Investment Q&A

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

Q: Hi guys,

I will be able to move on January 2nd one of the following from my non registered account to my tfsa. (Lspd,gsy&shop)
Merry Christmas and Happy New Year's to the staff of 5i
Jim

Q: Hi Peter,
I have taken a very small position in NGA.WS using my margin account. I agree the company/warrants are highly risky but I like the 2027 expiry date and that some large investors have put money in. Lion also seems to be making and selling a small number of EVs currently so there is some experience - but certainly it's going to be stretch to scale up. The warrants will either go to zero or pull off a "multi-bagger". I think the warrants should be placed inside my TFSA but I have no contribution room available until 2021. As the value of warrants exceed the $6,000 allowable deposit for 2021 I would need to transfer out 2 or 3 of my CSU shares before the end of the year and then transfer the all the warrants inside the TFSA in the new year as a contribution in kind. Do you think this is a good strategy? Possibly you feel the warrants should be kept inside the Margin account so I could claim the loss! Any thoughts you have would be appreciated.
Thanks,
Jim

Q: Which do you think makes a better long term TFSA investment?
Thanks

Q: Can you suggest any stocks (non tech) US and/or Canadian, which looks attractive from a capital growth perspective for a TFSA for the long term? Does anything look attractive after tax loss? Thanks. Shyam

Q: Hi Peter, Ryan and team,

There are 8 stocks in my TFSA. REAL is 5% and LSPD also is 5% of the value of my TFSA. Which of the 2 stocks do you think I should buy more of?

A more broader question, is 8 stocks in a TFSA too many? Should I try to amalgamate to 5-6 stocks?

Thanks.

Q: Can I transfer cash from my CAD TFSA to my USD TFSA (same institution) without it being considered a withdrawal and new contribution? Thanks.

Q: If you were to buy any 3 US stocks at today's pricess for long term hold with a focus on growth what would they be.
Thx