skip to content
  1. Home
  2. >
  3. Investment Q&A
You can view 3 more answers this month. Sign up for a free trial for unlimited access.

Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Hi Peter I am confused of a writer yesterday saying he took funds from his RIF and moved them into his TSFA .The CRA rules that have been explained to me rightly or wrongly this is a no can do .Any withdrawals for a RIF or RRSP is a taxable event thus must be transferred in a cash taxable account first and then one can do what he wishes after the CRA rule is complied with.
Am I and the CRA wrong ?
Kind Regards
Stan
Read Answer Asked by Stan on April 06, 2017
Q: A comment rather than a question. What explains the 15% yield? Roughly a quarter of the payout for 2016 consists of a "capital gains dividend," rather than an eligible dividend. The portfolio itself produces dividends of which only a portion is used to cover the dividends of the preferred shares. The class A shares do not pay a dividend if the NAV of the total portfolio falls below $15, which happened in the recent past. However, over 2016 the Canadian and US financial holdings did very wel. The covered call options must have done very well also, but because of that the NAV seriously underperformed straightforward asset growth - compare FTN with ZEB and ZUB over the last year. So FTN's asset growth underperforms under bullish conditions. BTW, at the moment there seems to be a 30% premium on the NAV of FTN.
Read Answer Asked by Kurt W on April 06, 2017
Q: How is it that Quadravest is able to keep generating a 15% annual return on this product. I know they use options to juice the dividend yield they get from the underlying companies. For 18 months from mid 2011 to end 2012 they did not pay a distribution on FTN so there is that risk. It just seems to me that this is one of those situations where it is to good to be true? Am I right to be wary of the product as I don't understand how they can maintain the high yield.

Thanks Kenn
Read Answer Asked by Kenneth on April 05, 2017
Q: CSH has dividends in something called CAPITAL DIVIDENDS. As I understand it, these dividends are not taxable. Does this mean the cost base goes down by this amount, or what? In a related question, is it best to hold CSH in an RSP (where I currently have my units) or in a taxable account. Should I sell CSH in the RSP and buy it back in the taxable account, adding something else into the RSP?
Read Answer Asked by David on April 05, 2017
Q: I currently have ZQQ at a 5% weighting in most of my portfolios and I am considering replacing it with one or two US tech companies. My tech exposure in each portfolio is approximately 20% and I want to maintain that percentage. I have income tax consequences in most portfolios; taking this is account what stocks would you consider to have higher return potential than ZQQ over 5 to 10 years.
Read Answer Asked by stephen on April 05, 2017