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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: This could save a lot of pain for fellow 5i members: If you hold U.S cash outside your RRSP and your TFSA... (A) the gain is calculated by subtracting the CAD value of the ACB from the CAD value of the proceeds (B) the buy and sell generate a deemed disposition of U.S cash that must be reported. It had a big effect on my taxes. None of my friends understand this, so it's likely many here have missed this. Because the exchange rate is now far from 1.0, CRA is now looking at that. You can see an example here: http://www.adjustedcostbase.ca/blog/calculating-adjusted-cost-base-for-foreign-currency-cash/. You can go to the tax section of the forum to ask questions.
Read Answer Asked by Matt on May 02, 2016
Q: In your esteemed opinion which would be a better way to invest in Gold:
1) Buy the Stock XAU, or
2) open a BitGold a/c, wherein you Cash deposit buys Gold at it then spot Price and you sell at whatever Spot price prevails at time of Sale. $ Cost Averaging alos has a play here.

Many Thanks. Austin
Read Answer Asked by Austin on May 02, 2016
Q: You recently answered a question by Isabel about Sherritt bonds. Where does one go to see what is available in high yield bonds? I use TD Waterhouse as a broker, and when I search high yield bonds, I only find a very small selection, usually 5-10, and I couldn't find the bonds Isabel was asking about. The same thing happened when I searched for Pengrowth Energy bonds that I read about in an article a couple of weeks ago. Where can I get a complete listing? Thanks for your help.
Read Answer Asked by Donald on May 02, 2016
Q: Regarding Kim's question about fees her broker might earn from putting her in ETFs. Why not simply ask the broker how he/she gets paid. It's a fair question. If the broker does not provide a clear answer, perhaps it is time to find broker who will.
Guy R.
Read Answer Asked by Guy R. on May 02, 2016
Q: I manage a part of my portfolio and have some with a wealth management firm that is strictly income. My wealth management firm has been buying a lot of ETF's lately, and I am concerned that I am paying fees to the firm as well as fees on the ETF's, and that overall it is cutting into my income more than I realize. I have been searching the internet for a site that will list the fees associated with ETF's so that I can make some calculations, but can't seem to find one. Do you know if wealth management firms get any sort of kick-back for buying ETF's, and do you (or another member) have a suggested site with fee information easily available?
Read Answer Asked by Kim on May 02, 2016
Q: I know it is difficult to predict the future of currencies. But I am still interested in your opinion on the Canadian to US dollar exchange. With the current price of oil, do you think the Canadian dollar is about as high as it will get, relative to the US dollar, for the next couple of years? Thanks!
Read Answer Asked by Linda on May 02, 2016
Q: Valeant was a company showing everyone that is was not a well run company with no R&D, and a CEO focused only on expansion and looking good to the stock market. And funny accounting.

But the market, Wall Street, Bay Street and most investors willing overlooked it!! Including 5iResearch.

Podcast: As identified from minutes 0:35:10 to 0:45:10

http://www.podbean.com/media/share/dir-4scbv-17fda94
Read Answer Asked by Stan (1) on May 02, 2016
Q: when buying stocks you recommend depending on the stock up to a 5% weight based on total portfolio. My question is that since you are limited to how much you can put into a TFSA that a 3-5% of the total may be up to 30- 40% of the TFSA account,you could do very well or lose quite a bit in your TFSA depending on how the stock does.So should there a percentage difference when investing inside the TFSA especially if investing in some growth names that you have provided.
Read Answer Asked on May 02, 2016