Investment Q&A

Q: Hello I5, I would appreciate your help to rate the above stocks in terms of safety of capital and reliability of dividends to buy into my TFSA. Perhaps can suggest better ones.
Regards, J.A.P.Burlington, On

Q: hello 5i:
I'm having a bit of trouble with the specifics of taxation on US dividends, on stocks held within a TFSA. I'll ask it in 2 parts. Perhaps the following example will put this one to bed. If we hold XYZ, a fictitious US company paying a $1 dividend (simplifying as much as possible), then a 15% witholding tax is applied. Correct so far. Now, are the remaining dividends ($0.85/share) taxed again, or are they free and clear?
Part 2: do the US dividends received from XYZ have to be declared in annual income tax reporting?
thanks for your help
Paul L

Q: Hello

I am going to re-balance my family portfolio (by sector/industry mix and bond / stock mix) once the Dec 2016 statements come in.


In my family we have 2 RRSPs, 2 TFSA, and 2 RESP accounts.


In the past I would add up all the portfolios together and make a pie chart in Excel to find out our bond & stock mix and our sector/industry mix.


Before I start this exercise this year I wanted to have your opinion.

How do you recommend balancing? Each account separately or other???

Should I even consider BONDS inside my kids RESP since they are just 2 and 4 years of age?

Thank you for your help.
Regards
Stephane

Q: Hi Peter.
I do not have any tec or health care stocks in my Tsfa. What 3 stocks would you recommend for each sector. Looking for a 3 year hold as a minimum.
Thanks
Marc.

Q: I have not been as successful with my wifes TFSA as my own; currently have T 11%, AX.UN 6%, HR.UN 19% POW 29%, CDZ 18% and FN.PR.A 5%. Can you suggest a better mix? We are both in our early 70's and have RRIFs, trading accounts also with about 25 equities, plus about 150K in laddered GICs

Q: I have the listed companies in my TFSA($60k). I haven't been too concerned with portfolio weightings due to the portfolio size and have let the winners run. As a result close to 50% of the portfolio is held in just 2 stocks (CCL.B and CRH) I have nice gains in the others except DBOX and SYLOGIST which are both flat and I have considered switching out. Two questions I have are 1. Do you think it is a prudent strategy to stay this course or would you rebalance keeping in mind these weightings are not that out of whack when you consider my other portfolios? 2. What name(s) would you consider adding to this mix for my 2017 contribution of $5500.

Thank you and Merry Christmas to the entire 5i staff for your outstanding service.

Q: Each year I have maximized my TFSA contribution and have a total value of $80,000 consisting mainly of small cap stocks such as BYD.UN, PPY, CRH, HNL, and tend to rotate stocks periodically. With my advancing age I have toyed with the idea of simplifying the management of my TFSA by holding a single ETF, that being ZDY. Your insight would be appreciated.

Q: Hi Group Hoping for a prosperous new year in 2017 for us all. I got ahead of myself and purchased $5.000 of GUD. What the penalty for this I bought it last Friday Dec 23 ...Can I reverse it and then purchase on the 2nd when markets open or?

Q: Hi Peter and Ryan, I'm just making sure I understand the withdrawal rules correctly in dealing with TFSA accounts. I have some cash accumulated from the payments of dividends during the last few months in my TFSA. Am I allowed to withdraw say $2,000.00 in cash from my TFSA account in the next few days (before December 31). Then after Jan 1st, 2017, does my new limit for 2017 become $7,500.00? If so can I transfer (in kind) shares from a cash account worth $7,500.00 into my TFSA without issues? Thank you so much for all you do and all the best in the new year. Mario.

