Q: ARE DIV. & CAP GAINS NOT TAXED ON BOTH THESE ACTS
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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 company has announced an employee share offer plan. I would like your opinion on the pros and cons of employee share offer plans in general, and specifically on the plan being offered to me.
I work for a large European company (20B euro market cap; 65,000 employees in 50 countries), and the stock trades in Europe. This is not a small start-up company.
The key terms of the offer are: (a) 20% discount on the share price, (b) 1 free share for every 4 shares subscribed up to 10 matching shares, (c) account management fees paid by the company, (d) investment locked-in for 5 years (to Dec 2022) (except in the case of early redemption). I really don’t like being locked in for 5 years, but I guess that is the price to pay for a 20% discount.
I have been burned before on an employee share offer program (dot com era), so am always questioning why companies ask employees for help. The employer always promotes how good it is for employees (e.g. 20% discount), but what is in it for the company? If the company needs to raise money why not just go to the stock market? I don’t buy the pride of ownership in the company you work for, blah, blah, at least not with a very large company (I am one of 65,000 employees).
I am skeptical when employers tell employees how great something is for them. Been burned before 15 years ago when they told us how great it is for us to switch from a DB pension plan to a DC pension plan. They neglected to tell us how much better it is for them if we switched from the DBPP to the DCPP.
p.s. Maybe one day you can do a blog on pros and cons of employee share offers, and what an employee should look out for.
I work for a large European company (20B euro market cap; 65,000 employees in 50 countries), and the stock trades in Europe. This is not a small start-up company.
The key terms of the offer are: (a) 20% discount on the share price, (b) 1 free share for every 4 shares subscribed up to 10 matching shares, (c) account management fees paid by the company, (d) investment locked-in for 5 years (to Dec 2022) (except in the case of early redemption). I really don’t like being locked in for 5 years, but I guess that is the price to pay for a 20% discount.
I have been burned before on an employee share offer program (dot com era), so am always questioning why companies ask employees for help. The employer always promotes how good it is for employees (e.g. 20% discount), but what is in it for the company? If the company needs to raise money why not just go to the stock market? I don’t buy the pride of ownership in the company you work for, blah, blah, at least not with a very large company (I am one of 65,000 employees).
I am skeptical when employers tell employees how great something is for them. Been burned before 15 years ago when they told us how great it is for us to switch from a DB pension plan to a DC pension plan. They neglected to tell us how much better it is for them if we switched from the DBPP to the DCPP.
p.s. Maybe one day you can do a blog on pros and cons of employee share offers, and what an employee should look out for.
Q: Hi ,Earning growth is one of the many factors leading to price going up. Will you please list 10 companies with high earning growth with moderate to low risk for the next few years. Your wisdom is mostly appreciate. Is there a web site that have such information ?
Q: i really like the Cdn focused 5iR portfolios. In the past there was talk of a US equity portfolio. Wondering...it is going to happen? and what is the likelihood before this coming year end?...Just had to ask, eh?!......Tom
Q: Could you organize the post in the forums so that the most current ones are on top? Its a drag to scroll down to see the most recent posts and almost every forum I have seen is set up that way.
Q: Hi all at 5I,
As a young 20 year old looking for growth, I dont mind some volatility but really just looking for a balanced portfolio what would be your top 10 stocks to invest in a 5 year time frame? If you could provide some bullet points on which ones and why. Please feel free to take more than one question credit from my account.
Thanks,
Dan
As a young 20 year old looking for growth, I dont mind some volatility but really just looking for a balanced portfolio what would be your top 10 stocks to invest in a 5 year time frame? If you could provide some bullet points on which ones and why. Please feel free to take more than one question credit from my account.
Thanks,
Dan
Q: This is a recently released security that seems to have some good prospects over the next 5 years,with some good potential returns and some protection .Can you explain how this works ?
Than you,
Philip
Than you,
Philip
Q: Good morning Peter and team,
In the 10th anniversary edition of his book The Little Book of Common Sense Investing John Bogle states:
"My own total portfolio holds about 50/50 indexed stocks and bonds, largely indexed short- and intermediate-term."
Warren Buffett famously wants a 90/10 indexed stocks/government bonds mix for the trust fund he is leaving to his wife.
Given that interest rates will certainly go up from today's levels which will drive bond values down, wouldn't an investor be better off holding cash instead of bonds, cash drag notwithstanding?
Thank you.
Milan
In the 10th anniversary edition of his book The Little Book of Common Sense Investing John Bogle states:
"My own total portfolio holds about 50/50 indexed stocks and bonds, largely indexed short- and intermediate-term."
Warren Buffett famously wants a 90/10 indexed stocks/government bonds mix for the trust fund he is leaving to his wife.
Given that interest rates will certainly go up from today's levels which will drive bond values down, wouldn't an investor be better off holding cash instead of bonds, cash drag notwithstanding?
Thank you.
Milan
Q: hello 5i:
referencing "Dennis'" question of October 20th, BNS AT1 hybrid security.
Can you expand on the answer? I'm having a great deal of trouble trying to find out EXACTLY what this is. And, if the statement, this debt is cheaper for the bank (Hymas), then won't all banks be doing this? Or, what about non-banks? And what effect do you see this having on the preferred market? Would this increase the yield of new prefs being offered, as older prefs will be seen as less attractive? Many questions here, but as I said, I am having trouble finding answers anywhere else, not subscribing to Hymas as there maybe answers there.
thanks
Paul
referencing "Dennis'" question of October 20th, BNS AT1 hybrid security.
