Investment Q&A

Q: What are your top 5 Canadian growth small cap picks for a TFSA? and why (what makes each of them worthy)?

Q: I asked this question yesterday but I don't see it in the 'My Questions' section, so I ask again. I want to add a dividend growth company or ETF to my kids RESP with a 5-10 year time horizon. I already have T, BMO, and ABBV in other accounts. What do you recommend from the 5i Research stock and ETF universe as a good buy now with plans to add over time? Thank you.

Q: When managing multiple TFSA accounts, the rules are not always clear. Could you please let me know if my interpretations are sound.

I have two self-directed TFSA accounts with an on-line broker. My understanding is that the total amount I can contribute to both accounts in a year cannot exceed my available TFSA contribution room for that year.

Am I correct in assuming that the following scenarios are allowable and have no tax consequences:

- Contribution room created by withdrawals from one TFSA account in the previous year could be used to make contributions in either or both TFSA accounts.

- Holdings can be transferred from one TFSA account to the other account at any time without the need for contribution room, as long as it is moved directly from account to account by the broker.

Thanks.

Q: Hi,
I know this is a very very "personal' question! If Peter et al don't feel like answering this personal question. I would understand it totally!

How is this team employing or planning to invest their 6500 $ TFSA contribution this year?!

Sorry about the tease.....

Mano

Q: I like the high dividend paying shares of NYMT. Do you see any reason for a Canadian like me to pass on buying it for my RRSP.
After some research it seems to me that I would not pay tax on the dividend payout received in an RRSP. Can you verify that?
Other well respected dividend paying shares such as Bell (BCE) and Enbridge are Canadian companies so I could hold them in my TFSA without any tax implications. I am also noticing CM (Cibc) for long term RRSP or TFSA hold. BNS.TO, Also Telus KEY.To, Hydro one I won't mention Rogerw because I just don't like the way they do business. VDY.To. ZWP.TO covered call ETF. ZWE.TO is another one.
looking to get creative and make my own portfolio but not to proud to buy an ETF for income. I know you have an income portfolio I appreciate that and will look through it again. Looking for feedback for this strategy. I am a 50 year old Canadian citizen living in Canada looking for long term holdings.
Happy New Year - all the best.

Q: I have the above stocks in my TFSA and they are all down and smaller positions. I also have GSY, KXS, SHOP, TOI, ECN, SIS, SU, MEG and ENB in this 300K TFSA (thanks to SHOP and 5i). I am wondering about topping up 2-3 of the above down stocks or something new with this year's contribution. My usual approach has just been to top up the losers but this market has me struggling for ideas. Would you add to any of the losers above or do you have 2-3 new suggestions for me. Thanks.

Q: How would you invest ‘23’s $6500 TSFA allowance? Is there 3 or 4 North American stocks you would buy tomorrow? DCA over the next month into one name? Not concerned about sector or risk - 10 year investment horizon.

Thinking SHOP, BN, NVDA and GOOG. All of which I own today and are down from when I purchased.

Appreciate your thoughts.

Don

Q: My 21 year Daughter has a small TFSA with some Stocks and a ETF. What are a few Growth stocks that you would recommend for the longer term. Looking for some suggestions for stocks that have good growth prospects and would be more that could buy and forget about.

Thank you

Q: I've held Loblaws in my TFSA for a couple of years. Can you comment on hanging on for more growth or as an alternative some options for tax-free dividends in the 5% or higher range?

Q: For a RRIF withdrawal, I'm thinking of switching either Telus or Open Text to a TFSA .
Which of these do you think has more upside potential?

Q: Hi team,

Looking for strong growth names in my tfsa, I have been considering cheap stocks with potential. An alternative approach would be to look at names which have been doing very well this year and which still have momentum and potential. Grateful for your comments and some names which have wind in their sails.

Jacques IDS

Q: Hi Team,
Since it's near year end, I was wondering if you could list me some of your TOP PICK ideas for a 2023 TFSA contribution. I am looking for long term hold ideas. Thanks

Shane.

Q: Hello 5i,
This is pertaining to the question about moving stock In Kind from an RRSP to a TFSA. I have done this numerous times with RBC Direct Investing and I will recount the process as I have experienced it.
1. I will use 20% as the withholding tax amount as an example only. If you wish to transfer $6,500 of equity the tax is calculated as follows: 6,500 / 0.80% = 8,125 * 0.20% = $1,625 Withholding Tax.
2. The withholding tax can be either cash on hand in the account or the broker can be instructed to sell the required additional shares of the equity (or even of some other equity) to cover the cost of the tax.
3. The shares are transferred out to a cash/margin account, they do NOT go directly into the TFSA. They are then subsequently transferred into the TFSA within a day or two at the most - as I recall.
4. Make sure you retain copies of all transactions to capture all relevant data for tax purposes.
This has been my experience and the process has worked smoothly and quickly for me. And, kudos to RBC Direct Investing staff who have worked with me on doing this - they have overwhelmingly been helpful and knowledgeable.
I hope this helps......
Merry Christmas and Happy New Year to all at 5i and in the 5i community!!!
Cheers,
Mike

Q: Hi 5i. Merry Christmas to all !

I need some help with the mechanics of an 'in-kind transfer'. Particularly with one from a RRSP to a TFSA.

If I use the 2023 TFSA contribution limit of $6500 and want to move that amount of Stock 'A' from a RRSP to a TFSA, then I understand that withholding tax would apply to that amount.

Where does the withholding tax get paid from? I am assuming a number of Stock 'A' shares would be sold to cover the amount of tax owed. Is that correct?

Furthermore, is it possible to have the withholding tax paid from cash within the RRSP or would the tax owed be added to the transfer of $6500 0f Stock 'A' to the TFSA?

Essentially, can I move $6500 of Stock 'A' to the TFSA and pay the withholding tax from cash in the RRSP, as if they were two separate transactions.

Thanks in advance.

Martin

Q: With reference to Andrea's question on transfer-in-kind of stock to TFSA,
what if the transfer involves capital gains, instead of loss, with stocks transferred from a non registered account to a TFSA? How should the capital gains be handled?

Q: This is probably a silly question but I don't want to make a mistake.
Instead of raising 6500.00 cash for my TFSA on Jan 1st, I'm thinking about transferring stock out of my cash account instead. I've already sold my tax loss candidates. I'm not sure how this works though. If my book cost is 6500.00 and market value is 3000.00, does that mean I've contributed my full amount? And in what scenario would this be a smart idea? I could also transfer stocks with significant capital gains.

Thanks,
Andrea

Q: Hi Guys,

Your thoughts on starting a small position on Tesla.

Merry Christmas

Jim

Q: These are my holding inside my TFSA. I am 25 years old and would like to know your opinion on this Portfolio and if you think these are good longterm holdings or if they could be replaced with a better investment (please indicate what company you would replace with). Also witch companies would you consider a Buy in 2023 from these holdings for my 6,500$ contribution room.

Thanks

Q: Hi

For 2023, I can contribute $17,500 to my TFSA.

I was thinking of splitting the amount between CELH and LNTH.

Your comments or other suggestions are most welcome.

Thank you

Mike

Q: Hi Peter and team, would appreciate your thoughts on what the TFSA should be used for and why, fixed income or capital gains. Thank you