Q: Fellow 5i members: i'm interested in reading about your best allocation of capital (other than stock purchases) which has created value in your life beyond your investment account. After all, bettering our life quality is why we began investing in the first place. I've just created a thread under Forums..Non-investment topics. I titled it 'Best Spending ideas 2024'. I believe that our large community of prosperous and like-minded people has alot of good ideas to share. I've shared a few of my best allocations of capital in the thread. I invite you to spend a few minutes sharing and lets get the conversation started so we can learn from one another.
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: Dear Peter
1) is there a CDIC insurance limit of US$ 100K for US denominated accounts, or is it CAD$ 100K for US denominated accounts?
2) we have US$ and CAD$ denominated TFSAs with account numbers having the same first 6 alphanumerics and the last alphanumeric being different. For CDIC cover, would these US$ and CAD$ TSFA's count as one account or two accounts?
3) We bank at one of the largest banks in Canada and we have two investment accounts which are 5 times bigger than CDIC insurance cover. We wonder what other investors do in such situations -- do they open more investment accounts at other institutions in order to get the CDIC cover? Do they just stay with their current broker to keep their investment tracking simpler?
We'd appreciate your comments on: a) options and, b) what most investors try to do, if anything.
Happy New Year. Many thanks for your usual sound advice.
Hi again Peter - re my earlier questions about CDIC insurance, i have found out that usd is a covered currency, in fact the CDIC website says foreign currency which captures a lot. I've asked TD whether our non-registered USD and CAD accounts are insured separately for $100k each or are insured as 1 account - still waiting. And re the ability to better CDIC insurance with more accounts for our fixed income, i'm still interested to know of any innovative approaches you may have seen. Many thanks.
1) is there a CDIC insurance limit of US$ 100K for US denominated accounts, or is it CAD$ 100K for US denominated accounts?
2) we have US$ and CAD$ denominated TFSAs with account numbers having the same first 6 alphanumerics and the last alphanumeric being different. For CDIC cover, would these US$ and CAD$ TSFA's count as one account or two accounts?
3) We bank at one of the largest banks in Canada and we have two investment accounts which are 5 times bigger than CDIC insurance cover. We wonder what other investors do in such situations -- do they open more investment accounts at other institutions in order to get the CDIC cover? Do they just stay with their current broker to keep their investment tracking simpler?
We'd appreciate your comments on: a) options and, b) what most investors try to do, if anything.
Happy New Year. Many thanks for your usual sound advice.
Hi again Peter - re my earlier questions about CDIC insurance, i have found out that usd is a covered currency, in fact the CDIC website says foreign currency which captures a lot. I've asked TD whether our non-registered USD and CAD accounts are insured separately for $100k each or are insured as 1 account - still waiting. And re the ability to better CDIC insurance with more accounts for our fixed income, i'm still interested to know of any innovative approaches you may have seen. Many thanks.
Q: With all the continued unrest and conflict is there any compelling investment case for military or armament stocks?
Thank you
Thank you
Q: if you had a considerable amount of cash to invest now, would you invest it all or would you take a staggered approach considering the run up we have just had? if staggered, over how many months would you invest it?
thanks and happy new year
thanks and happy new year
Q: I previously asked you about the rule of 40 for SaaS companies here:
https://www.5iresearch.ca/questions/text/rule+of+40#answer163822. Could you explain further why this model doesn't seem to work for companies in other industries?
For example, ATD has a low single digit free cash flow margin and would not meet the rule of 40 threshold, but it has proven to be a consistently good investment over the years despite that fact. Why doesn't its poor profitability hold it back and what other criteria would you consider important in lieu of the rule of 40 that help you identify it as a good investment?
https://www.5iresearch.ca/questions/text/rule+of+40#answer163822. Could you explain further why this model doesn't seem to work for companies in other industries?
For example, ATD has a low single digit free cash flow margin and would not meet the rule of 40 threshold, but it has proven to be a consistently good investment over the years despite that fact. Why doesn't its poor profitability hold it back and what other criteria would you consider important in lieu of the rule of 40 that help you identify it as a good investment?
Q: Hi
I know that this question is almost impossible to answer and it is anyone's guess but what is the end game for this mounting debt in the US? 34 trillion? Perhaps 10 trillion of that is domestic? Still a stagering number. GDP is 26.24 Trillion with that volume it sounds manageable but they and other goverments dither about, eventually kicking the can down the road. At what point does this come to a head in your opinion? Perhaps a year or an event that you see as an epoch?
Thank you
J
I know that this question is almost impossible to answer and it is anyone's guess but what is the end game for this mounting debt in the US? 34 trillion? Perhaps 10 trillion of that is domestic? Still a stagering number. GDP is 26.24 Trillion with that volume it sounds manageable but they and other goverments dither about, eventually kicking the can down the road. At what point does this come to a head in your opinion? Perhaps a year or an event that you see as an epoch?
Thank you
J
Q: This is a general market question. I hold too many companies in my equity accounts and would like to reduce the number. On the other hand, my overall portfolio is up more than 11% over he past 3 months. I am overweight financials but I see them as benefitting from potential rate drop. Most of my holdings are growth oriented. I do hold approximately 15% fixed income, short and longer term bonds.
What would be your overall approach given potential rate drop and anticipated slow economic growth? 90% of my holdings are for long term. 10% are trades.
Take as many credits as required.
Thanks for all your help.
