Investment Q&A

Q: Hello Team,

I am looking for advice in re-balancing my TFSA account currently holding AEI, HBM,RC,FEYE and PRW (1/2 pos). "Aggressive" growth is my objective for this account, I am OK with volatility and have a time frame of 3-5 years. I am looking to add QST, PLI, AVO, KLS and DHX.B, with new money. Can you give me your thoughts on the list in terms of diversification and sector weighting?
If you think I need to replace some names, can you suggest alternatives, preferably low dollar securities (<$ 15) with very good growth potentials.

BTW, does any of these have a chance of making it to your upcoming growth portfolio? Do you suggest that I wait for that?

Thanks as always.

BK

Q: Hi Peter
I just checked my TFSA account and have a 1% admin fee taken out by RBC. Is this a standard fee in the banking sector? It covers the cost of trades. I have a self administered account with TD and am wondering if I could transfer the account.
Thanks
Gary
(Anxiously awaiting the portfolio review!)

Q: Hi Peter, What do you think about these tech companies: RFMD and TQNT (which apparently are merging to create QRVO). Also, CODE and IMOS. Would any of these fit as a buy? If so, would they be ok in registered and/or non-registered account?

Thank you!

Q: Could you please recommend four or five of your favourites for my TFSA in January . Thanx Robbie

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

Q: Peter In six weeks were into a new year and what a opportunity to move my surge shares into our tsfa and enjoy the tax free income.This is to me the silver lining of the low oil price .

Regards Stan

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: I’ve been thinking about how to distribute my portfolio among my TFSA, RRSP and non-registered accounts. It seems to me that TFSA space is very valuable. Once you lose it, say because a stock crashes, you may never get the space back again. Perhaps its better to be conservative with your TFSA portfolio so you can take advantage of all its (growing) space for a very long time. As for RRSP space, I really own only about half of that space since the money is taxable when it’s withdrawn. If I take a risk in my RRSP and it turns out badly, the government will, in effect, absorb half of my loss. So it seems to me the TFSA is the best place for my fixed income assets and the RRSP is the best place for my risky equity bets, while my non-registered account is the best place for my less risky equities, especially those with good dividends that are eligible for the dividend tax credit and have some growth potential. What do you think of this perspective?

Q: I am currently underwater in my TFSA by 20 percent. My current holdings are CIX,FRC,FIT,MAG,VET. The biggest losses have come from FRC,MAG and VET. In a recent answer you suggested a TFSA for growth of AYA,QSR,KLS,CLL.B,AVO. I have a 10 year time frame until retirement.
My question is should I sell all or some of my holdings and repurchase your previous suggested portfolio. Or is there a better selection of stocks for my TFSA.
Thanks for your help!
Victoria

Q: With the recent downturn in the markets, it seems there is a buying opportunity. I've had each of my adult children open a TFSA with $5500 in it. What investments would you recommend if:
A) the objective was growth without taking on too much risk for the next 5 years;
or
B) the objective is to maximize the value at the end of 5 years even though there's a medium amount of risk.

I believe they will be adding $5500/yr

Thank you for all you do!

Q: I am looking to add to my small, initial $10,000, TFSA. It presently has 4 stocks in it BDT (32%), BEP.UN (12%), CF (45%)and ESN (10%). The portfolio is up 20%.
I am looking to add $5-10,000 between now and the end of the year and would appreciate suggestions on what to add to the mix?
Thanks for the help!
Ken

Q: Hi Peter, i am planning to open a TFSA account for my 18 year old son this month. Any recommendations on what to buy? Total investment amount witll be $5500.

Thanks.

Q: TFSA I have mishandled my TFSA and am down a stupidly large amount. I recognize that I cannot utilize the losses but is there a way to replenish to the full amount? IE Could I withdraw the entire amount and then replace it with $31K?

Q: Hi Peter & team,
Would it make sense to transfer “in-kind” slow moving / losing stocks from TFSA to cash (non-registered) account?
This way my TFSA account will have next year an extra contribution room and I will be able to use the losses against capital gains.
Your advise is much appreciated.
Morris

Q: I have approx 30k to invest in a TFSA which currently has Questor as it's only holding. My RRSP pretty much mirrors your Model portfolio with the addition of DHX , GUD and DEE. I would like to maintain a 20-25 total stock approach across both accounts but wonder what companies you recommend at this time or what positions I should add to?

Thank you

Q: Hi 5i: A comment on Ronald’s question (Aug 1) about spreading holdings across more than one account (RSP, TFSA, Taxable). I took his issue to be that, given the amount of his total investments, two 5% equity positions would max out his TFSA capacity, resulting in his betting his potential for TFSA tax benefits on only two higher growth (and quite possibly higher risk) equities. I suffered through a period where a similar concentration that did not work out as desired seriously hamstrung my ability to grow my TFSA. Back in the first couple of years of TFSAs, when the accumulated contributions were $5k or $10k, this concentration for equity holdings was only really avoidable through an ETF or mutual fund. But now that one’s total contributions may be as high as $31k, and one may have grown from that with some years of investment returns, TFSA account balances can be large enough to warrant treatment as mini-portfolios and in my view many of the regular principles regarding diversification and stability should be applied. I agree with your general suggestion that the TFSA accounts be weighted toward higher growth companies because if you can get some of the high growth benefit in a tax free form it is great. Probably even better than no tax bill is the accomplishment of increasing your total allowable tax free investment space, which would otherwise be severely restricted by the annual contribution limits. However, by the same token, the value of that tax free investment space makes the TFSA the worst place to suffer a significant loss. So I would say have some high growth potential in your TFSA but also have some relatively stable reliable stuff in there that will preserve your ability to salvage the account and recover in the event that one of the high growth vehicles doesn’t work out. That probably means you don’t concentrate your TFSA in just two positions (at least, it wouldn’t fit most people’s investment profiles to be that concentrated). Particularly now that an equity transaction costs most do-it-yourselfers $10 or less, you are not costing yourself much in fees to have some diversity in TFSA positions starting in the 3 to 5 thousand dollar range. And you are not costing yourself much in extra fees to have some of the same holding in different types of accounts in order to have a stabilizing or growth effect on each of them. Thanks!

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 am putting 31 000 into my wife's TFSA investment account. Perhaps 5 different stocks from the Model Portfolio which will result in growth and also garner dividends. Which 5 would you recommend and should it be all done at once or over a period of time? Thanks

Q: Recently you replied to a question about tourmaline that you would hold it in a tfsa account or, taxable account because of favourable tax treatment on capital gains. I thought an rrsp would be a better place if you didn't have roon in tfsa. In an rrsp you won't pay any taxes at all. Obviously, you know more than me in this area and so i am wondering if i have overlooked something
Thanks as always for the great , informative and interesting service

Q: What is the advantage of in kind transfers from a non registered account to a TFSA if one is charged capital gains anyway, and can't claim capital loss--which presumably you COULD claim if you sold the stock and transferred the $? Is it that the transfer is done without a transaction fee?