Investment Q&A

Q: Hi Peter...I am 69 years old. My thoughts on my RIF withdrawal strategy are to first take out any cash collected from the dividend paying companies which get me to about 50% of the minimum withdrawal. The next step would be to transfer out Canadian or US capital appreciation companies into our margin accounts. I realize it could be argued it is best to shelter capital appreciation companies inside the RIF as long as possible so an alternative approach would be to take out Canadian dividend paying companies (like BNS or TD) first. However in the end it might be preferable to work down the RIF size to reduce a sizeable tax hit upon death. In spite of 2020 withdrawals and market gyrations my RIF grew by 11% over the year.
I suppose if the RIF is to go to charity upon my or my spouse's death it is best to maximize the RIF. Only take out enough money to keep CRA happy and suit one's lifestyle.
I know you are just a youngster (!) but any thoughts you have on this "ageing" topic would be appreciated.
Regards,
Jim

Q: I own shares of China Mobile in my RRIF--what should I do with them?
Lloyd

Q: Thanks for the January 5th guidance on US stocks for TFSA.
I like your "growth stocks with at least some degree of stability" suggestions as it fits my risk/reward mental framework. 
One stock I was thinking about was SQ.  But with its volatility as measured by beta being 2.33, I'm now thinking of putting it on hold as a transfer from a trading account to the TFSA or might just do 50% of the number of shares.
Besides beta, is there a way I could also assess or calculate US stocks with steady growth that for me is relatively easy to do?
 Continuous learner via 5iR....Yahoo!.....Thanks....Tom

Q: Hi team - what do you think are the biggest advantages/strategies that individual DIY investors can use compared to the larger institutional investors? For example, I would imagine companies traded on the TSXV aren't followed as closely by the larger funds (I believe I read that here). Thanks in advance

Q: Hi 5i,
I have trouble making good decisions about when to sell, both when a stock has risen and when one has fallen. I've found myself selling winners too soon (which at least only leads to loss of opportunity, not actual loss) and holding on to falling stocks too long which ultimately leads to both loss of opportunity because the money is not better deployed elsewhere as well as to eventual actual loss.
I have a general question and also specific questions related to this conundrum - please deduct points as you see fit.
Can you suggest 'rules' or at least guidelines that I can incorporate into my investing methodology regarding when to sell which, although they likely won't work perfectly in every instance will, if applied consistently over time, help me to make better decisions about when to sell?
And specifically: I've done well with DCBO but can't confidently determine whether I should hold longer or take my profits and look to use the cash elsewhere. In discussions about LSPD for example, your view seems to be that it has lots of runway left and continuing to hold could well be worthwhile. I haven't heard that about DCBO though, and can't confidently determine if its future prospects realistically support continuing to hold rather than cashing in at its current high levels.
Which brings me to the opposite scenario involving AT, which I bought recently in my TFSA only to see it nosedive almost immediately afterwards. I'm down 22% in the space of a week and for the life of me don't know whether I should bail now and cut potential future losses, or hold on hoping for an increase to at least near where I bought - $16.65 .
Your advice regarding the above specific scenarios would be greatly appreciated - and maybe if there are worthwhile general rules or guidelines for when to sell you could also explain how you'd apply them to the 2 opposing scenarios I've described as I'm sure that would help me going forward.
Thanks a ton for your anticipated help in dealing with this issue that vexes me greatly!
Peter

Q: Hi 5i team, I would like to convert $6000 Canadian to US dollars in a tfsa at Qtrade using Norbert’s Gambit. Is this a good strategy? Is there a preferred holding for this strategy like DLR? Are there any pitfalls to watch for? Thank you for your help!

Q: Can you withdraw us$ from rrsp into tfsa without currency change into Can$? Thanks rose

Q: Can you please give me the 2020 Percent increases for the TSX, Dow and Nasdaq. I have searched different sites and I get a variety of answers. Bloomberg results are TSX 5.63, Dow 9.32% and Nasdaq 44.27%. Do you agree with these numbers and if not please set me straight. Thank you.

Q: does the motley fool research make sense

Q: I know you are not big fans of short etf's but what in your opinion are the best un-leveraged managed and unleveraged index short etf's ? Should an investor be concerned if the etf is using derivatives ?

