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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Re: Q concerning 5i patron's grandson with 2k to invest; should it be placed inside a TFSA?

My two adult / student offspring were recently in a similar situation and I agree with all that you said but would like to add some additional info:
- TD bank is currently running a promotion that if a person opens a new TFSA, they will have $100 placed inside the account in Mar 20' (promotion ends early Mar I believe)
- If the TFSA is opened at a TD branch (not a brokerage account) then there is no fee
- The TFSA account can have GICs, mutual funds and/or a cash component however, only a GIC or mutual fund will qualify the account for the $100 bonus

For each of my kids, I had them buy a one yr GIC (approx 1.6% as I recall) and place some short term cash in the cash component of the TFSA; the cash earns approx 1%.

You are right in saying that there will not really be much benefit to be gained but there are some intangibles to be considered: this is a great financial learning experience for a young person, the $ is placed out of their immediate grasp until they are more likely to need it and $100 is a terrific bonus for a small account.

Steve
Read Answer Asked by Steve on February 26, 2020
Q: I am in the process of helping my fiance invest her money. She has 14 000 in her TFSA. Can you suggest a mix of stocks? She still has approximately 25 years left in her job as a nurse. As she has many more years of work, she is willing to take on a high degree of risk for a 'growth portfolio.'

Regards,
Ryan
Read Answer Asked by Ryan on February 24, 2020
Q: Hi guys, I own the following with the respective total portfolio weightings. My TFSA is all CDN and RRSP is a mix of USD/CDN. When I rebalance, should I try and rebalance with respect to % of TFSA and % of RRSP or rebalance each holding as a percent of overall portfolio? If the latter, I would consolidate some of the holdings in my TFSA to bump up the individual weightings. Are there any obvious adjustments that I should make? I’m heavy on AAPL but have sold so much of it over the years I’m very tempted to let the remaining shares ride.
Please deduct as many credits as you see fit and many thanks for the excellent service you provide. The Q/A is invaluable as are the periodic market summaries. You’ve pulled me away from the panic button many, many times.
RESP:
VFV 1.30%
RRSP:
GOOG 4.78%
AYX 3.77%
AAPL 11.77%
BNS 5.26%
ENB 5.50%
GH 3.69%
XQQ 6.23%
JPM 4.80%
GUD 1.63%
NVDA 5.91%
DIS 3.25%
VXC 24.23%
TFSA:
ATD.B 1.96%
CAE 1.30%
WEED 0.48%
CSU 2.73%
GSY 1.94%
GC 1.59%
KXS 1.42%
LSPD 1.80%
MX 0.67%
PHO 1.14%
SHOP 2.69%
Read Answer Asked by Mark on February 19, 2020
Q: Hi folks i have $6,000 to put into my tfsa account this year. Would just like your thoughts on these current companies, please and thank you for all your help.
Read Answer Asked by wilson on February 19, 2020
Q: We have given our 19 year-old Son $12K to maximize his TFSA. I have advised him to watch North American ETFs, now that we are at the top of the economic cycle. Can you recommend a few individual Canadian stocks with a 6+ year time horizon? Would you recommend any International, European or developing world ETFs?
Thank you!!
Grant
Read Answer Asked by Grant on February 18, 2020
Q: Good morning. In my TFSA I am down 40% in both TSGI & TOY. What are your thoughts about replacing these with LSPD and GOOS. This would be for a 4-5 year hold.
Thanks, Peter
Read Answer Asked by Peter on February 10, 2020
Q: If a person has mostly dividend payers in a TFSA and withdraws the dividends received each quarter, how would that affect the contribution room? Is that considered a withdrawal that would increase your contribution room?
Read Answer Asked by Marcela on February 03, 2020
Q: This question is about covered call strategies. I know that your mission is primarily to gibe advice on individual stocks but you are often good enough to share your knowledge on other points, as well. So, i will submit this question. If it doesn't fit into your framework, that's ok, too.

I know thatyou like to sell covered calls a month out. If i don't have any intention of owning the stock, i imagine that it doesn't really matter if i buy the stock one month, collect the option and then buy the same stock back again a month later at a higher price. Because i am only interested in collecting money on the money i have. Right? ( i am doing thisin a tfsa. I have googled it but haven't found a definitive answer on whether I can do this there? Am i ok with that? ). If i am going month by month is it better to take a lower payout, knowing that you are more likely to have to give up the stock, or go a couple of dollars less in the premium payout in order to have a higher possibility of keeping the stock, realising that this is a monthly process? a number of questions here so please feel free to subtract the appropriate number of points, if you decide to answer.
Thanks again for your grat service
Read Answer Asked by joseph on January 27, 2020
Q: Could you please explain where the best place for a global or US mutual fund or etf is to be held and why?
Thanks
Read Answer Asked by Gregory on January 24, 2020
Q: As a comment on Joe's question about his mother-in-law, there is indeed a lot of questions to be answered but I wonder why there are no TFSAs. The first thing I would do is place as much as possible in a TFSA and especially put as much of the GIC money in it since the GICs pay interest which attracts tax at the same rate as regular income.
Read Answer Asked by Fred on January 13, 2020
Q: Hi 5i,
I'm considering our 2020 TFSA contribution options and wonder whether we should add to our BAM holding (1.7%), OpenText (1.5%) or start a new position in Kinaxis? Our other Brookfield holdings (in registered accounts) include BEP (5%) and BIP (4%). Thanks for your advice.
Read Answer Asked by Martha on January 07, 2020
Q: Happy New Year and welcome to a new decade :)
I plan to take this year's TFSA contribution and divide it equally between ARE, REAL & XBC. The goal is growth. Any dire warnings before I proceed? Thank you.
Read Answer Asked by David on January 07, 2020
Q: I need to invest the new $6000 TFSA contribution for my 24-year old son. He won't need to touch the money for a long time. What would be your suggestion for this investment , given that his other holdings are already mainly growth oriented (SHOP, CSU, SIS, PHO, XIC and ZLB)?
Read Answer Asked by M on January 07, 2020
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