Investment Q&A

Q: After reading a previous question about Bam.a and which account to place it. You suggested TFSA or non-registered where it is a growth name. I’m wondering of the 3 accounts I have regular cash (non-registered), TFSA, RRSP. What types of stocks does your team suggest should go into which account generally?
I was under assumption that a non-registered taxable account would be a good place for High Div stocks, not growth stories. There by eligible dividends be tax free and low capital gains to be actually taxed. Or is growth stocks good for there too because of claiming any possible losses?
Thank you for your clarification

Q: Looking to add BAM.A and SHOP to the porffolio, which would you add first for a youngish investor in a TFSA? Is BAM.A going to be in the dog house for years to come? Does SHOP still have a long runway or have new investors largely missed the boat? Should one wait for a pull back on SHOP before stepping in? Also, considering the added cost of currency conversion, is there any reason to choose QQQ over HXS for in a TFSA? HXS is smaller, but is that much of an issue for retail investors? Please deduct credits as you see fit.
Thanks

Q: I am helping a 19 year old relative set up a brand new TFSA. With $12,000 to invest, I would like your thoughts on the following possible approaches:

1) The market rally seems overdone to me in the short term, although maybe there are not many great alternatives, so investors are buying stocks anyway. But Sep/Oct are often volatile, so perhaps we should hold cash and invest on the pullback?
2) Since the time frame is decades, we could disregard the current market conditions and invest now.
3) Hedge our bets - invest half now, and keep half to take advantage of pullbacks.

When we do invest, we will likely invest half ($6K) in an ETF, and the other $6K in 3-4 stocks. What specific ETFs / stocks would you suggest?

Thanks for your sage advice!

Q: You commented recently that "U.S. dividends held in a TFSA are subject to a 15% withholding tax". I was wondering if you could describe how this unfolds. This was in a U.S. TFSA.
I am thinking of setting up a U.S. TFSA and would like to know how it works prior.
I realize that a person could ask their accountant but anyone who has this type of account could also tell how it works.
Thank you
Margaret

Q: Hello 5i members,
In one of the recent questions i noticed that you had quite a positive view on Microsoft for growing , in the future. I hold some Microsoft in my TFSA and although I don't like the idea of having to pay US tax on the dividends, I have felt that because I am positive about the growth of mfst and because the dividend yield is only .95 per cent, I am better to keep it in my TFSA despite the dividend tax. I was wondering how you would see a situation like this
thanks

Q: Hi Peter, Ryan, and team,

My wife's TFSA consists of the above holdings. NFI is down 73.4%, and XMA is a tiny holding where we park cash (no commission with iTrade). The others are doing well, but perhaps they're not the best when held in a TFSA. Are there any outright sells, and what suggestions do you have to employ the possible cash? We'd like a bit more oomph from this account. Your advice is very valuable.

Q: Hi Peter/Ryan, I would like to buy AAPL for my TFSA, first of all can an American company be put into a TFSA and would the same rules apply to capital gains or losses, or what is different about an American company in a TFSA. Secondly, they are about to split is it better to buy before or after a split. Thanks

Q: In response to the question about the risks of owning QTRH in your TFSA on the US side trading on the OTC, my understanding was that Securities that trade on OTC markets are not allowed within a TFSA and that you could have to pay penalties and be subject to additional tax reporting requirements if you hold these securities in a TFSA. They may want to double check to make sure that this applies to a stocks that ONLY trade on the OTC as QTRH trades on the OTC as well as on a major exchange so it may be ok to hold in a TFSA?.

Publish if you think this is relevant.
Thanks
Scott

Q: Hold all three of the above in my TFSA. Two years to retirement. Will need good income at that point. Your thoughts please - buy, sell, hold?

Q: Hi,
In my TFSA ..Im holding ECN ,PKI , REAL , SIS , XBC
I have some cash to buy 2 more cie ,, can you recommend what I should add.

