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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: Hi team
I am a Canadian citizen residing in Canada
I have been investing in some US mutual funds that I bought directly from the US mutual funds, Fidelity Magellan and Vanguard Windsor 2
they do have a withholding tax for dividends and income
My question is that when I sell or redeem the shares in the mutual funds, am I subject to a withholding tax on the amount redeemed, (about 20-30%) and I was told that in order re-claim the withholding amount ;
I have to file a US income tax return and show it to Rev Canada to do so. if you have information, it would be helpful, thanks
Read Answer Asked by Michael on April 05, 2017
Q: If I may be permitted a response to Peter's query regarding his conversion from a RRSP to RRIF, I would suggest it all depends on whether or not he will need income from his RRIF. I am strongly opposed to the notion that, just because a person reaches a certain age he/she should convert to a conservative portfolio. I'm almost 80 and since I don't need a lot of income from my investments, hold no bonds and except that dividends help to define a quality company, don't worry about dividends. My portfolio is based on the Balanced Equity portfolio from 5i with some diversification stateside and EAFE. My performance has been more than acceptable. The withdrawal requirements of my wife's and my RRIF have been met by transferring to TSFA and will continue to be until I run out of TFSA room.
Read Answer Asked by Fred on April 04, 2017
Q: Since Canadian Reits have to distribute out their capital gains [and hence NOT reinvest in new properties] and with declining ROC components.....Is it time to re-invest in Canadian dividend stocks for those of us who depend on a rising stream of income.

Our reits face unfair competition from pension funds, which can reinvest capital gains tax free.

I have been in Cdn Reits since the late 1990's. Is it time to 'kiss then good bye'?

Thanks.

Paul
Read Answer Asked by PAUL on April 04, 2017
Q: With the trillions of dollars held offshore by US Corporations what would be the impact to European Banks when Trump approves the repatriation of these funds back to USA at a low tax rate. Would monies out of the USA be on deposit or held in government short term investments or US Treasuries. Would there be any negative impact to European Banks or local currencies ie Euro or pound etc when money is brought back to USA ? Bob
Read Answer Asked by bob on April 04, 2017
Q: Lester Asset Management is a small wealth management Company. They have made numerous appearances on BNN. For someone who wants a "No Fuss" Canadian portfolio of One or two ETFs like VCN & XHT and a small/medium fund like Lester Canadian Equity Fund, how would you rate the Fund & the company? Would you recommend another fund in the small/Medium class instead?


Thanks Team
Read Answer Asked by Warren on April 03, 2017
Q: Please do not deduct credit as minimal amount of time.2 part question on Ex dividend.Say the ex dividend is April 6 & I buy today which means settlement date of April 6. 1) Do I get the dividend? 2)Can I sell on April 6?.Appreciate U usual great services & views Congratulaions for your 5 small cap picks--PHO,ZCL.GPS,ITC & GSY--on NP,saturday & Van.Sun,monday.All had sharp increases today ranging from 2.47% to 9.2%
Read Answer Asked by Peter on April 03, 2017
Q: I've been wondering about growth vs. sector allocation. My portfolio is well diversified and has a growth bent due to my situation and not needing income for a number of years. The question is: when looking for growth, is it advisable to look for growth companies in all sectors? Or would you focus the growth more in certain sectors such as technology, and more stable companies in a sector such as financial? I need to add to healthcare, financials, telecom a bit but not sure if they are the best place to add small-cam growth, or look to find that in technology/industrial/discretionary. If in all categories what are best suggestions for small cap growth in health (other than gud), financials and telecom?
Read Answer Asked by Kel on April 03, 2017
Q: Having traded with the Active Trader Program with TD. which has ended, I am looking for a recommend on a new broker with a better trading platform than the new platform (TD-Advance Dashboard)which is deficient compared to ATP for Canada. I am happy with Think or Swim for my U.S. trading. Any suggestions. Platform is very important for active traders. thank you for what you do for subscribers.
Read Answer Asked by john on April 03, 2017
Q: I have taken back my portfolio from a fee based brokerage, and included were a number of preferred shares that I am considering selling so that I can concentrate on dividend growth stocks. These preferred's have increased significantly in the past year, and I think this may be a good time to sell, although some are still below their cost. I would keep any that you might think are worth retaining for their dividends.
The issues are Brookfield Office Property 5.15% Preferred P
Enbridge 4% rate reset Prefeered U
Fairfax Financial 4.75% Preferred M
Husky Energy 4.5% rate reset Preferred C
Industrial Alliance 4.3% Preferred G
Royal Bank 3.6% rate reset Preferred M

Thanks very much for your help on this specific opportunity and for your good advice on investments.
Read Answer Asked by doug on April 03, 2017
Q: Good morning 5i team!
I have a joint RESP account for my children who are 11 and 9.
At this time I have approx $85k in the account distributed as follows
$23 bond 2.10% mat June/2018
$22 k in VDY
$32K in VFV

I have a remaining $7k+ and wanting some growth, dividend with stability so I won't lose as it is a more short term time frame.
What do you think of the overall weighing of the portfolio and what would your suggestions stock wise be for the $7K.
Read Answer Asked by Sarah on April 03, 2017
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