Mike
What would be your overall approach given potential rate drop and anticipated slow economic growth? 90% of my holdings are for long term. 10% are trades.
Take as many credits as required.
Thanks for all your help.
Mike
Q: Good Morning 5i Team,
1. Is the capital gains tax the same on CDN and US stocks in a cash account?
2. Does one pay more tax selling US stocks with no dividends in an RSP or cash account?
3. Are the dividends from preferred shares eligible for a tax credit? Or does it depend on the offer?
Delete question credits as required.
Thank you and keep up the great work.
1. Is the capital gains tax the same on CDN and US stocks in a cash account?
2. Does one pay more tax selling US stocks with no dividends in an RSP or cash account?
3. Are the dividends from preferred shares eligible for a tax credit? Or does it depend on the offer?
Delete question credits as required.
Thank you and keep up the great work.
Q: Hi Guys,
My question is revolving around an article or a webinar that you've done or planned to do on the 2024 outlook. Best categories, interest rate outlook etc etc.
If you've done such please send me the link. If you haven't do you plan to do something like this?
Sheldon
My question is revolving around an article or a webinar that you've done or planned to do on the 2024 outlook. Best categories, interest rate outlook etc etc.
If you've done such please send me the link. If you haven't do you plan to do something like this?
Sheldon
- iShares Russell 2000 Growth ETF (IWO)
- iShares S&P/TSX SmallCap Index ETF (XCS)
- iShares Russell 2000 ETF (IWM)
Q: Happy New Year everyone!
Can you please update us on your outlook for US Small Caps in 2024? Is it better to invest in US or Canada? A few selected stocks or ETF? If ETF what’s best for top return?
Sorry for all the questions please take as many credits as necessary.
Thanks happy investing!
Can you please update us on your outlook for US Small Caps in 2024? Is it better to invest in US or Canada? A few selected stocks or ETF? If ETF what’s best for top return?
Sorry for all the questions please take as many credits as necessary.
Thanks happy investing!
Q: I am concerned about the US political situation. Should Trump manage to win the upcoming election and the US loses its democracy, I fear that this will not be good for the financial markets. Do you know what the results were in other countries that elected far right political parties? I have a sizable portfolio that is almost 50% weighted to the US. I would like to know how to prepare for this possibility short of selling all our US investments. Thank you
Q: I would appreciate a sampling of hedges for the NASDAQ 100 & S&P 500 please.
Q: This is just a comment on Bob's question about the best and worst months in the stock market and I always remember this fun sarcastic quote from Mark Twain. Happy Holidays!
“October: This is one of the peculiarly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.”
“October: This is one of the peculiarly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.”
Q: A few months back I asked a question about timing for a conversion of American dollars to Canadian dollars. My understanding at the time was the Canadian dollar would weaken over the coming months. As I’m in no hurry, you agreed waiting for a decline was a good strategy. I’m still okay waiting but was hoping you could provide an explanation as to why the US dollar has been weakening. I’m somewhat perplexed that our dollar would be showing strength given the difference in the two economies. Given the US is entering an election year and our federal government continues to demonstrate its fiscal incompetence with almost every announcement (sorry, couldn’t resist!), could you please also provide a ‘best guess’ for where the Canadian dollar might land 6 months from now.
Thanks, as always.
Thanks, as always.
Q: WHAT ARE best MONTHS worst MONTHS FOR stock MARKETS.
how does JANUARY rank /
thank YOU RAK.
how does JANUARY rank /
thank YOU RAK.
Q: Please make it public at your discretion.
In response to Maureen's question about a tax calculator, I have used the one at Ernst & Young for years. It is very robust and includes interest income and all of the provinces and federal tax.
https://www.ey.com/en_ca/tax/tax-calculators
Paul F.
In response to Maureen's question about a tax calculator, I have used the one at Ernst & Young for years. It is very robust and includes interest income and all of the provinces and federal tax.
https://www.ey.com/en_ca/tax/tax-calculators
Paul F.
Q: Are you aware of a chart that compares tax levels on both capital gains and Canadian dividends at different income levels? Thank you.
Q: Morningstar has a stock rating service that provides a "fair Value" of a stock. I am wondering if you are familiar with it and what you think of it. Are you aware of any other services that provide fair values? Thankyou. Cheers
Ps: I may have asked this before. If so, please ignore this qwestion.
Ps: I may have asked this before. If so, please ignore this qwestion.
Q: I want to say a specific thanks to Peter. In the 1990's I started to follow Peter's articles in the Investor's Digest newspaper. Then I followed him on the original BNN show which at that time was ROBtv. Later, on BNN I followed Peter and that is when he began 5i. I am one of the original 5i members. I can't thank you enough Peter for over 25 years of your wonderful advice and insight into both the market but also on human nature. Thanks to you we have managed a very successful family portfolio. Thanks so much. Have a wonderful Holiday Season.
A very grateful Cathy
A very grateful Cathy
Q: https://braxtonwm.com/
I am interested working with Braxton Wealth Management. Can you give me your opinion on this particular wealth management company.
What are your thoughts on their investment / management style.
please be candid about your thoughts, pros and cons
also are there any tax implications by dealing with a non canadian company?
thanks
Ernie
I am interested working with Braxton Wealth Management. Can you give me your opinion on this particular wealth management company.
What are your thoughts on their investment / management style.
please be candid about your thoughts, pros and cons
also are there any tax implications by dealing with a non canadian company?
thanks
Ernie