Investment Q&A

Q: With all the tariffs bouncing around, I decided to work another year after starting my CPP and OAS. Although I took 30% tax off both, I still got nailed for taxes because I made too much.
I plan to purchase RRSPs to counter this for next year but I just want to make sure I can still buy RRSPs after 65 years of age. Is that correct?
I realize I'll eventually have to move it all into a RIF by 71.

thanks,

Paul

Q: Hi there, if you had to buy 3 Canadian and 3 US stocks today that you feel have multibagger potential, looking out 5 to 10 years, which stocks would they be? Not looking for names that high a decent chance to go to 0 either however!

Q: Peter's comments about RRSPs and RIFs are from an individual taxpayers prospective. If we look at the design and take a country wide perspective it is much different. If we assume the money put into an RRSP and the tax refund earns a return of x% and we can assume the money goes in a Y% tax rate and is taken out of the RRSP/RIF at a Z% tax rate, the end result is that the money is the RRSP/RIF is totally tax FREE as the tax is balanced by the earnings on the tax refund. It does not matter what X, Y and Z are. Note that this is looking at the country as a whole. Some will earn more X and some less but the average of the whole country will be X and the average tax rates will be Y and Z and some will chose to spend their tax refund but eventually the money will end up with someone who invests it. So the entire RRSP program is essentially tax free money for the economy over the programs' life. I've done the numbers back and forth and it always turns out the same way. So if you save the tax refund, invest it, pay tax on it, it will eventually pay the tax on your RRSP withdrawals, "on average".

Q: Hi 5i,
I've just read Thomas's question regarding taxation on RRIF's. He has absolutely identified a serious issue affecting taxpayers and estate planning, which I see often in dealing with estates through my work.
The tax deferment we receive by contributing to RRSP's pays the government off in spades when the day comes that the resulting RRIF (or the RRSP if no RRIF has yet been created) is taxed.
If a spouse dies and his/her spouse is beneficiary of the deceased's RRSP or RRIF there are no tax consequences - a spousal rollover applies, and taxes continue to be deferred. However, when the surviving spouse (legal or common law) dies, the entirety of the RRIF in that person's hands is taxed as income of that deceased person in their year of death. I have seen many cases where the RRIF of a surviving spouse is made up of both his /hers and that of the deceased spouse and is worth in excess of $5M. That is a whole lot of income for an estate to pay tax on at one time. (Because investments held in a RRIF are considered income at the time of death they are not taxed based on capital gain, which would result in less tax being owed - their value at death is deemed to be income.)
I don't believe there is any way around this costly trap except to control taxes while living by taking considerable money out of a large RRIF every year and paying tax on it in affordable chunks. Other than that, surviving children are going to bear the brunt of the tax liability when the estate of their last to die parent pays income tax on whatever is left in the RRIF at the time of death.
If any of your readers have other strategies for reducing tax on large RRIF's I'd sure like to hear them.
Peter

Q: With rich valuations in the market and inflation poised to move higher on tariff deals, what would be your asset mix to preserve capital while seeking a modest total return of around 4%?

Q: When I look at what the insiders are doing on a company which is available on some sites, with the stocks they hold, I see:

Sell post exercise?
Exercise?
Sell;
Award?

Which of these should be concerning? Could you please explain the terminology of the ones above with a question mark.
Thank you.

Q: Hi 5i Team - With gold up substantially the past year or so and now that gold stocks seem to be participating more, I am interested in taking a small position in a few junior exploration companies. I already have two mid tier producers. Are there any exploration companies that that you may be aware of that have reasonable funding and potential for decent discoveries. Past successes of management would also help. Or is there a reputable site or publication that might cover this sort of thing. Thanks.

Q: I was on forums looking at a question about parking US cash. The discussion was between Rob and Jeff dated Feb. 4, 2025. It seemed from my understanding that you can have T Bills that pay about the best rates and at that time it was 5% plus. I have accounts online both US and Canadian. Are these US online accounts set up to buy T Bills like I buy a stock? Thanks so much.

Q: Good morning, In a recent question I inquired about brokers that held U.S. stocks in U.S. funds in a RRIF accounts . I asked this question, as much to my surprise Wealthsimple does not hold U.S. stocks in U.S. funds in a RRIF account. They are held in CAD. I am looking at Qtrade and TD invest for this account. Is there a preference? Open to any ideas. Thank you.

Q: Only Canadian dividend stocks own in non-register account qualify for the Dividend Tax Credit? Am I correct?

Q: Can you please give me your Top 15 dividend stocks that qualify for dividend tax credit.

If possible at least one in each sector

Thanks for your great service

Q: When can we expect the next investing and economic report card and if there was a recent one ,where can we find it?

Q: I have heard some commentators talk about the possibility that the US could institute capital controls. How realistic do you feel this is?

For Canadian investors, how do we protect ourselves against this possibility?

Thank you again for this excellent service.

Q: When you publish your monthly portfolios it would be helpful if you could also publish the end of month dividend yield and price per earnings of the Tsx and S & P 500.
Thank You

Q: Do you think if US tax gets approved then lots of international investors would sell off US dividends stocks or it would impact all the US stocks.

If there is impact do you think international investors would move to CDN or Europe or which markets they would invest.

Thanks for your great service

Q: Dear Peter et al:

It is not Rocket science that Trump's not so cryptic messages on Social Media create wide fluctuations in the market. Today it centered around EU. It could be about Japan tomorrow. Who knows?!

My question is: Are these wild fluctuations in the market caused by retail investors or Institutional investors. In other words, who exhibits "herd behavior", retail or institutional investors?! Do you see any specific pattern, especially in specific sectors?
In one of your recent answers, you had warned to be cautious about Discretionary sector. Hence this question.

Q: Is there a "safe" way for Canadians to invest in Chinese companies either with ADRs or ETFs?

Do you have any specific recommendations?

Q: My total portfolio is diversified between equities and fixed portion. It has mutual funds, etfs, individual stocks, bonds, cash. What are your comments on position sizes for mutual funds, etfs and individual stocks? Thanks in advance for your all your very valuable comments.

Q: Dear 5i
I have considerable cash yet in my portfolio and have been doing some buying of late , easing back into the market .
I feel that the worst is likely over but with Trump and his tariffs how can you know for sure . My one concern still is not ,so much what additional tariffs could be added but what will be the near future effects of the current tariffs that are in place . Even with no additional tariffs the ones currently in place once in effect are likely to cause increased inflation , higher prices , higher unemployment and the potential for perhaps a mild recession . That said , is it wise to be buying a whole lot now and be mostly invested or would it be prudent to be maintaining steady buying , regardless of the potential for the negative consequences of the tariffs once they take effect ?
Thanks
Bill C

Q: For the long term what are your top 4 Canadian picks excluding Tech & commodities?