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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: I'm curious as to the lack of a high dividend paying etf in your Income portfolio? Also curious as to your thoughts on the partial use for these in a RRIF or PLIf account ( I am in MB and we have PLIF's). I'm setting up a PLIF and considering having more than a full position of HDIV, along with big stable dividend growers I'd pick from your favorites. I have a RRSP of the same value of the PLIF and investments in TFSA. I've been 100% equities all my life, eat volitility for breakfast. If you were setting up your own PRIF, looking to make significant income, what would it look like?
Read Answer Asked by Charles on March 26, 2024
Q: Please give me some guidelines about the type of companies preferred in TFSA, RIF and non registered accounts. I am particularly iinterested in guidelines related to tax efficiency and it's overall effect on results.
Read Answer Asked by Ron on March 25, 2024
Q: Wealthsimple approached me with an 0.5% cash offer on the totality of my investments if i moved my accounts with them. The accounts - Cash non reg, + TFSA + RRSP are being transferred in kind. They tell me that they ELASTIC N V ORDINARY SHARES (in my RRSP) cannot be held at wealthsimple. I either have to liquidate the shares and maintain the transfer, or leave the shares in my RRSP at my current institution (investorline)

The ESTC shares are down 20% in my RRSP. so can't harvest a loss.

How would you proceed? If you decide to sell the shares, what would you move into? I am very tech heavy, but enjoy the risk and the rich rewards that come with being tech heavy,

If replacing, i was looking at some securities that took big hits recently AMD, LULU.

Any compelling ideas? Please advise, Thank you.
Read Answer Asked by Karim on March 22, 2024
Q: There are a number of Canadian based NASDAQ100 and S&P500 ETF's. Which NASDAQ100 and S&P500 ETF would you prefer, or would be "best", for a TFSA account, and why? Would investing within an RRSP or in a non-registered account alter your selections and if so, why would that be? Thanks.
Read Answer Asked by Bruce on February 09, 2024
Q: Dear 5i
Which of the above listed stocks would you place in an RRSP and which in a TFSA and in what order of preference ?
Thanks
Bill C
Read Answer Asked by Bill on January 24, 2024
Q: Hi,
What would be your top 5 CDN consumer discretionary stocks in a RRSP for a 5-10 year hold.
Please list in order of preference for a buy today.
Thanks
Read Answer Asked by Marco on January 23, 2024
Q: a book i would really recommend that has helped me a lot in last few years and written by a canadian is called "your retirement income blueprint" by daryl diamond and he has a new one called "retirement for the record"
both are very good but i would start with the income blueprint.
Read Answer Asked by hans on January 23, 2024
Q: Hi 5i
You recently answered this question from Steve:

Recently a couple of younger friends (mid-60's)have just converted their RRSPs to RRIFs. Except for the possibility of needing the cash flow, I can't understand why they would want to convert to a RRIF.

Am I missing something? Are there advantages to converting early?
~~~~~~~~~~~~~~~~~~~~~~
Another reason his friends may be doing this is long term tax planning. Quick example, a couple in their mid 60s each has 500k in RSPs. If they were to both die suddenly that $1 million all gets reported as income on one return and most of it is taxed at over 40% (in BC the amount over $241k is 53.50%). To avoid this, the couple would need to live long lives and gradually draw the money out. But because none of us know when our time is up, they could take some out now in the 20% or 28.2% tax brackets (BC rates). The winners will be the kids and grandkids, the loser will be CRA. So by taking money out before 71, they are increasing the years when they can take money out at less than 30%, and reducing the potential giant tax bill at the end. And if they have not fully funded their TFSAs, they can use this money to top them up. Then going forward their interest, divs and cap gains aren't taxed. In the RSP or RIF, they will be taxed on all 3 when they take it out.
Greg
Read Answer Asked by Greg on December 23, 2023
Q: This question was asked by Atchuta on November 20, 2023.
"My wife took early retirement with DB plan. Her RRSP and TFSA are well diversified. She has enough money to invest in about 10 companies. This money is not needed in foreseeable future. However, a small dividend is appreciated along with capital appreciation. It will be invested in a regular account.
Can you please suggest top 12 companies."

What would be your answer if it was an RRSP account instead of a regular account, would you change anything ?

Thank you
Fernando
Read Answer Asked by Fernando on November 21, 2023
Q: Hi 5i,
I understand each investor has their own idea of risk but I would be interested in getting your thoughts. In regards to small caps stocks I believe I choose quality at an attractive price with a plan to hold forever (of course they don't always work out and I may eventually sell them). I struggle with whether to buy them in my TFSA and/or NonReg account. TFSA is great if the stock appreciates dramatically and the NonReg is great if I pick a loser and I sell it for a capital loss. Can you perhaps provide some words of wisdom how one can approach this dilemma. Thanks
Read Answer Asked by Ian on October 11, 2023
Q: I am selling some of my stocks from an RRSP. Based on your advice to avoid trimming the flowers to feed the weeds, I am thinking I should sell the ones that are down. TVE is down 23%, ENB 17%, and SHOP 19%. Which would be the priority to sell or is there a better approach in this situation? They will be sold as cash is needed each month so it will just be a reduction in my position. Adding info to my question earlier. I am generally following the Balanced Portfolio, except I have substituted TVE for Suncor but in a much smaller position.
Read Answer Asked by Christine on July 30, 2023
Q: I am doing a portfolio clean up in my wife's RRSP. The following companies are all down. Please provide comments on add, keep, or sell and your suggested order in these actions.
Largo (LGO)
Palantir (PLTR)
Questor (QST)
Relic (RHT)
Sangoma (STC)

Thank you Gordo
Read Answer Asked by gord on July 13, 2023
Q: Hi Peter,

Can you provide a general list of some broad investment themes that one should consider in managing a RRIF. Any additional references would also be appreciated.

Thanks
Read Answer Asked by Greg on May 31, 2023
Q: Hi 5i,
I am turning 72 and moving from an RRSP to a RIF and think this portfolio should be more orientated towards income.

In that light I wonder if you could suggest some replacement stocks for the non dividend paying TMUS and DIS on the US side of my RIF? Thanks as usual for you help.
David
Read Answer Asked by David on May 01, 2023
Q: Hi I after reading Jason Heath's article in the March/April issue of Canadian Money Saver I became very confused about US withholding Taxes on US companies held in my RRSP.

Mr Heath stated:
"That said, in some cases, U.S. and foreign dividends can be subject to tax annually in an RRSP.
U.S. dividends paid to a Canadian residentís RRSP can be tax-free if there is an up-to-date Form W8-BEN Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting on file with the brokerage. However, this tax exemption only applies to U.S. stocks owned directly or U.S.-listed ETFs that own U.S. stocks."

For many years I have held a lot of US dividend paying stocks in my self directed RRSP in US dollars. I was always under the impression that there is no US withholding tax on these dividends in a self directed RRSP and that the W8-BEN form was not required .

I know these are Mr Heath's comments and not your own, but can you please clarify.
Read Answer Asked by MANFRED on April 25, 2023