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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: I have owned this fund for a very long time and averaged over 8% return through the time I have owned the fund. The fund has a monthly distribution which is reinvested and additional units distributed annually which are also reinvested, a healthy gain in NAV over the years.I'm now 1% over a full position in the portfolio should I continue to let it run, I have not added a dollar to this fund in 10 years or would you trim back to a 5% postion
Read Answer Asked by Thomas on April 26, 2017
Q: Dear 5i
I am two years away from retirement and currently switching over my portfolio to a self directed acct at Questrade .
I want to be fairly conservative in my portfolio and feel that a 30% Equity 70% Fixed income would be appropriate .
I will be using 5i for stock selection . I`m just uncertain if 70% Fixed income is too much or not considering possible interest rate hikes down the road . Are there other fixed income investments other than Bond ETF`s , GIC`s cash etc . Also with bond etf`s are both interest and yield paid or is it one or the other only ?
Thanks
Bill C.
Read Answer Asked by Bill on April 25, 2017
Q: Good Morning. Further to questions and answers re dividend tax credits and the recent article in the Financial Post, how does income from pensions affect the tax credits? Is pension income considered different from income from a job? I could (and should) experiment in a tax program but wondered if you had a quick answer while the topic is current.

Thanks,
Cathy
Read Answer Asked by Catherine on April 21, 2017
Q: Hi 5i,
A question related to my flow-through partnership units: I purchased in 2016. Some weeks after purchase, the partnership units were listed in my self-directed account, showing an associated value with a footnote indicating that these are not securities that trade on a daily basis. Initially the listed value was around 23 percent below my actual cost of purchase, which I took as mainly an indication of all the fees and management expenses taken out up front. Since then, the account listed unit price has been adjusted every so often (maybe every couple of weeks or monthly). Gradually the unit price has climbed to where the holding is now a couple of percent in the black (relative to my actual cost). My understanding is that I can’t sell the holding until the partnership units roll over into mutual fund units next year sometime. So my question is: in the meantime, what is that partnership unit price showing in my brokerage account based on? Is it actually something like a present market value estimate (just as though it were possible to market the units currently)? If so, are such estimates normally pretty reliable (so that the account listed value from immediately before the roll-over translates reasonably accurately into the value of the resulting mutual fund units – barring some perfectly timed market collapse of course)? Or is it more of an exercise in fiction? Thanks for any help with my understanding on this!
Read Answer Asked by Lance on April 21, 2017
Q: Hi,
I remain somewhat confused about which account it's best to hold Dividend paying stocks in. I've noticed some responses where you indicate it's best to hold the dividend payers in non registered accounts and higher growth stocks (capital gainers) in a registered TFSA or RRSP account.
For whatever reason, I assumed the opposite as I thought receiving dividends was more along the lines of receiving income (i.e.- cash) so it would be best to put these into your registered accounts to lower the tax bill.
So, in my situation, as I receive approx 60k in annual pension income- am I better to put the dividend payers into the registered or non registered accounts to keep the tax bill as low as possible.
Thank you.
Read Answer Asked by Alan on April 21, 2017
Q: Hello

Do you have an opinion on Senvest capital or Sec.

Is it a good buy for valueinvesting and there is a good marge of safety or is it too risky

By the way, dou think you will find a company who will deserve A+ one time or it couldnt happen because the perfectionis not in this world

Thanks and I appreciate your opinions
Thanks
Read Answer Asked by Alexandre on April 21, 2017