Q: Review your employees
Last year was very revealing because it tested the mettle of everyone, including advisers, investment managers and discount brokers. This makes January 2021 a particularly good time to sit back and assess the investment professionals you work with.

Here are some questions you should think about:

How prompt and effective was the service?
How transparent were they about long-term returns and fees?
Was the investment advice timely and useful?
Are their strengths your weaknesses?
Do I trust them to put my interests first?If the answers to these questions are unsatisfactory, then it’s time for a change. If you’re supposed to hear from your adviser regularly (and are paying fees for it,) but didn’t get a call in the first half of 2020, or the whole year for that matter, then you’ve got grounds for divorce.
Peter; With thanks to Tom Bradley - the above questions could all be answered positively by 5i members. Thanks again- we won't be getting divorced !!
Publish if you wish,
Rod

Q: Hello, I presently have US stocks invested in a Cdn non registered account. Seems to me I am at the mercy of the rate of exchange.
How do I correct this? What do you suggest?
What about US stocks in a TFSA?
Thank you for your time.

Q: Hi,

The last answer on GC wrt holding or selling was "We would suggest keeping this at least into the new year, as a relatively low risk cash proxy. If in a gain position this will also defer taxes a year. "
I had accumulated 2800 shares over the last several years which today equates to $121,800 @ a current stock price of $43.50. A gain of approx. 6% in an RRSP account.
Given the buyout transaction will not officially close until Q2 (when in Q2 I am not sure, do you know the specific date?), at max I can only make another 3.3% (another $1.50/share), ie at buy out price of $45.00 it equates to $126,000, assuming nothing changes wrt another bid. I assume Brookfield will not counter-offer?
If I hold until Q2 and accept the $45/share, this money is basically not working for me for another 3-6 months! Does it not make more sense to sell at the current market price (at a reduced offering price) and purchase some of your more recent top recommendations/suggestions?
This may sound like FOMO but is it not better to have your invested money working for you?

Cheers,
Steve

Q: If a Canadian Cie does most of its business (like AQN,etc..)in the USA,or even a smaller part of its business in the USA ,does this impacts the "tax avantages" on dividends (tax crédit),and if this were the case,is it in proportion of CDN vs US revenues ? Thanks ,I wish you all a wonderful new year

Q: Do you subscribe to the theory that it is good to wait for lockup periods to pass before buying shares in a new public company? I’ve listed a few newer stocks - do you happen to have the lockup period dates for these? Any other notable ones?

Q: I purchased some of these warrants a few weeks ago. They are convertible at $11.50/share.
I can't find if there is an expiration date for conversion anywhere. Do you know if there is and/or when the expiry date is?
While on this subject can you direct me to any public databases that list warrants and convertible debentures?

Q: I would feel remiss to let the year go by without expressing a heartfelt thank you for the service that you provide! Your steady hand and the knowledge that you share has helped us to achieve unbelievable financial returns in this crazy year. All the best in the New Year.

Janet

Q: The TSX total return is now positive for the year. I would like to better understand whether the market breadth for the index is quite narrow, and whether the TSX returns are based on exceptional performance for a few stocks only, such as Shopify.

Are you aware of any site which provides details about how each stock has contributed to the overall return of indexes, such as the TSX? I would like to understand how many (and which) stocks are up, and how many are down, over the last year.

Many thanks for your assistance. Best wishes to you and to your team for a very Happy Holidays and a prosperous New Year!

Q: Purchased Denison Mines about 10 years ago @ $3.62 and have been hopefully awaiting the return of uranium prices since. The stock price was up about 12% today to $.91 after being into the low teens earlier this year.
Would you take the money and invest in something with more potential or
continue to wait for further positive moves in uranium?
My financial consultant suggested the purchase of BMO Auto-Callable
Notes for my RIFF and after a brief review I ok'd the purchase. Subsequently I read an article totally against such an investment. Definitely to late to cancel without substantial costs. However, what are your thoughts on this particular type of investment ( possibly your answer would be of interest to my fellow subscribers)! I should add that I am in my early 80's and have requested minimum risk investment for my riff.

Q: Will I get the dividend if I sell my position on Dec 30, the ex dividend date?
Thanks