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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: This is to bring to the attention of those who use TD webroker. The T5008 that was sent by TD to Revenue Canada(RC) reported the full proceed of disposition without subtracting the commission. There are two issues here:
- If you are using the trading summary as an input to your tax program, the net proceed will not match the net proceed that is reported to RC which is particularly important if you have a large number of trade.
- If you are using a tax program with Auto-fill and you don't report the commission as "expenses related to the transaction then you will be paying higher capital gain than you should.
Read Answer Asked by Saad on March 26, 2017
Q: I have been a member for a couple of years and you have been my "go to advisers" .
Thanks to you, I have built this non reg account.
In the non registered account I have the following approximate holdings:
5%--FTS;IPL;H;MFC;SU;STN;PWF;BAM.A;
7%--BEP.UN;CTC.A
13%--CCL.B;ENB

I have $40,000 in cash. Retired with a pension and medium term(hopefully) horizon.
Reading your Q&A, I should rebalance CCL.B and ENB to 5-7%

Additional ideas for the rebalanced cash and the remaining $40 thousand.
Many thanks for the usual, calm, balanced, patient answers.
Paul
Read Answer Asked by Paul on March 24, 2017
Q: I own the following reits (or similar real estate focused equities) in our non-registered portfolio: ap, ax, car, d, fcr, hr, kmp, nwh, hot, cuf, aar, csh, sru, tcn. Collectively they account for close to 16% of the portfolio's value with most being 1% and only hr and ax being around 3% each. My question relates to a concern being expressed in many recent articles about the sensitivity such products have to rising interest rates. I'm wondering whether or not I should, in your opinion, be reducing my exposure here, and if so, by roughly how much and from which holdings. I am in a positive position in all of them with the exception of d, and overall they have been a very helpful part of our investments! As always, thanks for your valued opinion. Don
Read Answer Asked by Donald on March 24, 2017
Q: In the likes of the Buffets, Jobs, Zuckerbergs and Bezoses, which companies in the Canadian markets have leaders or management teams that could be classified as genius or top calibre capital allocators? Goodman at Knight comes to mind. Also, which younger companies have leaders that you see showing early signs of these traits? I would say Shabazi at TIO Networks fit the bill, but he sold out to PayPal. Looking for your list of the best of best; present and future. Thanks.
Read Answer Asked by Curtis on March 24, 2017
Q: Hi 5i,
Through an error(on my part)in transferring a TFSA from an Advisor account to a self directed account, the monies were withdrawn in to a non registered account. I know I need to wait a year to replace the TFSA $ in the self directed. Now that I have the chance, assuming roughly equal amounts, which should go to the TFSA and which should stay in the non registered? I also have about $15,000 cash in each account. After rebalancing, can you suggest two or three more for each account? Long term horizon.
Have a good weekend.
Thanks Paul
Read Answer Asked by Paul on March 24, 2017
Q: Hi Peter and Team,

When we are adding to a position, how much capital should we commit at a time? If the goal is 5% of the total portfolio for a position, and we are say at 2.5%, would it mean buying the remaining 2.5% at that one time? Or would it mean buying as capital becomes available (i.e. buy 0.5% here and there), until the full 5% is reached.

Thanks.
Read Answer Asked by Marvin on March 24, 2017
Q: I have 25 stocks from BE/Growth model portfolio, with thanks from 5I of $130,000. I have SIS, GUD PBH, GSY, KIN,BCE, ECN, FSZ, FTS I recently was gifted from my father's portfolio $100,000 in BAM shares. What is the short term outlook for BAM? Should I sell most now and rediversify or wait? I know I will need to do something with this as 50% of my portfolio now in 1 company is a worry. I don't have any ETF's at the moment.
Thanks for all your advice
Read Answer Asked by Craig on March 24, 2017
Q: Hi,
I'm a 35 year old balanced/growth investor and looking to add some fixed income to my portfolio. I have mostly dividend and growth stocks in our portfolios and looking to balance our asset allocation. Currently I manage my margin, RSP and TFSA as well as my wife's.

In my margin, I'm holding some good dividend names, for the div tax credit - FTS, BCE, ENB, CU, TRP, AQN, ALA, EIF, CGX, ENF, ECI, WSP, SPB, PWF, AW/un.TO, SLF, ZDV, VDY, XEI. I contribute weekly to my margin and have been regularly adding to ZDV, VDY, and XEI (questrade allows free ETF purchases which is nice). Do you think holding ZDV, VDY, and XEI is necessary or should I consolidate them? The MER's and sector weights are slightly different in each ETF. These ETFs are my biggest holdings in my margin and I know holding ETF's come with a MER cost, so I have added some of those other mentioned individual names. Is this too much overlap and should I be adding to more growth names vs dividend names?

Between both of our TFSA's, we have many growth names that you always mention - CRH, TOY, ITC, KXS, SHOP, SIS, GUD, CCL.B etc, which I think is setup fine.

In our RSPs, we have more balanced steady growth names such as VEE, ZLH, ZRE, ZWU, ZLB, VGH, VRE, ZWH, XEF, ZUH, ZWA, VUS, VGH, ATD.B, MTY, CXI, PPL, AD, GIB.A, FRU, L, BIP.UN, BPY.UN, NFI, BEP.UN, BAM.A, FIH.U, SJ, T. Do you think there is too much overlap here holding the ETF's and its better to sell some and buy individual names? Also if adding some fixed income ETF's, which names above would you swap out and add for a 15-20 year hold for safety, income and some growth (which I would like to add to my RSP for tax efficiency)?

Thanks!
Read Answer Asked by Keith on March 23, 2017
Q: Can you please explain he correlation between bonds, stocks, reits and gold?

id like 30% of my portfolio to move differently than the markets in case of market correction but dont want it all in bond funds due to rising interest rates. how would something like this look over the long term or do you have a better suggestion?

10% bond fund
10% REITs
10% Gold half xgd, half bullion
70% equities (CND, US and ITL)
Read Answer Asked by Carla on March 23, 2017