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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: Could you confirm that if I buy bonds in an ETF, they pay dividends rather than interest and are therefore taxed at a preferential rate. If I buy bonds, they pay interest which is taxed at a higher rate.
Are all management fees for investments held with a financial advisor tax deductible or only those held in non registered accounts (margin accounts).
Would management fees for RRIFs, RRSPs and TFSAs qualify for a tax deduction?

Could you confirm that if I hold securities in foreign securities such as Berkshire and have bank deposits in foreign currencies one is required to declare any amounts exceeding $100,000. Is this amount at cost or retail value of the security. Is this calculated in Canadian currency? Are foreign investments held in registered accounts (RRIFs, RRSPs and TFSAs exempt of this declaration. Could this be avoided by holding Canadian securities that have foreign investments such as TD, Brookfield (BEP.UN, BPY.UN, BIP.UN, BAM.A)? How does one calculate the value considering the volatility of the exchange rate if it is to be converted to Canadian currency?
I assume it is calculated on the cost of the security to avoid the volatility of the security.

Read Answer Asked by Donald on April 29, 2019
Q: I've been researching large cap high quality dividend growth companies with a >2% dividend yield for cash positions in registered and non registered accounts. For the most part the Canadian banks are the only ones that are attractive on valuation, but I currently have a 20% position. I've love to buy more of CNR, T, FTS, AQN, CAR.UN, TRP but they have run up quite a lot. One strategy is to keep buying the banks to a 30% weighting and reduce back to 20% once valuations get to 13x forward earnings. Two questions, 1. what do you think about this idea 2. In case I have missed some ideas, what are 5 Canadian names outside of the banks you would recommend with decent valuations? Thank-you.
Read Answer Asked by Albert on April 29, 2019
Q: I am looking to. Build a dividend paying portfolio consisting of 15 can stocks. I already have rbc, td , enbridge, bce Telus pempina ,vermillion , Northland Power, Algonquin and inter pipeline
Can you please recommend a few others to add
Thank you
Read Answer Asked by Michael on April 29, 2019
Q: I hold both VEE and VEF in a Cdn dollar trading account,; given that we are unlikely to see any substantial appreciation in the Cdn $$ for a while, is that a duplication, and if so, would it make more sense to just keep the unhedged version?
Read Answer Asked by steve on April 29, 2019
Q: I'm interested in adding either one of WCN or BYD.UN to my RRSP account for a five year hold. Basically I'm not that keen about the yield, but growth is the emphasis. Which one of these two would you recommend under that circumstance?

Thanks for your insight.
Read Answer Asked by Victor on April 29, 2019
Q: Can you educate me about this company and fund? It is showing low average double-digit returns for the past 6 years. Would this include ROC or do they use derivatives? They refer to a base annual rate of return plus an amount for "profit share". What is this amount referring to? I don't need the income now but I will in two years. Is this a product I would only purchase then, use as a bond proxy now or stay away from it completely?

Appreciate your insight.

Paul F.
Read Answer Asked by Paul on April 29, 2019
Q: I am overweight quite a bit in Enbridge and since I am underweight in Telus I am will be selling some Enbridge to cover the cost of buying Telus shares. What % would be the maximum for holding ENB? I am looking at replacing Enbridge with other dividend paying stocks and could you tell me what other dividend stocks would be a good replacement for Enbridge. ( do not need any in the energy or utilities sector)

Thanks
Read Answer Asked on April 29, 2019
Q: In completing the initial questionnaire for the portfolio analytics exercise, I enter my current status as retired. The next question is my "salary" followed by my pension amount. Since I'm retired, I enter my salary as "0", then enter my pension amount in the following line. Upon moving to the following page, the program asks me to complete answering the salary question, as if "0" was not a valid answer. If I enter a salary figure equivalent to my pension amount, the program accepts this answer. How do I answer the salary question correctly when not working and hence not collecting a "salary"?
Read Answer Asked by Jim on April 27, 2019
Q: Portfolio analytics says I am low in healthcare so that means pretty much US companies. I already have 3.5% in Abbot but see you referring to Medtronic as attractive quite often. Since they are both in the medical device category, does this make buying MDT to similar of a purchase to ABT? Would I be better switching to MDT or look at something else in the sector. Some capital gains if I do switch.

Thanks for the great service.
Read Answer Asked by David on April 26, 2019
Q: Hi all,

I had limited Healthcare exposure (only from small positions in VXUS and VGRO). Recently added Abbvie and Pfizer on price weakness. Combined these 2 equal about 5% of my Holdings.
3 questions:
1-Comments on ABBV latest quarter? (Seems good)
2-Good Entry point for these companies for a long term hold?
3-Do these 2 companies compliment each other well or should I consider adding another stock or ETF for more Healthcare exposure?

Thanks as always for the great service!
Read Answer Asked by Stephane on April 26, 2019
Q: Hi Peter/Ryan can you tell me if there is benefit or a drawback in holding a trust in a TFSA more specifically BAM or BEP.UN. I was thinking of adding one of these. Which would be a better addition to a TFSA to reap the greater reward. Thanks, Nick
Read Answer Asked by Nick on April 26, 2019
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