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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: Would like to know if I am calculating the amount of the reduction in weighting for a particular position. This is how I do it....I take the current market value of the position, say 7% of the current market value of the portfolio, and deduct the original book, cost value, which is 5% for this position in the total money to be invested in the portfolio, and then sell this difference at market price at that sell date.....Am I doing it right?!
........Tom
Read Answer Asked by Tom on June 05, 2017
Q: There were a couple comments today referring to a stocks yield based on the initial investment (which could 1 year ago or 10 years ago or more). I have seen this come up here before and on investment chat lines I follow. It seems to me that investment decisions should be based on the current situation (current yield, fundamentals, or whatever) and that yield on initial investment is somewhat meaningless other than as a pleasing way to view a successful investment. What am I missing? Could you comment?
Thank-you
Read Answer Asked by grant on June 05, 2017
Q: Hello, as I watched the EFN episode today,I can't help to think how fragile the market really is.With the market just itching for a good correction, do you think it would be wise or prudent to cash up now say 25-35% + and wait for the inevitable to come?
I realize this is timing the market and no one can tell when this will happen,but for the conservative investor who has seen it before,it seems like it's time.
Read Answer Asked by Brad on June 01, 2017
Q: Paying only casual attention to your recommendations I have unrealized capital gains in my account to pay your membership fees for the next 250 years.
Had I been more astute/aggressive this number would be in the thousands.
My questions:
1. When you have cash in your model portfolios do you ever add to existing positions rather than add a new name to the portfolio?
2. Could you add a column to your portfolio summary page that would indicate the month and year that a stock was first included in the portfolio?
Dave
Read Answer Asked by Dave on June 01, 2017
Q: Can you provide some data points around dividend "growers" companies and if not available dividend companies in general. Current P/E forward looking vs. historic average and ranges. Just wanting to get an idea on how much higher than the average these stocks are currently compared to historic levels, how overvalued they "may" be to help assess downside risk. Thanks!
Read Answer Asked by Husseinali on May 31, 2017
Q: Just wanted to say that successor holder for TFSA can only be spouse otherwise has to be beneficiary. Beneficiary will get the money whereas successor holder can merge the TFSA market value into their own TFSA.

Thanks for all your work.

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Q: If I may add my two cents worth to the question from Valdis re RRSP or RFSA, another advantage for the TFSA is estate concerns. When a person passes on, should there be say, $100,000 in an RRSP or RRIF, that RRSP or RRIF will be added to the final net income and therefore, attract a huge bill from the tax man. On the other hand, the TFSA will be passed on to the heirs tax free. In this situation, an individual is better off to convert as much as possible from his/her RRSP/RRIF to the TFSA, depending on the current income tax situation (take every opportunity to do so). The TSFA is, of course, paid with tax paid dollars whereas the RRSP pre-tax dollars.

5i Research Answer:
Good point; thank you. It is best to name a successor holder to facilitate the tax free transfer. Otherwise, income generated post death may be taxable.
Read Answer Asked by Mayur on May 30, 2017
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