Investment Q&A

Q: As a follow up to Kenneth's question today regarding tax gains/losses in different accounts: if the same stock is held in a non-registered cash account and a TFSA account and a stock is sold from the TFSA, are there any implications if the stock is then bought or sold in the non-registered account?

Geoff

Q: Hi Team , I have 10k that I want to invest in a TFSA account, I wont need these funds for 5-10 years, Im thinking of 3 options , invest in your equity model portfolio picking appox 10 stocks with a 10 % weighing, # 2 invest only in ETFS , or # 3 split the 10 k between the 5 banks , BMO, BNS, TD , RBC and NA... does any of these options look good to you? .....or do you recommend an option 4 ???
For option 1 can you recommend some of the stocks to pick ? and also for option 2 can you recommend some ETFS to pick ?

Thanks

Q: I have a relatively well diversified portfolio and would appreciate your perspective on how the top-up contribution of $4,500 to my TFSA might be invested. I'm looking for growth opportunities as opposed to income. Please provide a couple of suitable stocks.

Thank you
Rossana

Q: I just recommended the following to a niece who currently has ALL mutual funds . She wants some growth and income, but probably never wants to look at her investments . As she is likely to continue owning mutual funds, I suggested that she should start a brokerage account and buy the following bit by bit .

1. FINANCIAL BANKS ... BNS, TD or RY
2. FINANCIAL INSURANCE ... SLF or GWO
3. ETFs… XSP, CDZ in Canada , or VGG

What would you suggest ?

Q: Hello gentlemen,

Does it make sense to utilize my tfsa to the maximum allowable contribution amount first before depositing into RRSP? Im thinking yes since we are having to pay tax when we withdraw from RRSP upon retirement.
I look forward to your reply.

Q: Hi Peter.

Came across this useful article on TFSAs. I wasn't aware of the difference between "successor-holder" and "beneficiary" designations and thought other 5i members might find this of interest.

http://www.advisor.ca/tax/tax-news/tfsa-designations-may-cause-estate-planning-problems-183045?utm_source=EmailMarketing&utm_medium=email&utm_campaign=Brokers_Newsletter?utm_medium=Newsletter&utm_source=Personal%20Finance%20Reader&utm_type=text&utm_content=PersonalFinanceReader&utm_campaign=129908129

Cheers,

Scott

Q: My 20 year old son has a question for you as follows:
Hi peter,
I have a tfsa which i am looking to add to. My holdings are the following:
AVO- 10.8%
BNK- 10.1%
ENB- 15.6%
XTC- 15.6%
OTC- 15.4%
PHM- 5.4%
RMP- 7.7%
WIN- 18.8%

I was considering adding BNS & SLF.
OR
I was considering adding a large position in a mutual fund.
Would you please recommend what to add & potentially what i should sell.

Thank you!
Chad

Q: We recently sold a small U.S. property and put the US$ into a US$ TFSA in order to keep US$ available for future travel. My question is regarding the investments - we have most in non-dividend paying U.S. equities/ETF's to avoid the dividend tax issue, but could we purchase CAD dividend paying companies for income in US$ within this plan? Thanks for your always great advice.

Q: Hi,
What stocks would you recommend in a TFSA and in a RRSP today?

Q: Hi Peter/team I would like your opinion on what stocks of your balanced model portfolio is better to have on my TFSA-RRSP and regular account. Thanks.Jim!!!

Q: With selling FM last week at a loss, my TFSA is less than the $41,000.00 I have put into it. I must be doing something wrong. Most of us have 3 Canadian Accounts ... TFSA, RSP, and Regular /( Income in my case ) . How should one approach these regarding 1.risk , 2. dividends , 3. bluechip or other factors ... I think I am doing something wrong. My Regular account is OK, my TFSA is down and my RSP , meantime , is flying high with tech stocks and increasing my future RRIF tax liability . ᴴᴱᴸᴾ

Q: Dear Peter and team:
I know in your recent answer to a question about TFSA, you had suggested a US stock and an ETF (VIG) It is my understanding that US withholding tax applies to TFSA. (not to RRSP.
Therefore wouldn't it be prudent to buy either Canadian stocks in TFSA or pure play growth stocks from the US or Europe or Asia. My question then is this: what are such pure play growth stocks in the US/Rest of the world that I can hold in my TFSA without worrying about withholding tax?
Always appreciate your measured answers.