Q: I am considering moving some or all of these from a cash account to a TFSA. Would you agree with this move and if so is there a particular order or any that you would leave out. Thanx Robbie

Q: I am looking ahead to my 2017 TFSA contribution in early January. Please provide 3 or 4 of your top growth picks (in order of preference).
Thanks as usual for your great work. RAM

Q: Hi The stocks I hold in both tsfa generate $7200 annual income combined .In both accounts we hold RPI.UN STB and GH
STB is held in US $.
Hope this helps
Kind Regards
Stan

Q: Stan,one of the member states that made a comment today that he is making $600 a month on TFS. What stock he has and how he does it? .I am loosing money on my choices.Appreciate a response from Stan if possible so we all can gain money too.Ebrahim

Q: A comment by a member on his tsfa contribution .in my opinion the tsfa naps been the the best investment vehicle that ever was created and I will always be thank full to the Harper gov for introducing it .
My wife and I generate $600 tax free every month in dividends and in the new with add 7200 that we took out plus our 11000 allowance .
We have found lif rif and Resp to be a burden in our old age i view it as money behind the wall and withdrawals cause claw backs to our oas .
I would encourage ever one to take advantage to what I believe is the best investment vehicle ever introduced
Best regards
Stan

Q: Hello 5i team,
I think it is time for my wife to redeploy her cash position in the combined RRSP and TFSA portfolios.
I’m listing below her current holdings by the various TSX sectors, by weight and my proposed choice of additions. I would appreciate your opinion as to your order of preference at this time.
Consumer cyclicals (11%) CGX, MG; propose CCL, BYD or TOY
Consumer defensives (0%); propose ATD, DOL or PBH
Energy (8%) ENB, KEY: propose a producer
Financials (13%) SLF, TD; propose any addition?
Health (6%) ZUH; propose any addition?
Industrials (7%) BIP.UN; propose CNR, SIS, STN, WSP
Materials (0%); propose MX or SJ
Info tech (13%) CSU, GIB; propose ENGH, KXS or SYZ
RE/Telcos/Utilities (15%) BCE, BEP.UN, CIGI, FSC; propose reduce BCE or sell CIGI
Cash (26%)
I would not mind that you deduct any number of credits.
Thanks,
Antoine

Q: Hello Peter et al:

We are "nearly retired"! We hope NOT to need TFSA in the near future, may be not ever! RRSPs and non-RRSPs are fairly well diversified. The question(s) are: Do we need to still contribute to TFSA? (We haven't contributed to RRSPs in a few years.)
If we do contribute $ 5500 each 11k for both of us what two stocks ( one each per a/c) will you recommend? Our major risk factors are health (always unpredictable at this stage in one's life) and (adult) kids who are at the mercy of our politicians and their policies.
Thank you for all your help.
Mano.

P.S. One small suggestion....not sure if this can be pulled off at CMS or not. If in some way Ross Grant can give his BTSX portfolio in January issue, it would be cool. I know technically it may be difficult. But even if it can be uploaded on the CMS web site within a week and then appear in February issue, it will fine.

Q: I have built up a 83k TFSA by using a mix of picks i have chosen on my own and with your valued advice but find it very stressful at times and would like to put it in hands of a trusted investment fund(s).I am seeking your opinion on dividing the TFSA into the three funds offered by Edgehill Funds.Guardian ,Advantage,and Select.Would this be a good strategy or should i continue to stock pick among your holdings in your funds.I am looking to retire in 10 years and this would represent 15% of my retirement total

Q: Hello,
I currently work for a company that has a share ownership program where my contributions are non-tax sheltered, while the matching contribution from my employer is tax sheltered. Starting Jan.1st they are now offering an option to have my personal bi-weekly contribution go into a TFSA instead of the non-tax sheltered option. Seems like a good option to me but I'd like to get your thoughts/comments before I make a decision. Thanks!

Q: I manage my husband's and my TFSA's as if they are one account so we do not duplicate the stocks in the 2 accounts and can have a reasonable size of position. We have a similar weighting of ALA, REI.UN, SIA, WSP, ZEB, BEP.UN, CGX, and HR.UN and PKI, and a double weighting of CPD and CDZ. We currently have about $110K in the two accounts and $20K of that is in cash. Can you suggest what we might add to or change in the above list, considering that we prefer income paying securities with some growth prospects and want the TFSA's to act independently of our other investments as a relatively conservative growth vehicle.

Q: I hold HCG and MFA in TFSAs at 1.4 and 1.8 percent, respectively, of my & my husband's total portfolio. (combined calculation as recommended by 5i!) They are both down close to 30% since I bought them. Given their percentages, should I just leave them, or should I take my loss in one or both, and move on? Thanks for your help and support.