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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: Hello 5i team,
Your “Financial Facelift Folly” article was very interesting and has “hit home”.
Ten years ago, when I was 65, my RRSP portfolio was around $500k. I established an expense budget that I qualified as generous and that would have helped me maintain the way of life that I was accustomed to. If I achieved a compound annual return of 7%, I would have maintained my income needs for the next 25 years (on a constant $ basis).
Since then, however, I quadrupled my RRSP/RRIF portfolio in 10 years (around 15% compound annual return) and it stands now significantly higher. By the same token; I was never able to spend the amounts budgeted, this fact allowed me to unexpectedly save some additional cash and maximize my TFSA contributions.
However, at age 75, I am no longer comfortable to have 100% of my portfolio invested in equities.
I have revised my expense budget upwards just to be on the safe side and then projected the return I needed in order to meet my revised income needs. This projection shows that I can achieve that goal even if my rate of return matches inflation.
I have now the option to invest all my portfolio in guaranteed GIC’s which I consider as the “worst case scenario”.
For the sake of argument, I got in touch with 2 advisors and they both recommended the usual 50% equities / 50% fixed income; one wonders whose interest were they considering?
I decided (1) to exit the equity market for now, (2) to continue my membership in 5i Research and (3) to tip toe into the equity market in due course, after an eventual recession; but I’ll cross that bridge when I get to it.
I am now sleeping better and so is my wife.
Greetings to all and many thanks for your contribution.
Antoine Sepetdjian
Read Answer Asked by Antoine on September 07, 2018
Q: A friend father age 82 recently sold his residence and is looking to invest. Wants to be in the market. Can you suggest 3 to 5 ETF's for him to invest. Thinking Canadian and Us market , as well as a Bond ETF. Has a small registered fund & TFSA.
Read Answer Asked by David on September 07, 2018
Q: Yesterday I asked the ? if you had any suggestions for an alternative to Fortis that pays a decent dividend and has some growth prospects, utility or not. Unfortunately, I forgot to mention that I already
own Algonquin @ Brookfield Renewables, my bad.
Any other suggestions.
Thanks: Jerry
Read Answer Asked by Jerry on September 07, 2018
Q: Hexo (Hydropothecary) has an activist investor that owns 2.5% of shares is pushing for HEXO to put the company up for sale , privatize it etc What percentage of a company does an institution require before it can push for any change? Is HEXO required to take action? If the company is to put it up for sale and assume it gets $10 per share, would a similar price be offered to shareholders if it goes private (rather than selling publicly). I can see why the activist is pushing for change as HEXO has made significant progress (in deals) and the price has not reflected the positive aspects incomparison to other companies like Canopy, Tilray etc Do you think HEXO will take this seriously (I know it is speculative on your part, but from your experience) Lastly, Stars group is now in the dog category and moving well below 200 day average. This is not good news. Comments please
Read Answer Asked by umedali on September 07, 2018
Q: I am modeling a portfolio after your balanced portfolio (with the occasional stock from your growth portfolio as a replacement) and already hold your other suggestions in the industrial and consumer area. Looking at adding one of the above 4 stocks this week. (DOO would be in place of MG if chosen). What would be your suggestion and why? Thanks!
Read Answer Asked by Paul on September 07, 2018
Q: I am thinking of selling off my profit in those companies. What do you suggest that are safer for the next year.
margita
Read Answer Asked by Margita Elisabet on September 07, 2018
Q: Good evening,
Read your answer on Boston pizza where it should find a bottom soon PZA is at a 6 year low dividend 8.9%. Been waiting for it to find the bottom but it drifted again today on high volumes. Altough I can use the tax loss against ECI . Hate to sell with 36% loss What is your take on it ? Should i wait for a bounce and sell or ? Come tax season this one is going to get destroyed !
Thanks for your keen insights ( checked the definition means sharp and/or penetrating I'm sure many readers will agree)
Denis
Read Answer Asked by Denis on September 07, 2018
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