Investment Q&A

Q: Hi Peter and team
It is time to invest this years contributions in my 35 year old's RRSP which is currently structured: 5% Sylogist(SYZ),15%Telus(T),3% Surge(SGY),18% CDZ,13% Brookfield Renewable(BEP.UN), 4% DHX media(DHX.B), 4% Exco (XTC) and 38% cash.
What would be your recommendations for deploying the cash for diversification and growth, indicating if possible percentages. I have been considering Currency Exchange (CXI) and Alimentation (ATD.B) and some Heath Care but unsure of which ones. Should I consider increasing Exco to an 8% position. I would greatly appreciate your views on this.
Regards
Kathy

Q: Regarding Linda's question on washing within RRSP. RBC Direct for a few years now, has both US and Canadian currency accounts in RRSP, TSFA and all other accounts. Thus when you trade US securities they stay in US $ and you are not hit with currency exchanges coming and going. I find this feature a huge advantage.
steve

Q: Just wondering if I should hold Vee, fez, and vxus inside a registered or non registered account. I thought I read somewhere that if held in a registered account, the withholding tax of 15% would apply (unlike us equities in a registered account), and there is no way to recoupe since it is in a registered account. What are your thoughts on this?
Thanks again for the great service.

Q: I have sold some of my shares in CSU to bring down my allocation from 10% ( thanks to you by the way)
I now have enough cash to buy a new company with a 5% allocation in my RRSP. I'm thinking of VNR, ZRE or AW.UN.
At this moment which one would you purchase?
My RRSP is not quite your Income Portfolio but close.

Thank you

Q: My question relates to what one should hold in an RRSP for minimum taxation long term.
I have quite a diversified portfolio but I rely more on dividends from stable companies instead of bonds for "fixed income." I treat all accounts as one account for diversity.
Some rules of what to put where are clear eg Cdn dividend stocks go in cash accounts to get best tax treatment. However if cdn dividend stocks are held in an RRSP I conclude you lose the favourable tax treatment because when you take money out, its taxed at the marginal rate. REITs appear to be better because the yield is not all dividends. My conclusion is that the priority for picking stocks to hold in an RRSP should be US dividend payers and interest paying securities first and Cdn REITs after.
Does this make sense?

Q: We have Crescent Point and Surge Energy in our RRSP's. We're not wanting to sell and are prepared to hold on for long term. My thought is to move what I can into our TFSA's while the price is down. Thoughts?

Q: Could you please explain the "tax loss selling rule". The way I understand it if you have a non-registered account and you want to declare a tax loss for the year you have to make sure after you sell that you don't buy back the stock within 30 days of the sell. So my questions are:
1) What happens if you accidentally bought back within the 30 days?
2) Can you buy it back within 30 days if you have a profit & not a loss?
3) Can you always buy a stock back within 30days if you are in a registered account?

As always great service and thanks for the advice.
Cheers.

Q: Just for clarification purposes:

If you sell a stock at a loss in a non-registered account the superficial loss rule applies to all accounts, registered and non-registered.

If you sell a stock at a loss in a registered account the superficial loss rule DOES NOT apply. One can buy that stock back in any account, registered or non-registered.

Thanks for your confirmation or clarification.
Ron

Q: I am looking to add a few U.S. stocks to an RRSP account: GILD, JNJ and GRMN. Is there an added cost to purchasing U.S. stocks in Canadian dollars, and in relation to dividends? Would I need to open a separate U.S. RRSP account to hold U.S. stocks? Thanks!

Q: A question on buying stocks on the NYSE or Nasdaq exchange. I have never bought a stock on an exchange outside of Canada, and am very ignorant of the consequences. As an example I would like to buy Apple, and realize I have to pay in U.S. dollars, plus a small fee for exchange both on buying and selling the stock. I have a RRIF, an RSP, and a TFSA and any buying would be through one of these. Is there any problem with me holding a US stock in these programs and is there any tax consequences? Is there any other problems I am not aware of? Thank you.

Q: I have made good profit on CNR,SJ,CGX,BNS,BYD.UN. Should I sell these stocks now and buy them back in third week of December, hopefully at some dip, so as to lock up my profits. These are all in my RRSP portfolio.

Thank you for your excellent advice in the past.

Q: With a diversified fixed income portfolio, which would you prefer:
Arits REIT AX.DB.U 5.75% 30-JUN-2018 Price:104.75, YTM:4.3%
Parland Fuel Bond 5.5% 28-May-2001 Price: 102.50, YTM: 5.2%
Also, an RRSP has to be converted to a RRIF in the year someone turns 71, do you have to withdraw that year, or is it the year in which you turn 72 that you have to start withdrawing?

Q: Please suggest 3 low beta blue chip CDN stocks for RRSP Investing and 3 of similar quality for my TFSA . Thanks. Richard

Q: How on earth does a 7 year old get an rrsp ??

Q: Hi Peter & Team,
Should I consider my wife's TFSA & RRSP as part of a consolidated family portfolio (diversification, % of allocation, etc)? or a "stand alone" portfolio (which may mean duplications etc)
Thanks for a VERY good service!
Morris

Q: hi i would like your opinion on having dividend paying stocks in ones RRSP. Is this a good idea or not , thanks for the help.

Q: Hello, can you please confirm that in LIRA account, like in RRSP account, no withholding tax will be paid on US dividend stocks. Are they important differences an investor should know about those 2 accounts. Thank you for your comments.

Q: I have US$ in my non- RRSP account but would like to buy a US stock in my RRSP account but I have no US$ so I would have to pay the currency exchange difference. Is this a good idea? The US stock I am looking at buying is UTX.
Thanks
Dolores

Q: Hello Peter and Ryan,

This is a question regarding diversification and stock allocating strategy according to different types of accounts for income tax efficiency.
From what I have read I understand in the case of a portfolio consisting of 3 accounts: RRSP, TFSA and non registered account it’s advisable for income tax efficiency to have the following strategy : high growth stocks in the TFSA account, foreign stocks in the RRSP account and dividend paying stocks in the non registered account.
In my case my RRSP has done very well and spreading a 20 stocks portfolio across the 3 accounts RRSP, TFSA and non registered account in even 5 % positions only puts 2 stocks in the fully loaded TFSA account.
Although this will generate extra trading fees I’m thinking of moving the stocks around into the right accounts and also spreading half positions 2.5 % of same stock into TFSA and RRSP in order to get more then 2 stocks in the fully loaded TFSA account for growth, diversification and tax efficiency.
Please let me now this strategy makes sense for the long term and if so which 4 to 5 stocks do you recommend from the 5I Model Portfolio or other 5I stocks that have better valuations for a TFSA account?
Thanks for a great No Conflict service and helping in achieve great returns. Ronald

Q: I read your comments on tax treatment of US ETNs with interest. I hold ETNs in both my taxable corporate investment account and in my RRSP. Am I subject to both Canadian and US taxes on the profits or do I just pay tax in Canada on the taxable account. I assume there are no taxes on gains from any stock sale in an RRSP. Thanks.