Q: Good-day!
My niece (33 years old, well paid employment) has about $15K to invest, will add at least $10K every year, has no idea what a dividend is (and doesn’t want to know!), and wants my advice. I am suggesting a TFSA with probably a few ETFs, or possibly a basic 3 or 4 stock “beginner’s” portfolio inside the TFSA. For a long term holding I would appreciate it if you could you provide a few suggestions both from ETFs and a few basic stocks, perhaps with the thought of a minimum of $5K in each, maybe incorporating drip. This would all come with the usual wish list of course of some foreign (US at least) exposure, maybe some dividend income, secure payout ratios, reasonable ROE, and capital security. Not too much to ask, of course! ... and if I do ever spark her interest in the investing melee, then my first advice will be a subscription here!
(This question may have already made it to you earlier this afternoon, but I am unsure after some computer hiccupping after I pushed send)

Q: Hi team,

You indicated that in the TFSA, there will be a 15% withholding tax on dividends. How does that play if it is a mutual fund (in U.S.$) held in the TFSA ? What are the pros and the cons of holding such a mutual fund in a TFSA ?

Thanks a million,

Jacques

Q: Hi Peter and 5i Team,

I am interested in buying KO. I have never purchased American or international stocks, so it is all new to me. Am I better off purchasing it in my TFSA discount brokerage accounts or in my non-registered (regular) discount brokerage account? What are the tax implications for both scenarios?

Thanks for your help,

Terri.

Q: Good afternoon Peter and team,

We are now past the accumulation stage in investing beyond continuing to "fill" our TFSAs. I am thinking that when I do add to our TFSAs, I would buy XIC, so that when we want (or need) to withdraw $ from our equity holdings, we could withdraw from it, thus taking a little bit from a number of stocks with one withdrawal rather than having to worry about balancing the portfolio by figuring out which stocks, and how many, would be best to sell. Is there something I'm missing in my thinking, or would you think this a good idea?

Thank you for your invaluable advice: I've been with you from your inception, and continue to enjoy the site.

Q: I have my next years TFSA cash contribution sitting in a "high" interest savings account but am thinking of parking it in my non registered account and buying and holding a REIT (d.un perhaps?) until Jan 1...which do you recommend or perhaps I should play it safe and go with shares in one of the Canadian banks?

Q: My daughter does not have a pension plan nor will she be making enough money to make an RRSP worthwhile.She has a TFSA but is not that familiar with stocks.She will be invested for at least 25 years. Can you suggest some long term investment companies for her?She already has a dividend fund from RBC that has a lot of financials in it. This money is locked in until she is retired .I've been trying to help her but could use some advice myself.We've been considering Crombie Reit but are worried about rising rates.As always your help is appreciated,

Q: The only holding in my TFSA, to which I have made maximum contributions, is SUMMIT REIT ( SMU.UN). I wanted a high yield growth stock and went with a small cap REIT.
I am going to sell half my holdings and diversify into another sector with a growth stock having a 4% plus yield. Would you have 2-3 suggestions? Thanks

Q: Peter,
`A TFSA just opened
`$21000 maximum allowed and therefore available

1/would you park the money in a high savings account let us say till the fall/early winter and therefore wait for better market500 opportunities.

2/In case you can find solid opportunities now what would you suggest in pure stocks allocation percentage (for example 4 stocks, 8 stocks.. 1 stock?)

3/ Within this split what would you suggest as specific target companies.

Thank you very much