Thanks

Q: In each our TFSAs we have ZLB and CDZ plus cash. We understand that we should diversify our TFSA investments with a minimum of 5 different ETFs or mutual funds in each TFSA. Should we also consider having different investments in each TFSA?
Thank you Bradley Kempston

Q: Hi Everyone at 5i! My son has a TFSA with the following holdings: ATD.B,BMO,BNS,ZWU,BAM.A,ENB,FTS,GWO, KXS,LSPO,OTEX,PBH,SHOP,VGT. Courtesy of the rebalancing of Shop, he has 50K to be redeployed. I would like to purchase five companies. Any suggestions, considering what he has in the portfolio already? I am looking for long term holds , preferably growth stocks. Cheers, Tamara,

Q: My TFSA is about 2% of my portfolio value. Should I invest in just 1 stock or should I diversify and buy about 5 different stocks? I purchased 5 stocks last year and most are down considerably since March. (NFI, SIS, TOY).

Q: I’d like your opinion on where certain BP holdings would be best placed in TFSA as opposed to a cash account, and if it makes sense to shift low growth stocks to the registered account and higher growth to a TFSA.

I’d like to transfer approx 3 stocks (lower growth/dividend payers -PBH, ENB, SIS from my TFSA into the cash account in December. In January I plan on transferring the same value amount back(higher growth/lower DIVS - CSU,ATD,BYD, KL plus $6000 into The cash account.

Would this be in line with TFSA rules and would it be beneficial to me to do? And what account would you buy NFI In? Still waiting on better momentum before repurchasing.

Q: I own stocks with a broker in my TFSA. I also hold both Canadian and USA registered stocks. Can I put registered stocks in my TFSA? If so what is the process?

Q: In response to a recent question on BIP.UN, you mentioned it is best in a RRSP or non-registered rather than a TFSA. Is that the same with BAM.A:CA and BRF.PR.E:CA as well? Is the RRSP the best account tax wise? I understand this is true for all US Dividend paying stocks and US Reits, but is it also the same for any TSX listed stocks that make income outside of Canada? Then for TFSA accounts, are they best for Canadian and US growth Stocks, and Canadian Reits?
Thank you!

Q: I am about to become a Canadian non-resident for tax purposes. (once borders reopen). I understand I can keep my TFSA in Canada with no tax issues, but cannot contribute anything more to the TFSA. Does that make sense to you? If so, would ZGQ be a good all purpose ETF to leave in my TFSA. Any issues with this etf being in a TFSA? Any other ideas? Thanks.

Q: Hi 5i, Stocks for a 5 year hold, I was thinking of Shop, CSU, GOOGL, how do you see growth of these stocks (inside my RRSP). Any suggestions ? Thank you!!!

Q: Hi Team, would you suggest some growth names for TFSA at the moment. I do have some Canadian stocks under myTFSA.
Keep up great job.

Q: Hello 5i team,
Thank you for your help today- what I’m hoping to get some perspective on is tactics one could do to grow a portfolio- what you’d think wise or stupid, please.
In TFSA, two holdings happen to be up: AQN by 35% and NPI by 21%. Everything else is in the minus by -30 to -35% due to the current situation as generally they’re ok businesses, like two banks, phone co, etc.
Tactically, would it be an idea to sell the two that are up, and buy a few which are quite down now, then in due course replace what was sold?
I was thinking of more banks like BNS or BMO, and PPL, CNQ,SU, and KEY.
The idea being that the gains over time would be more than the growth in price of the two being sold, thus netting an overalL growth in funds.

In RRSP, two are close to break even, just a couple hundred dollars each in the red, namely T and NA.
If sold, I was thinking of BIP, BPY, and maybe SU, CNQ, and BMO- fairly similar to the TFSA idea.

I like dividends, I know SU just reduced; I’ve not heard if these others have/plan to. I think I’m fine with a 3-5yr estimation of recovery period for these ‘down’ stocks, if you think that’s likely.

I’d appreciate your counsel on this, thanks very much!