Investment Q&A

Q: My question is about year end taxes for capital gains or losses. If I sell a stock on say Dec 28, is it considered a gain/loss for the 2016 tax year or 2017 tax year? The "settlement date" always appears to be three trading days after the sale date. I am guessing the "settlement date" is the date that is used for tax gains/losses - is that correct? Is there a specific date in 2016 when the gains/losses are considered to be in 2017 - Dec 28?

Q: I heard on BNN that one way to find out if stocks are overbought is to look if 80% of companies in an exchange are trading above 50 day moving average. I would appreciate if you can provide your thoughts about this and if it does work, where can I find this information.
Thanks and have happy holidays.

Q: Hi guys,

My wife is finally getting around to diversifying her portfolio and still has to high a weighting at 18.9% in Energy. Her holdings are CPG 4.89%, SPE 3.89%, TOU 2.78%, and WCP 7.34%. She also has 11.01% of her portfolio in PPL.

What do you think she should hold, trim or modify?

Thanks and Happy Holidays

Q: I purchased BMO & CM when the yields were well over 5.5%. I also own & would like to continue to own BAC & MFC. Financials make up 25% of my portfolio now. I would like to sell CM & BMO. Are there any higher yielding dividend stocks in other sectors out there yielding over 5% that may be "mispriced" similar to how CM was back in 2009/2010?
Thank you

Q: Comments Please

Q: When the conversation turns to money, stocks, real estate sales, inheritances, retirement ,funds, etf's etc., a moderately informed person is invariably asked questions about where would "you" put a large sum such as.. $250,000 and leave it safely parked for the long term and also generate monthly income above bank rates? What do you simply and safely tell your father, uncle, friend, etal? Thank you.

Q: Hi there, thank you for a great year of service! In the new year I will be rebalancing my portfolio, shifting positions to 4% in each of the Balanced Equity names. This will leave me with 8% left in cash and room for 2 names to make a 25 name portfolio. Which 2 names would you add for balance and growth? I am in my early 30's and have a long term outlook. Thanks again!

Q: Are REITs a good investment right now? (If so, which is your favorite?)

Q: what percentage would you be comfortable today investing in the energy sector? If I own SU, RRX AND PKI and it is about 13% of total portfolio is this too much?
Thanks
D

Q: IN YOUR INCOME PORTFOLIO YOU HAVE CPD,CVD,XHY AND THEy ALL HAS LOST MONEY ( - 20%, -4% AND -10%.).Does it make sense to get rid of them?Why have any bond at all?Thanks and season greeting to all.ebrahim

Q: Peter and staff
A great number of my stock picks are based around your assessment of the company and I thank you for all this good advice
In your 3 portfolios 10 of the holdings are down 10% or more for this year.
My risk tolerance red light snaps on when when a stock is down 10% or goes below the 40 DMA.I do look at some factors for the reason but maybe not the right ones.Many times I have sold only to see the holding come back and continue to grow.
What criteria do you use to continue to hold a stock even when you are down a fairly significant amount?
Thanks and have a great holiday and 2017.

Q: Hi Peter and Ryan, I'm just making sure I understand the withdrawal rules correctly in dealing with TFSA accounts. I have some cash accumulated from the payments of dividends during the last few months in my TFSA. Am I allowed to withdraw say $2,000.00 in cash from my TFSA account in the next few days (before December 31). Then after Jan 1st, 2017, does my new limit for 2017 become $7,500.00? If so can I transfer (in kind) shares from a cash account worth $7,500.00 into my TFSA without issues? Thank you so much for all you do and all the best in the new year. Mario.

Q: A member wrote: "The CHIP was at 4.74 at the time (I can't remember where I got that number but it was accurate) and assuming interest rate increases, after 10 years, the CHIP had grown from an original $44,000 to $289,326." I don't have my scientific calculator, but this seems most unlikely. Under the rule of 72, even with a 8 percent interest rate, it would take nine years to double the amount, not a 16 time increase, as is claimed here for 4.4 per cent. Where did I go wrong?

Q: Im a 74 year old male in reasonably good health, my RRIF minimum withdrawal is about $26,000 per year. I want to keep 4 years, about $100,000 risk free as in GIC's where could i invest the other $360,000
so i can make a reasonable 5% return.

Q: I occasionally see a reference or a prediction in the financial press to "it would boost S&P earnings by US$10". Since I'm pretty sure that both S&P as a company, and the companies in their indexes, all earn much more than $10, what are these authors telling me? Thanks! James

Q: H i Team, I have google alerts set up to send me emails pointing me to news stories, reports, releases, etc. regarding the various companies that I want to follow. More and more, I am finding, almost all of the alerts I get are links to reports churned out by robots (ie. wall street confidential) that really don't seem to provide the insight that real analysts and reporters can provide. My question is weather you or perhaps any other subscribers know of a way to filter out the robot links while still receiving company stories, news, reports etc. that real people (all be it potentially biased) wrote. One thing that I can count on every day is excellent, non biased answers to questions penned by all of the real caring folks at 5i!! Thank you!
John

Q: In response to a question about reverse mortgages from Deborah, I recently worked out a spreadsheet comparing a reverse mortgage (CHIP) with a secured line of credit. The CHIP was at 4.74 at the time (I can't remember where I got that number but it was accurate) and assuming interest rate increases, after 10 years, the CHIP had grown from an original $44,000 to $289,326. The LOC at a current 2.94%, grew to $176,500 a difference of well over $100,000. CHIPs do offer a good product but it's not the only one and they are expensive. Many seniors (me included) find themselves with a pretty good net worth but with a problematic cash flow so Deborah's question is appropriate.
Both scenarios on my spreadsheet included a $1200 monthly income. I am also aware that my calculations are approximate. An actual program could work out interest calculations more accurately depending on how they are applied but that would weight even more in a secured line-of-credit's favour I would think.both scenarios on my spreadsheet included a $1200 monthly income. Sorry about that. I am also aware that my calculations are approximate. An actual program could work out interest calculations more accurately depending on how they are applied but that would weight even more in a secured line-of-credit's favour I would think.

Q: Overnight it would appear that this fund has lost 7.73% of its value.
Would this be as a result of a special dividend paid but not credited or has its net asset value dropped significantly and abruptly?
Dave

Q: Hi. I love the information you guys give. This might be out of your expertise but I have been trying to get the scoop on these reverse mortgage es I see advertised. No one seems to post the costs and no double the traps involved. Do you know where such information can be found.Thanks and Merry Christmas. Debbie Hendriks

Q: I am doing some sector adjustment in my portfolio and would appreciate your input. I have 5 REITS (ap.un, fcr, sru.un, nhw.un and car.un) but only 1 utility (BEP.UN). I am considering selling First Capital (FCR) and buying either Algonquin Power (AQN) or Altagas (ALA). I am looking for income with enough potential growth to compensate for any cost-of-living increase. Do you agree with my choices? If not, could you propose alternatives. Thanks, as always.