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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: Hi Peter, would you consider Fairfax as proxy to market /financial sector.
would you SUGGEST FFH or buy BNS, SLF, BAM, CSH.UN (in equil weight totalling amount equal to FFH). This would be for RESP with 8 years to go and regular contribution over that time. OR any other suggestions for resp account. Thanks for your great service.
Read Answer Asked by RUPINDER on September 11, 2017
Q: Hi team,
I wanted to get your opinion on the start of my son's RESP.
BYD 30%, GUD 40%, PHO 15%, CRH 15%
I recently added CRH on what I viewed as a value play, however I'm not sure about this move. Would you swap CRH out, and if so for what? Any suggestions or tips are appreciated.

Keep up the good work. Cheers
Read Answer Asked by Ryan on July 28, 2017
Q: I have opened an RESP for my 5month old with 3K in it (2500 plus 500 from govt). I know its small the first year, but I don't want to add a Canadian ETF as they are too oil and gas and financial focused.

I would like to own some good Canadian growth names that will hopefully be worth a lot when she heads off to school in 18 years and would like to keep it small since it is a small account to start. My idea was the following 7: GUD, SHOP, SIS, T, TD, AQN, PBH. I would like your opinion on them. Would you do anything differently?

Once I own all of the Canadian stocks my plan is to add XAW for world diversification.

What do you think of this idea? Which stocks would you add to the account first? I was thinking of starting with either 3 of 1K each or 4 of 750 each. I pay 7 dollars to buy them which isn't too bad.

What order would you add in?

With only 3K per year in the account it would take 3 years to get the stocks and ETF. I could just add another 2500 to the account now so that I can buy more of it now and be instantly diversified. I would not receive the grant on it but would I still receive future grants?

Read Answer Asked by Carla on June 08, 2017
Q: Hello 5i - I am soon to become a grandparent and would like to start a $1,000 portfolio the day the baby is born and continue contributing $1,000 on each birthday for the next 18 years. Which two stocks, or ETF(s), if that would be a better choice, would you suggest starting with?
Read Answer Asked by Sandy on June 05, 2017
Q: Good Morning! I am going to become a grandparent for the very first time in the next couple of weeks!! I would like to build a stock portfolio for my grandchild over the next 18 to 20 years, investing $1,000 each birthday year. Which two stocks (or ETFs, if you think that is better) would be excellent choices to begin a long-term portfolio the day the baby is born, with dividends reinvested through DRIP? Thank you so much for your help!
Read Answer Asked by Sandy on June 05, 2017
Q: HI team,

I am looking to start a RESP with a 15+ year time line. My 5 month old son loves the stomach churning world of small cap investing, just like his old man. What are your thoughts on putting all 2500 of this year's contributions towards PHO at its current value. I was also considering allocating 1000 shares in PHO and the remaining in GUD. My thoughts are that we start off with some higher risk/growth opportunity, which can be throttled down as our time line decreases. I would appreciate any strategic guidance or alternative suggestions.

Thanks
Read Answer Asked by Ryan on May 26, 2017
Q: My portfolio has been sitting unchanged for some time (2 yrs), many winners are 5i recommendations, some not so much. With that said, my portfolio is well underperforming the model equity portfolio. Below are my current holdings. If I am to sell off those not included, and change the weight to match those in the model portfolio, how would you go about executing this? Big bang? Are there names you would wait to get into today, or those that you are considering a change in the near future? The value is about 500K, so the trades(from my perspective) will be significant. % are approximate on the add side. Your advise would be really appreciated.

AYA-6.3 (%) - Sell
AVO - 3.7 - Sell
BAD - 3.5 - Increase to 5%
BNS - 6.3 - trim to 5%
BDI - .6 - Sell
CGX - 4.8 - Sell
CSU - 5.6 - No Change
DSG - 4.0 - Sell
DHX - 3.7 - Sell
ENB - 3.5 - Maintain
ENGH - 4.2 - Maintain
XTC - 1.05 - Sell
HCG - 1.1 (ugh) - Sell and burn transaction receipt
MUX - 4.6 - Sell
PKI - 6.4 - Trim to 5%
PLI - 2 - Sell
SSL - 3.8 - Sell
TOY - 6.7 - Trim to 5%
STN - 3.8 - Sell
SJ - 4.1 - Maintain
SLF - 5.2 - Maintain
SYZ - 4.1 - Trim to 3%
TOU - 3.5 - Sell
WCP - .7 - Increase to 3%
Add: AEM 3%, AIF 3%, ATD 4%, CCL 5%, CLS 3%, CXI 3%, GUD 3%, MG 5%, MX 3%, KXS 5%, NFI 3%, PBH 5%, SIS 5%, T 3%, WSP 4%

Also - (I have asked about as many questions of late as I have traded) - for RESP for 4 yr old, roughly 12K in there now, where would you park this given building a portfolio of names is a challenge with the limited funds.

Thanks,

Eric

Read Answer Asked by Erichsen on May 25, 2017
Q: Hello 5i
The positions for KXS (kinaxis) and PBH (premium brands) have run to 6% of my kids' RESP (thanks 5i!).
Should I sell off 1% of each and purchase PHO? Or as I am waiting for TIO to close and that is a 3% position would I use TIO funds instead to purchase PHO and just let Kxs and pbh run?

In terms of RESP management, my kids are 4 years away from drawing down on the funds. Our plan is to turn enough investments to cash each may to cover our annual contribution for each child for the September to April year. The remaining funds would be otherwise fully invested except the fund has roughly 5% cash and 0 fixed assets. Please comment.

Read Answer Asked by Kat on May 25, 2017
Q: My wife and I just started out an resp for our 3 year old. We only have enough to start out with one position and are planing on adding a potion or two every year. We are ok with some risk at this stage. Can you recommend one or two stocks at his point in time with good potential over the next 5 to ten years? I was thinking GUD may be a good fit. You are the experts though.
Read Answer Asked by Richard on May 17, 2017
Q: I plan on contributing $2500 a year for my daughters RESP. Since these are smaller amounts should I just be adding some ETF's? I currently have some TD and ENB as I feel these are good long term investments, but I don't know how much diversification the RESP should have. Would IWO,be a good add, or should I just add a new position every year, of a high quality dividend payer?

Thanks as always.
Read Answer Asked by Colin on May 05, 2017
Q: These are some stocks in my Margin Account that don't pay a dividend . In my RSP, I have BCE , ABT , BPF.UN , and REITS and royalty trusts that pay great dividends .I have a fortune sitting in my RSP that keeps on growing due to dividends but I am 67 years old with a pretty low income . I am thinking that I be rotating these names and increasing my dividend income rather than increasing my RRIF liability in a few years ? I would really appreciate your advice - Thankyou for helping me have such "problems" .
Read Answer Asked by Thomas on May 01, 2017
Q: Hi,

I contribute monthly to my family's RESP, but as the value of the family plan grew I've started to question what happens with the money if they don't go to school.

Turns out both myself and the gov't get our capital back (no taxes) plus the earnings on the investment (taxable), plus 20% tax (the gov'ts share, I suppose).

My concern is that I'm prioritizing my RESP contribution over my TFSA contribution (thus not maxing out my TFSA). In your opinion, should I be prioritizing TFSA contribution over RESP?
Read Answer Asked by Cameron on April 13, 2017
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