Investment Q&A

Q: I currently own LNR in a non-rrsp account for a 2% holding. I don't have any cash in this account to buy MG but do have cash in my RRSP account to buy MG for 2% weight. Would you recommend this or just buy more LNR to bring it up to 4% weight.

Q: Hello 5i team,
I think it is time for my wife to redeploy her cash position in the combined RRSP and TFSA portfolios.
I’m listing below her current holdings by the various TSX sectors, by weight and my proposed choice of additions. I would appreciate your opinion as to your order of preference at this time.
Consumer cyclicals (11%) CGX, MG; propose CCL, BYD or TOY
Consumer defensives (0%); propose ATD, DOL or PBH
Energy (8%) ENB, KEY: propose a producer
Financials (13%) SLF, TD; propose any addition?
Health (6%) ZUH; propose any addition?
Industrials (7%) BIP.UN; propose CNR, SIS, STN, WSP
Materials (0%); propose MX or SJ
Info tech (13%) CSU, GIB; propose ENGH, KXS or SYZ
RE/Telcos/Utilities (15%) BCE, BEP.UN, CIGI, FSC; propose reduce BCE or sell CIGI
Cash (26%)
I would not mind that you deduct any number of credits.
Thanks,
Antoine

Q: Good afternoon,

My question pertains to holding US equities in various accounts. Can you please validate or refute the following:

Cash account: US dividends are taxed as interest-50%, and a 15% withholding tax is applied which can be redeemed during tax season.

RRSP: US equities are supposed to be capital gains and divends tax free. However, I have noticed that some equities, such as limited partnerships have their dividend taxed at 38% with an additional 15 % non redeemable withholding tax. Can you confirm this, and are their any other types of US equities that are Exempt from RRSP tax sheltering?

I have also been told that US equity ETFs that are listed in the US are also have their dividends taxed. Is this true? And would this be the same for US equity ETFs that are listed in Canada (ex: those listed on black rock Canada website )?

Thank you for bringing some clarity to the issue. Any other tips you may have would be well appreciated.

Cheers,

KR

Q: Is it best to hold Canadian bank stocks in an rrrsp or tfsa, advantages or disadvantages?
With thanks. Rose

Q: If I receive $10000.00 in dividend income, do I get an additional 18% contribution room in my RSP from this income?

Q: Managing my wife's RRSP. She is 30 years old, but a somewhat conservative investor. I have a position in TD, SLF, NFI after recent pullback ($38), SJ ($42) and BEI ($50). I am looking for another stock to add. With limited funds, it is hard to diversify across all sectors. What stock would you suggest?

Thanks,
Jason

Q: Hello: If you were to pick ETF's today for an RRSP, one to cover Europe and another the US, what would your choice be? Large-medium-small cap at this point would make very little difference. They would be for a long term hold.

Thanks, Brian

Q: RRIF - I have to convert my RRSP to a RIF by the end of the year. My broker is TDW. TD Canada Trust, their agent, wants me to make the minimum withdrawal on a regular schedule ie monthly, quarterly etc.
I want to make the withdrawals on an as required basis, subject to the annual minimum, to help with my overall cash flow demands.
Is there a legal requirement to do it TD's way?
Thanks

Q: I just sold about $5,000.00 in stocks inside my TFSA, with a little profit of $500.00 over the period of 8 months. I did it so I can add it to my self directed RRSP account to lower my taxes this year. In my RRSP I own approx 20% oil,15% financial, 10% utilities, 10% auto, 5% marijuana and the rest is in CDZ. I want to diversify this portfolio. It accounts for 75% of my investments. I am considering a REIT and some technology. What do you recommend?

Q: What's your advice for a younger investor with regards to TFSAs and RRSPs versus non-registered accounts? Should we direct all our savings to registered accounts until we max out our contributions and then direct excess to non-registered accounts? Is there a case to be made for the tax-loss advantages of non-registered accounts before looking at RRSPs? I see TFSAs as a more liquid savings account and an RRSP as much less so. Thanks.

Q: Hello,

The following 5 companies are on my buy list to complete my portfolio:

PBH
TOY
NFI
BCE
CAR.UN

I have room for two in my TFSA, two in my non-registered and one in my RRSP. How should I divide the above 5 stocks into these accounts?

My plan is to buy on pullbacks. But I'm thinking about buying CAR.UN now because it has already pulled back on the mortgage news. Does this make sense?

Q: Peter and His Wonder Team
This is a question about RSP and RIF accounts. What happens when you sell a stock for profit in these accounts. Do you have to declare the profit immediately on this years tax return? Or do you just pay the tax when you withdraw money from the account... when you must withdraw a certain percentage every year after 65years of age. In other words your profits can just accumulate in the account and taxes are assessed when you withdraw funds out of the account itself?
Dr.Ernest Rivait

Q: I am a new member to 5I and wish to realign my RRSP investments partially with the above stocks in my balanced portfolio. Kindly give your input. Thanks

Q: Total return index ETF; is it good ?

Q: BXF / First Asset 1-5 Year Laddered Government Strip Bond Index ETF

How do you feel about BXF compared to CLF? BXF is supposed to be more tax efficient outside a registered account. (I am looking at holding it outside a reg account). Are there any other comparable tax efficient ETFs?

Q: Can you please provide a strategy summary for the following.
I'm trying to find a quick general guide to what types of stocks (and why) are best placed in a RRSP, what's best for a TFSA and what's best for a non RRSP/TFSA account.

thank you

Q: If US Limited Partnerships are held in a RRSP/RRIF are the distributions liable for US tax? If yes, does the broker withhold the tax ?

Q: If a Canadian based ETF (e.g. VUS) invests in a US company or ETF (e.g.VTI), isn't the dividend paid to the Cdn ETF subject to US withholding tax, regardless of whether it is held in a registered or taxable account ?

Thank you for your outstanding service to us !

Bob

Q: Hi team, I love the new site. The ability to save to watchlist is fantastic! In my RRSP, I hold GUD, IT, PLI, WCP, SPE (.5 position) and SGY. These are part of a multi-account balanced portfolio, so my question is not so much to do with sector, but with SGY and PLI. I am down 50% on SGY and wondering if these funds are better deployed elsewhere. I am up 100% on PLI and can sell half for another position. My RRSP is a very long-term hold account. I keep an eye on things, but don't usually make any moves except to trim gains. As you can see from my list, I can handle some risk if I was to replace SGY and sell half of PLI. Am I better off to continue to stomach the 50% loss on SGY or move into something else with better growth potential? If so, what would you suggest for 2 long term growth positions? I have been watching OTC, BCE, SPB (I bought CUS on your suggestion), FSZ.

Q: I have a well diversified group of ETF's in RRSP and looking to add a few individual stocks. Are there 3-4 stocks with good valuations that you might suggest? Thanks.