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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: My son ( 31, single, no dependents, good salary) has $10,000 cash in his TFSA and $30,000 cash in his RRSP. He would like to begin building a growth portfolio with a 10 to 20+ year time frame. No stocks are owned at this time.
1) Suggestions on where to begin?
2) He plans to add $500 to $1000 monthly to the TFSA for the foreseeable future. Suggestions on how to employ these contributions?
Thank you, Trevor
Read Answer Asked by Trevor on March 13, 2017
Q: I was listening to a guest on BNN market call tonight Mar 3/17 and the guest stated that REIT's should be held outside of a TFSA as the income is return of capital and is tax differed. Is that correct that when you dispose of the individual REIT in your TFSA that you will be taxed on the investment as capital Gains.I thought all gains and income on any type of investment excluding US holdings in a TFSA are tax free. I intend to do monthly withdrawls from my distributions from my REITS, Dividends and ETF's monthly in my retirement and thought all these withdrawls would be tax free as well as any sale of the stock/REIT/ETF position.
Could you give me your opinion.
Thanks
Read Answer Asked by Michael on March 10, 2017
Q: I recently purchased share certificates that included warrants, I have converted those certificates to actual cash shares and deposited them into my non-registered trading account. My question is this: when, or if the time comes that I am able to exercise those warrants, can I make that purchase from my TFSA trading account, even though the original shares those warrants came with were deposited into a different account? Eg., each warrant allows me to buy one share at .10 while each share certificate trades at $1.00 and I have 10,000 warrants. Can I exercise those 10,000 warrants using cash from my TFSA then place all 10,000 shares into my TFSA (a "transfer in kind" I am assuming)when the value will now be far greater and would far exceed my contribution limit. I am thinking it would be just like purchasing normal shares in my TFSA then they double or triple, if I were to be so lucky, I just don't know how the warrant is viewed by CRA
Read Answer Asked by dennis on March 07, 2017
Q: I want to invest in a new TFSA for a 67 year old female who is starting retirement. They have ample income from various sources so the TFSA is pure growth over 5 to 10 years.

Would you agree to split the 52 k in SIS, SHOP, KXS, GUD, TOY, GSY, BYD.UN & ZCL each at an equal weighting around 12%? In this scenario do you agree with a larger than the traditional 5% weighing per equity? I know your team has endorsed a more concentrated approach at times. Going forward she will add 1 new equity annually at the full $5,500 assuming that continues.

Thanks in advance, very happy with your service!
Greg.
Read Answer Asked by Greg on March 06, 2017
Q: I currently receive an indexed pension which covers my living expenses and related costs. I also have an RRSP and other investments. My question is regarding my TFSA. Regardless of sector allocation what would your top 5 picks be today?
Also at what monetary value would you add additional holdings or would you just rebalance your winners? Example $$50,000 5 stocks, $100,000 8 stocks?
Please deduct as many credits as you see fit.
Read Answer Asked by Marty on March 03, 2017
Q: Hi Peter and team, I'm looking for some input as to where to deploy a recent RRSP contribution. I'm an aggressive investor with a 20+ year time horizon, and I tend to hold a focused portfolio. Currently holding QSR, XTC, PBH, SIS, TD, DH, WSP, CSU, SJ, and ENGH in roughly even allocations. I have broad exposure to US, Canadian, and International markets through my group RRSP at work, so am not overly concerned with diversifying the mix above. What are two or three companies you would suggest adding to the above for a long-term hold in an RRSP? By long-term I mean 5+ years, so the companies would likely be in dominant market positions.

