Investment Q&A

Q: Any good investments that u could give me for my TFSA for 2019. I own the following:
in my TFSA:. CAE, COV ,EIF, QQQ, IRDM, KXS, PPL, SYZ, WSP. . I just turned 80. Ernie, Thx.

Q: I have a bunch of shares in a computer share account. If I transfer those shares into another broker, would there be any tax consequences? Any idea how the average buy price should be calculated if I transfered some but not all the shares? If no tax consequences, Would taxes only be generated if transferring to an rrsp or tfsa broker account?

Thanks for the great service.

Q: Hi, my 25 year old son has a TFSA with the following holdings: ATD.B, BAM.A,GIB.A, CXI, WEED,DSG,XTC,GWO,GUD,TOY,TSGI,SYZ,SJ,WCN . Are there any holdings that you would exit in this portfolio. What would be suitable replacement considerations?

Q: What Canadian listed ETFs that are invested more so in growth stocks would be suitable for a TFSA with a mid to long term horizon? I wish to have geographic diversification through one or more ETFs and one or more ETFs investing in small to mid-cap stocks. If there are mutual funds that have better performance, after fees, please list as well.

Q: Hi 5I,
The above names are all owned in my TFSA. Of these, I am underweight in COV, IWO, PHO, SDX, SYZ AND VB. I've got some cash to put to work with a long term objective. With consideration to the sector weighting, and my under weights, would you recommend I top up on any at this time or maybe introduce a completely different name or names to the portfolio? Thanks!

Q: Can you confirm the reason for holding US stocks in registered accounts? When you say Registered accounts are you including TFSA's? Thanks

Q: Happy New Year to you! I am considering my TFSA strategy. I hold a RRIF which means that I must take out a certain percentage of it every year. Since I don't need the cash, I prefer to transfer some stocks in kind to my TFSA, but I am not clear which stocks make the best candidates to do this. I know that you think growth stocks are best for a TFSA, but I am not clear on what a growth stock is. (What I thought were growth stocks all went down!) Are dividend payers better in a RRIF or TFSA? American stocks? Oil stocks? Precious metals? Consumer discretionary? It seems to me that growth stocks are more volatile. Am I correct in this? Thanks for your advice.

Q: In the same vane as Vineet's recent question , I am interested in spreading the stocks of the balanced portfolio across two TFSA's and an unregistered account. To that end I am wondering which 12 of the balanced portfolio you would consider the best for growth and inclusion in the TFSA's.

Many thanks
Mike

Q: My wife tfsa holds these 3 names only (down 37%) CLIQ and ZZZ the main reason. 6k to add this year, would you add to above or can you provide a name for consideration. Any thoughts on these 3 existing names?

Q: My wife and I have approximately $200k in our TFSA. I wanted to purchase 10 high growth stocks ( equal amounts). The following is the list I had in mind: kxs, pbh, pho, sis, toy, tsgi, tfii, gc, otex, byd-un. Would you delete or add any company to this list? Time frame is 5 years. Thank you.

Q: Do you recommend US-based, Total Return Index ETFs (which use total return swaps) for TFSA to avoid US withholding tax on dividends? For example HSX.

Q: Hi Peter & 5i team,
These are the current holdings in our grandsons RESP ( age 5). We are adding new money. Could you please give your opinion on our current holdings and what suggestion would you have on acquiring a new stock or alternatively topping up an existing one.
Thank you very much.

Q: With regards to a recent post where one transfers in-kind a stock from an Open Account to a TFSA:

If there was a capital loss this would be a superficial loss as you had mentioned. As for taxes if such a transfer were made, is it a case of simply ignoring (i.e. not claiming) this loss) on your tax return? Does anything else need to be done?

Thanks.
Jim

Q: Given the uncertainty in short term market direction,I have 50% of my TFSA in cash.I believe Canadian interest rates are not going to rise.I am considering the choices listed above, unless you can suggest others.I also have some cash in my US$ RRSP and am considering the Vanguard fund for this cash.US rates may climb further,but not much.Perhaps you could rate these according to risk.
Thank you.

Q: Hello 5i,
Further to Ken's comment about transferring "In Kind" from an RRSP to TFSA: my wife and I have just completed this process for the second year in a row. We select holdings that we have had to buy in our RRSP's even though they should have gone into a TFSA in the first place - think SIS and VET for example.
The process involves the transfer of the shares first into a margin (non-registered trading) account and then into the TFSA. The Fair Market Value may or may not reflect the current stock quote.
There is definitely withholding tax which is on a sliding scale depending upon the size of the transfer. (We both had a wee bit of extra room, so our withdrawal - contribution was larger than the $6,000.) Also, the withholding tax will be required to be paid as cash, so it is important to have enough cash available in the RRSP account to cover it. If there is not enough cash in your Canadian RRSP side, you will have to either sell something or transfer cash from your U.S. side if you cash available there. It is something that needs to be accounted for in the decision to proceed.
We feel that taking the tax hit now (both retired and under 70) will benefit us in the long run (however long that might be....). We had a long time of benefiting from RRSP's and now it is time to further enhance the TFSA side and reduce the impending limitations that will come with age.
Hope this is of some help to Ken and perhaps others.
All the best for a New Year to all!!
Cheers,
Mike

Q: I think you may have answered this type of question last year but I can not find it. I have a TFSA and a cash trading account. My TFSA is about 35% compared to 65% for the cash account. I follow the balanced portfolio. If you could only hold 10 stocks in the TFSA, which would you designate for the TFSA?
Thanks and best wishes to the team at 5i!

Q: Good Morning
I was considering transferring a stock holding from an investment account to my TFSA. There is no tax implication.

In your opinion, regardless of what equity you may buy or transfer into your TFSA and discounting the tax implication of transferring a security from an RRSP, would it not be better overall to add new money to a TFSA? Just thinking I would be better off overall to build my total investments in the market rather than switching my holdings around?
Thank you
Publish at your discretion

Q: Dear Peter et al:
Happy New Year to all of you.

I have executed my New Year resolution!
No, not my new fancy diet or paying for a fancy gym membership!
Contributed 12 k (6k each for wife and I) towards TFSA for 2019!
The question is how and when should I buy safe, steady growth Canadian stocks with dividends.
Anything that you feel fits these criteria?
Just 2 stocks would be fine.

Q: Hello,
i have little exposure to financials in my TFSA. What would be your top 3 ideas in order of preference at this time I could consider? I plan to own for the next 10 to 15 years if possible.
I was looking at GS and FSZ given the yield and they are trading near their lows. I guess the sub-sector they operate in makes me a bit cautious.
I own full positions of BNS and SLF in my RRSP.
Thanks,
Dan

Q: Wanting to make an initial investment into equities within my TFSA which has lots of room. Planning to put in about 10k. Planning to buy and hold long term. Would like a recommendation on growth stocks to get started and have a bit of diversification. Also should I buy all at once or buy some names now and others later. Thanks!