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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: Currently we have 2 TFSA's which I am trying to design for maximum growth. The holdings are as follows:
1-ZLB,HXS,GUD,OTEX,PTG,SIS
2-ZLB,HXS,ITC,KXS,SHOP,TOY.

Please suggest on both of the portfolios (treating them as one) which stocks should be sold, and what should be purchased to replace them. I want the TFSA to act as the supercharger to my overall holdings.

Thanks and Happy New Year.

Sheldon
Read Answer Asked by Sheldon on January 03, 2018
Q: I'm worried that there will be a severe market crash in 2018, and therefore I think I should hold a high proportion of cash (35%, perhaps as much as 50%) in my investments. Do you agree that this is a reasonable thing to worry about in today's environment? Can you recommend a good, safe place to keep lots of cash, where it will earn at least a little something?
Read Answer Asked by Jack on January 02, 2018
Q: 1) Even Stephen Poloz, Governor of the Bank of Canada, has set aside the issue of NAFTA claiming there remains uncertainty until he knows more about the nature of the risk, he will not focus of that topic. The much greater risk to Canada will be the US Tax Reform. Will Canadians also shift business to the States because it will save 50% in taxes. So, the tax reform is a far bigger issue than NAFTA. How would a Canadian company's move to the US affect me as a shareholder?

2) It appears the flight from income taxed states, especially California, to Texas and Florida particularly, will continue. Seven U.S. states currently don’t have an income tax: Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming. Residents of New Hampshire and Tennessee also, though they may pay tax on dividends and income from investments. I understand that four states, Minnesota, Alaska, Connecticut, and New Jersey, and the District of Columbia levy corporate income tax rates of 9% or higher. These are the States that may see the withdraw of many corporate headquarters. Six states, North Carolina, North Dakota, Colorado, Mississippi, South Carolina, and Utah, have top rates at or below 5%. Is there any benefit long term to investing in companies headquartered in non taxed States?
Read Answer Asked by LARRY on December 29, 2017
Q: Hello Team,

I know you guys don't advise on tax questions but as simple as this one is no one seems to give me a straightforward answer. So, I hope you can help. Which of the following is right regarding RRSP contribution year for 2017:
1- 01 January 2017 to 28 February 2018 (14 months)
2- 01 March 2017 to 28 February 2018 (12 months)

According to an HR Block agent, it is option 1. According to a CRA agent it is option 2. I appreciate it if you are able to support your answer with a website reference from CRA?

Merry Christmas and Happy 2018!
Read Answer Asked by Saeed on December 27, 2017
Q: First of all Merry Christmas and Happy New Year to the 5i team and all my fellow subscribers.

My question relates to where should I invest (RRSP vs TFSA vs Non Registered).

I am 53 yrs old and plan to retire in the next 12 yrs. My current investment portfolio is virtually 100% in RRSPs. My goal is to build a strong dividend portfolio of Canadian stocks coupled with an International and Bond ETF. My question is where should I keep my investments? RRSP? TFSA? or Non Registered?

I am entering my peak earning years and feel that I can retire comfortably on approx. 70% of my current income. I see potential benefits in all 3 but not sure where I should keep my investments. I will likely be at a lower tax rate than I am now than when I am ready to withdrawal from my RRSP. However, who knows what will happen with tax rates. As well, income from my RRSP (but not my TFSA) would impact my OAS clawback.

Any suggestions would be greatly appreciated.
Read Answer Asked by Nick on December 27, 2017
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