Many thanks,

Alex
Read Answer Asked by Alexander on February 28, 2017
Q: I purchased a half position of OTEX in my TFSA with the intention of holding for the long term. I found out afterward that it pays dividends in US dollars. I don't have a US account and the present price is roughly around what I paid for it. I'm wondering if I should sell and buy a full position in my RRSP account. The cost for 3 transactions would be approx. 30$. Do you think this is a reasonable plan, or should I just stay in the TFSA? Thanks, Paul
Read Answer Asked by Paul on February 27, 2017
Q: Hi 5i team. The bulk of our savings is managed professionally and is balanced and diversified (I hope).My spouse and I manage our own TFSA. We would like the TFSAs to have a high growth potential. Currently my porfolio has 15% cash, 8.14% BAD, 5.82% CGX, 4.52% DRT, 4.89% INP, 6.92% GUD, 4.41% MDA, 5.18% NXPI, 17.53% PPL, 7.14% TC and 18.66% BYD
My husband has 24.35% cash, 9.24% ALA, 6.76% CXI, 20.54% CSU, 8.88% GSY, 18.78% KXS and 10.97% WCN.
We would like to have a balanced asset allocation and still keep it high growth.
Please suggest what we should keep, sell and any buy recommendations.
Please deduct as many credits as appropriate.

Also, could you advise how often I should check on my porfolio and rebalance it?
Read Answer Asked by Teresa on February 23, 2017
Q: Hi,
I'm trying to shuffle a few things around between my margin, RSP, and TFSA accounts and simplify my portfolio. I'm assuming one would want to hold the highest growth stocks in the TFSA because there is no tax.
However, how do you distinguish what should go into which account? For example, among others, I'm holding a bunch of dividend stocks (BPY.UN, BPY, ZWU, VGH, VRE, PPL, AD) and growth stocks (ONEX, XSU, TNC, CXI, SJ) in my RSP. In my TFSA, I also have a mix of dividend and growth stocks, BIP.UN, ZWB, TECK.B, CGX, SHOP, GUD, CRH, HWO. Should I swap some of these stocks between my RSP and TFSA?

My TFSA and RSP are all maxed out and I have been buying a lot of dividend stocks in my margin account lately (CU, XEI, VDY, ENB, WSP, FTS, AQN, PWF, ENF) to take advantage of the dividend tax credit. Is it better to hold dividend growth stocks in your RSP or Margin accounts?

Any examples of what you would do or insight into this would be great! I'm 35 years old and time horizon is 10-20 years (would like an early retirement haha!)

Thanks!
Read Answer Asked by Keith on February 09, 2017
Q: Hi 5i,

My entire portfolio is currently in a TFSA. My holdings and %s are as followed:

Teleco: RCI.B (3.65%)
Material: SJ (1.40%)
Fin'l: BNS (5.37%) SLF (4.64%)
Cons Staple: MRU (1.73%) PBH (2.50%) ATD.B (3.68%)
Cons Cyclical: GSY (5.51%) TOY (3.60%) MG (3.24%)
Tech: SHOP (5.88%) OTC (6.96%) KXS (3.60%) CSU (4.31%)
Ind: CNR (3.98%)
Energy: RRX (3.46%) ENB (4.07%)
Health: GUD (3.66%) SIS (3.63%)
Utilities: FTS (3.68%) BEP.UN (3.52%)
Cash: 18%

Which companies would you suggest I add/buy currently that would make great additions? I am in my 20s and have a long (10+) horizon for investing.

Thank You
Chris
Read Answer Asked by Chris on February 02, 2017
Q: Am considering adding a half position of each to my wife's TFSA. She already owns ALA, BCE, CPG, and RY. What do you think of their future earnings next quarter? Would you suggest another alternative to either one?
Thanks Jack
Read Answer Asked by John on January 27, 2017
Q: Hi Peter + group recently I transferred some WEF stock to both my wife / my own TSFA (out of a cash non- registered account). If I understand the TSFA concept any $ increase in the price of the shares is noon taxable just like any other TSFA deposit. Ort should I have sold the shares outright and then used the $ to but something else ? Thanks for all your ongoing help /advise
Read Answer Asked by Terence on January 26, 2017
Q: I have about 110,000 dollar that I will be investing in your balanced portfolio and the etf ViG. About 45,000 dollars will be in a non registered account and 65,000 in TFSA. I am avoiding RRSP because I have a good pension. My tax person said that I would save tax by putting the non dividend equities to the non=registered account. I plan to leave the investments in for 7-8 year As well will vig be taxed at a higher rate because it is non-Canadian if it is in the non-registered?
Read Answer Asked by Stephen on January 25, 2017
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