Investment Q&A

Q: Are there any restrictions on the kind of stocks one can put in a TFSA or a RRSP? Can "penny" stocks be put in? Stocks on the Vancouver exchange?
Is there any input on this from the CRA?
Connie

Q: Hi Folks,
I am looking to add either CNQ or EIF to my RRSP account. May I have your opinion as to which one you would recommend today. Looking for stability and some growth.
Thanks

Q: I have 16.6% of my RRSP currently sitting in cash, from accumulated dividends and some contributions I never got around to deploying into the equities markets. Can you give me two names (US or Canadian equities) that I could spit this amount between, to purchase? Many thanks.

Q: General question for buyers and sellers of ETF's from Canadian and US exchanges. How can one know whether one is permitted to hold it in ones accounts like; TFSA, RRSP and NonReg's. There are many strategies offered like levered products etc. How can one avoid holding the wrong product and getting nailed by CRA with fines. Hope you can provide some guidance.

Q: Can you tell me the specifics about which types of stocks will work best in a TFSA? I know in the past you have recommended some not be in a TFSA, but I don't recall the details. Also, could you provide a few specific suggestions of stocks that would be good to buy now for that account? Thank you.

Q: What financial planning advice would you give, in general, to someone with a large RRSP in the years leading up to a RRIF conversion and commencement of OAS and CPP. With the OAS clawback starting at $93,454 until full claw back at $148,451, is it wise to fully deplete the RRSP to $0 before taking OAS to avoid the claw back? Or at least depleting it to a level of say under $500K so that minimum RRIF withdrawals will stay below the clawback threshold? Is there financial planning software available to DIY investors that you have used yourself or heard is good that can be used to to model some of these different scenarios in an attempt to minimise taxes and maximise the value of their after tax portfolio?

Q: My total allocation in my portfolio is currently at 16%. However, it is inverse what the asset allocator recommend with nearly 4% in Cyclical and over 12% in Defensive. Would you recommend shifting some within Consumer? Do what extent does this matter since the boundary between both seems somewhat artificial? FYI - I own ABEV, BKGN, DOL, FDP, SAP all in my RRSP. If you recommend that I shift into Cons Cyclical, what would recommend as of today for my RRSP (US and CAN)?

Q: Hi I was hoping you could help explain where an RRSP is preferred in investing over a TFSA. I consistently try to offset my income by contributing annually to my RRSP, however unsure the types of stocks or ETFs I should be holding. I currently pay into a pension, hence (pension + RRSP money) results in a higher tax bracket at retirement leading to more taxes down the road. I hold mostly high growth stocks as I feel I have time on my side with my age of 41, although don’t want to get bailed on taxes down the road. Something I feel I can’t avoid.

My question is, should I be holding such high growth stocks in my RRSP or consider other options ? If so, what?

I do understand TFSA’s are generally preferred for tax free reasons. This being said, my RRSP is steadily growing year after year.

Any guidance is much appreciated.

Q: For a 5-10 year hold within a TFSA could you please provide your top 10 Canadian stocks or CDR’s ranked by total return/compounding potential? For a non-registered account with a 3-5 year timeframe could you also do a top 10 list including both Canadian or US equities (no CDR’s), again ranked by total return/compounding potential? Thanks.

Q: Which ETF do you feel compliments VOO the most? This would be for my RRSP. Also, I’m 15 years from retirement.

Your top 3 in order preferably?

US/CND/international/All world.. doesn’t matter.

Thank you

Q: I am coming into a $50,000 gift from aging parents, and would like to invest for my 10 month old son’s education. I want long term growth until he needs the money (probably 18 years or so). Would you recommend 100% ZSP or some other ETF? Also, should I buy in one shot as soon as I have the money ?

Q: Might buy a house, probably won't buy a house. Prices so high, I've been maxout out the FHSA so far and it's mostly in VEQT, bit of PLTR and CRWD which have done well. What other US or CAD stock would you recommend (shorter term BUT will leave it in there longer if market goes down/ ultimately could convert to RRSP) that is underpriced and or could have huge potential upside. Imagining turning the FHSA $40,000 limit into ... ideally a $200,000 down pmt over the next 3-10 years

Q: Hi team. A few months ago I asked about the best stocks and/or ETFs for my 32 year old son to invest $12K of RRSP $. We didn't get to this yet.... In the past you recommended a few ETFs. What would you recommend today. I'll help him get this invested through a self directed plan next week. Thank you!

Q: In retirement I currently rely on my non-registered portfolio to provide about 80% of my income. Within this portfolio only 15% of the portfolio could be classified as dividend or income stocks (like CNQ, RY with 3-5% dividends). Thus far I have been creating income by skimming from my growth stocks, rebalancing when needed, and cashing in on my losers. While I recognize that a higher portion of dividend stocks would provide a greater sense of income certainty and less volatility, I have felt reluctant to forgo, what I currently believe to be, the potential for greater growth by focusing on the careful and patient management of higher potential growth stocks.
Question: From your experience, will I have a greater probability (not certainty) of creating more income in the long term (10 years) through this strategy or should I rely on a greater portion of dividend stocks?

Q: I'm writing to follow up on your response to Josh's questions regarding beaten-down Canadian stocks.

Would you kindly rank your preferred order of purchases among the names discussed? Are there any that you would consider "table-pounding" buys at current levels?

Please also include your thoughts on CNQ, as well as FOUR, ROAD, and CLBT.

Thank you,

Q: Hi 5i,

In response to Marcel's question on retirement planning:

This link takes a little trial and error based on variables set by the user. I found it very useful for Meltdown strategies for RRSP's. .

https://mayretire.com/

D&J

Q: I've been reading a lot about what retirees should do in this environment and most people suggest, have a cash wedge you're comfortable with and keep the balance of your portfolio in the market.

That seems reasonable to me if you have a portfolio. Have you an idea of what percentage of the general public has investments? Are we just talking to a privileged few? Thanks

Q: When a RRSP becomes converted into a RRIF ,I tend to believe that owning a certain proportion of covered calls ETF ( let's say 30- 40% ?) could be interesting in order to get enough dividends each year , to avoid selling, and to preserve the capital for constant revenues when you are in excellent health..Thanks for any comments or suggestions ,the goal being long term optimized revenues .

Q: What’s the best type of account to put this fund in?

Q: Are those funds advantageous to hold in a rsp account regarding on the withholding of US dividends? I am never sure if those dividends get charged fo all holders, or just the cash accounts. So if these do not shelter the rsp from the tax, which equivalent would you suggest.?
Thank you