):. If you prefer others, which ones and why. Thanks. Jacques

Q: Of the above stocks which would you feel is the best to add to our TFSA and why? Could you also rank them in order best first, in case I decide to add 2.

Second related question: LSPD, CTS, and DCBO are in a non registered account They could be moved over to the TFSA but am reluctant to do so because l have a capital gain on them, 200%, 60%, and 60%. LSPD would be a partial move due to its greater value.
Thanks for all your guidance and suggestions in the Q and A. The 3 above profits are a result of 5i.

Happy New Year to all.
John

Q: Thinking of doing something new - Add US stocks to TFSA.
As of now, this account has a balance/growth Cdn stock tilt, like the ones in the 5iR portfolios. Read on 5iR, best to include no dividend or low dividend US stocks. Question - is there a rule of thumb or range for holding US stocks in TFSA or is it all just personal? 
Another question - for longer term holds in TFSA, what US stocks would you consider?
High 5 for the guidance!!!....Tom

Q: Hi, I am looking at topping up my TFSA with a transfer in kind from a cash account. I realize that doing so with a profitable holding will trigger a capital gain, so am wondering about transferring stock that I currently show a loss on. Granted it is a paper loss and I do not wish to sell the stock outright as it is NVDA. Would the same be true here in that I will trigger a capital loss, because technically the holdings are sold in the cash account and bought again in the TFSA? If so, then it seems like an interesting option - would you agree? Or is there an alternative you would suggest that is better? As always, your thoughts and input are greatly appreciated.
Happy New Year!
Dawn

Q: If I open an TFSA in my Wife's name and borrow from bank $75,000.00 (LOC)n my name to buy stocks ,, can the banks interest be deducted from my Annual salary or Cash account dividends as an expense.? I have my own TFSA. Is their such a thing as a "spousal" TFSA.
HNY...CEC

Q: Hello all - Happy New Year to everyone in the 5i universe!

This is not a question per se, more just a follow up comment to Adam's question of Dec. 29/20 asking about withdrawing $C from TFSA and then immediately replacing with $USD. Adam implied some "technical" or broker issues impeding his plan - perhaps just the length of time the bank/brokerage requires for settlement.
I do not see any reason he might not consider using Norbert's Gambit within the TFSA (if the TFSA is any different than an RRSP for performing this transaction, please let me know). The exercise can be completed for the most part within one day other than the actual settlement date of T+2. As long as one knows that and acts accordingly, one should be able to achieve the desired result.
I use N.G. when required within our RRSP's (RBC Direct Investing) and have found it to be fast, convenient and cost-effective as long as I perform it properly, paying attention to some of the little details that they warn you about.
If any of the foregoing is in error or if I have misconstrued his question/goal, please feel free to correct me as required and I apologise in advance.
Best to all in 2021!! Stay safe and well!!
Cheers,
Mike

Q: Feel free not to publish if I’m mistaken, but I would want to caution Keith (Dec 29) who said he might contribute his Nutrien shares to his registered account and would realize a capital loss in doing so. I do not believe that one can claim any capital loss when the disposition results from a contribution to one’s RRSP or TFSA. He would need to sell the shares in his non-reg’d account (and realize the loss) and then contribute the money if he chose, but should not then repurchase the NTR shares until 30 days has passed.

Q: Hi All: I will be Transferring 'in kind' from my open account into TFSA. In your opinions which of this list might have the better growth potential, therefore capital gain protected within the TFSA? Too Bad for the $6K limit. Would you assist me in prioritizing my list?
Thank you for the great reading (Questions and Answers) and wonderful Web site. Happy New Year to all your great staff and all the happy 5iResearch Clients!.

Q: In a TFSA is one allowed to withdraw C$ from the account and instantly replace the amount in US$ equivalent? (For various “technical” reasons – excuses—given by broker I am unable simply to redeem C$ and replace with US$ at beginning of year in just a couple of days!)

Q: Can gbtc be held in a tfsa or rrsp ?

Q: If I withdrew $6000 from my iTrade TFSA before Dec 31 could I deposit $12000 into my Wealthsimple TFSA in January 2021 thank you and Happy New Year!!

Q: In my TFSA I currently hold XBC, SIS, KEY and PKI. My philosophy has been, after an initial investment in XBC, to use the dividends from SIS, KEY and PKI to purchase more XBC. I realize that KEY has the much higher dividend but taking into account safety and capital appreciation would you add to KEY with my 2021 TFSA contribution or SIS or PKI?

Thanks Ken

Q: Hi again, thanks for your reply to my last question, which you can make public. I wanted to know: if I sell a stock or transfer out a stock from my TFSA, do I have to wait until the following year before I can bring the TFSA back up to the same level? Thanks

Q: Hello Team 5i,
I own the companies listed above within a TFSA
REAL is smallest holding at 11% of this account = approx 12k
I will add 6k to TFSA in Jan 21

I am considering four options
Keep REAL and BUY more REAL with 6k
Keep REAL and BUY more XBC, STC, ATA and/or WELL with 6k
SELL REAL and BUY NVEI with 18k
SELL REAL and BUY more XBC, STC, ATA and/or WELL with 18k

-sector allocation not a consideration
-transaction costs not a concern
-concentration (# of securities) within TFSA not a consideration

Your thoughts please?

All the best to all the people at 5i who provide such a wonderful service.
Steve P

Q: I am trying to clean up our RIF, TFSA, and cash accounts. I believe that 5i has suggested that capital gain stocks are best in the TFSA. A RIF should not have dividend stocks, they should be in the non registered account.
I want to move in kind BCE from a TFSA account to our non registered account in December. In January I want to move BCE, CN, and RY out of a RIF. This would be the 2021 withdrawal from the RIF. These would be moved in kind from the RIF into the non-registered account. CN would be moved same day to theTFSA in January as a part of the contribution for 2021.

I thought I had sent the same question on Sunday night but I have not had a response yet so I’m assuming that it was lost somewhere. Hopefully I have not confused you and I have given you the picture. My question primarily is your thoughts on the general idea of what I have proposed. The CN stock is being put in to the TFSA because it will be more of a growth stock and the dividend is smaller.

Also where would you suggest a US stock be held? We have one or two growth stocks like SQ, no dividend, that we would like to put into the TFSA. Is that appropriate?

Thanks again for all that 5i does. Much appreciated.
John

Q: Ah! The magic of compound interest. Be warned I did this by my adding machine. What I came up with:
If you contributed the max. amount every year to your TFSA starting Jan.1/09, & made 10% every year, your total contributions of $69,500. magically became $133,029. on Dec. 31/20.
Almost a double! It will be when you put up $6,000. for 2021

Q: I have several under- performing and losing stocks in TFSA and RRIF accounts. Sometimes the loss will be as much as $3000. What is your opinion about selling such stocks and deploying the money into something else, bearing in mind that it solidifies the loss and a tax loss can't be claimed.

Q: All things being equal, which stock would you transfer into a TFSA from a cash account. I will have the room in Jan