Can you expand on the answer? I'm having a great deal of trouble trying to find out EXACTLY what this is. And, if the statement, this debt is cheaper for the bank (Hymas), then won't all banks be doing this? Or, what about non-banks? And what effect do you see this having on the preferred market? Would this increase the yield of new prefs being offered, as older prefs will be seen as less attractive? Many questions here, but as I said, I am having trouble finding answers anywhere else, not subscribing to Hymas as there maybe answers there.
thanks
Paul
Q: Peter and team:
I read a question from someone this morning about a TFSA for their 18 yr. old daughter. I had just been thinking about this prior to turning on the computer. I too am in the same position. I had been thinking RRSP. Which vehicle (RRSP vs. TFSA) do you feel is best for a young investor to start with? Also, for an RRSP, what would you think of a low MER high quality Mutual Fund such as MAW 104.
Thanks as always for a great service.
Phil
I read a question from someone this morning about a TFSA for their 18 yr. old daughter. I had just been thinking about this prior to turning on the computer. I too am in the same position. I had been thinking RRSP. Which vehicle (RRSP vs. TFSA) do you feel is best for a young investor to start with? Also, for an RRSP, what would you think of a low MER high quality Mutual Fund such as MAW 104.
Thanks as always for a great service.
Phil
Q: Hi All at 5i! Have you heard of the Us based, work space company called WeWork? It bought space from Hudson Bay's holding , Lord and Taylor's . Does it trade on the Us stock exchange and do you have any opinion on it ? Cheers, Tamara
Q: Somehow I seem to be quite far behind in learning which portfolio stocks you sell and why you sell them. Am I missing something somewhere?
thanks for your answer.
thanks for your answer.
Q: I don't use the site much. Do you have a section that shows your latest recommendations? ie a newly recommended paying stock
Q: Hello,
I would like your opinion on this. Do you feel it is important to try and keep a certain number of stocks in your portfolio, based on the size of it of course. If you do, could you advise what "approximate number" you would have for each of following sizes of portfolios to give me a sense of how you would handle this:
-$100,000 portfolio
-$500,000 portfolio
-$1,000,000. portfolio
-$1,500,000. portfolio
Thank you
Margaret
I would like your opinion on this. Do you feel it is important to try and keep a certain number of stocks in your portfolio, based on the size of it of course. If you do, could you advise what "approximate number" you would have for each of following sizes of portfolios to give me a sense of how you would handle this:
-$100,000 portfolio
-$500,000 portfolio
-$1,000,000. portfolio
-$1,500,000. portfolio
Thank you
Margaret
Q: Hi 5i, do you know why TMX web site charting has changed, what is the designation of "APH" (ex.BCE:aph). Is it temporary? As well, the last date to buy additional time in 5i and the price. I would also appreciate your suggestion of 2-3 min. rate reset preferred, perhaps a web site to find or research . Many thanks, J.A.P. Burlington
Q: Occasionally you receive questions asking your thoughts on stock evaluation software. I am wondering if you have any thoughts on the stock analyzing software that VectorVest offers. At Toronto’s September Money Show VectorVest’s presentation drew a lot of interest. Thanks … Cal
Q: If the US dollar loses its status as reserve currency, could the US economy slip into a pattern similar to what we witnessed in Japan in the 90's? Is stagflation a possible outcome? Your work is greatly appreciated. Gaston
Q: I seem to have a ...bad... habit of selling my winners and keeping my losers, especially Cdn resource co's, waiting for them to turn around.
Forest Co's under perform, constantly under U.S tariff threat.
Gold Co's and base metals ...who knows where commodity prices will go ?
Oil and gas ...Regulatory and fed govt is a disaster compared to U.S investment climate.
Are Cdn resource Co's only for stock pickers and short term traders in todays economic climate ?
Forest Co's under perform, constantly under U.S tariff threat.
Gold Co's and base metals ...who knows where commodity prices will go ?
Oil and gas ...Regulatory and fed govt is a disaster compared to U.S investment climate.
Are Cdn resource Co's only for stock pickers and short term traders in todays economic climate ?
Q: My daughter just turned 18 and we plan on opening up a TFSA starting with $2,000 and monthly investment of $200. What would you recommend ETF, Mutual Fund of stock? Thanks
Q: I am approaching my TFSA contribution limit and have opened a cash account. I'd appreciate your advice on how I should allocate stocks between the two accounts.
Currently my account consists primarily of micro/small/mid cap growth stocks and high dividend stocks. I am planning on adding some high dividend etfs.
I'd like to separate high growth stocks from dividend stocks/etfs.
My initial thought is to use my TFSA as a tax free income generator with the dividend stocks/etfs. As these stocks produce somewhat guaranteed gains I will definitely be utilizing the tax free incentive of the account.
While having my riskier growth stocks in a cash account where I am more likely to incur loses and can take advantage of tax loss rules. Also, if Im lucky enough to have a multi bagged I hope I wouldn't be too upset paying a bit of tax on the gain.
Does that make sense? Would you suggest otherwise and if so why?
Thanks
Currently my account consists primarily of micro/small/mid cap growth stocks and high dividend stocks. I am planning on adding some high dividend etfs.
I'd like to separate high growth stocks from dividend stocks/etfs.
My initial thought is to use my TFSA as a tax free income generator with the dividend stocks/etfs. As these stocks produce somewhat guaranteed gains I will definitely be utilizing the tax free incentive of the account.
While having my riskier growth stocks in a cash account where I am more likely to incur loses and can take advantage of tax loss rules. Also, if Im lucky enough to have a multi bagged I hope I wouldn't be too upset paying a bit of tax on the gain.
Does that make sense? Would you suggest otherwise and if so why?
Thanks