Q: I am puzzled about the fact that some mortgage lenders offer as low as 1.9 to 2.1% mortgage rates. Why would someone lend money as such a low rate, when you can get more (and garanteed) investing it with a CDIC backed GIC. If the amount is huge and not covered by a set of CDIC accounts, such a lender could get the same yield from a short-term bond ETF like ZCS. My theory is that those lenders hope that a small percentage of their borrowers fail to carry the mortgage, in which case, they somehow profit from re-possessing a house that has appreciated in price. If that is not something a lender can do, what am I missing? Thank you.
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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: Do you think fairfax is at good value with the recent sell off.i have some at 600 i was thinking of averaging down on it Thank you
Q: Doc as many questions as required....
I am looking at moving out of a managed portfolio for which I pay about 1.5% management fee plus the fees for the products in the fund ( averages about 0.29% for a net of about 1.79%). The managed fund has not beat its benchmark net of fees in last 5 years so I am giving my manager and the product the boot.
Main reasons are:
1. I am paying for an "actively" managed fund that really is performing like a index fund ( I can buy the fund benchmark as ETFs for %0.23 mer)
2. I dont really need it to be balanced due to my other investments. It was useful when I had less money, less time and less knowledge.
3. I have the time, temperament and knowledge to move it all to be self managed
My plan is:
1. Not have any fixed income holdings as my wife's federal government pension counts for all required fixed income/bond. It is also the anchor that allow me to be more aggressive with our other investments
2. All Canadian exposure will be via stocks loosely following your balanced equity portfolio.
3. For the US-global exposure I am considering adopting the US/global portion of the CME ETF portfolio with the following weighting: 10% VEE, 10% VE, 20% SPY, 25% VIG, 25% IWO, 10% ZWU. ( ie cut out most CAD and bond stuff and kept the same weighting as CMS portfolio for the rest)
4. Simplify the number of products I have across multiple account. In other words balance globally vs balancing within each individual account.
So my questions are:
1. At a high level what if any changes would you suggest to this approach
2. My portfolio is a mess with multiple products across TFSA, RSP, RESP, and unregistered accounts for both me and my wife. Very generally can you remind me which products should be in which account for tax efficiency.
3. Any suggestions on how best to transition...general plan is all new money goes to ETFs, move 1/3 each year out of managed fund to ETF portfolio.
Tom
I am looking at moving out of a managed portfolio for which I pay about 1.5% management fee plus the fees for the products in the fund ( averages about 0.29% for a net of about 1.79%). The managed fund has not beat its benchmark net of fees in last 5 years so I am giving my manager and the product the boot.
Main reasons are:
1. I am paying for an "actively" managed fund that really is performing like a index fund ( I can buy the fund benchmark as ETFs for %0.23 mer)
2. I dont really need it to be balanced due to my other investments. It was useful when I had less money, less time and less knowledge.
3. I have the time, temperament and knowledge to move it all to be self managed
My plan is:
1. Not have any fixed income holdings as my wife's federal government pension counts for all required fixed income/bond. It is also the anchor that allow me to be more aggressive with our other investments
2. All Canadian exposure will be via stocks loosely following your balanced equity portfolio.
3. For the US-global exposure I am considering adopting the US/global portion of the CME ETF portfolio with the following weighting: 10% VEE, 10% VE, 20% SPY, 25% VIG, 25% IWO, 10% ZWU. ( ie cut out most CAD and bond stuff and kept the same weighting as CMS portfolio for the rest)
4. Simplify the number of products I have across multiple account. In other words balance globally vs balancing within each individual account.
So my questions are:
1. At a high level what if any changes would you suggest to this approach
2. My portfolio is a mess with multiple products across TFSA, RSP, RESP, and unregistered accounts for both me and my wife. Very generally can you remind me which products should be in which account for tax efficiency.
3. Any suggestions on how best to transition...general plan is all new money goes to ETFs, move 1/3 each year out of managed fund to ETF portfolio.
Tom
Q: Good morning team, can you comment on FM. Is it a buy here?
Q: Hello,
what do you make of NYX debt refinancing.
thanks
what do you make of NYX debt refinancing.
thanks
Q: Hi Great Service With ETF's gaining popularity and taking over from mutual fund investments ,how will they react with a 30 to 35% correction to the market? These investments have not been tested in a mass sell off. Question is about ETF's on the US and Canadian Markets
Q: Results
Q: Hi 5i, I own IPL since March 2005 in my RIF at cost of $9.63 so I have seen its ups and down for long time but now I am not so sure if I want to keep it, I am thinking of switching to CPX, similar price and dividend, what do you think of the idea or do you have any other suggestions for me. Thank you for your valuable service. M
Q: 5i
I am 75 years old and have $30,000 DOLLARS of cash in both my TFSA and my wife's TFSA. Regardless of sector weighting how would you invest the funds. Great service you provide for both the educated and less educated investors.
W
I am 75 years old and have $30,000 DOLLARS of cash in both my TFSA and my wife's TFSA. Regardless of sector weighting how would you invest the funds. Great service you provide for both the educated and less educated investors.
W
Q: for my sons RESP can I get your opinion of the 3.25% 5 year GIC being offered by Home Capital? The amount is far below the $100,000 threshold.
Is a safe 3.25% a reasonable rate of return for an RESP that I need in 5 years time? Alternatively, would I be better to off with the investment strategy your team outlined which would have a higher potential yield but principle risk.
Your thoughts are appreciated,
Don
Is a safe 3.25% a reasonable rate of return for an RESP that I need in 5 years time? Alternatively, would I be better to off with the investment strategy your team outlined which would have a higher potential yield but principle risk.
Your thoughts are appreciated,
Don
Q: Historically you have like the two silver companies. Do you still like them and what do you think of the space?
Q: Hi Peter and team,
My question is about BLVD Centers Corporation formerly name Convalo Health International. What is their business model and are they making any money. What is the future in the industry?. Is it a takeover candidate due to low debt and I believe they have cash in the bank. Kindly let me know. Thank you.
Norwood
My question is about BLVD Centers Corporation formerly name Convalo Health International. What is their business model and are they making any money. What is the future in the industry?. Is it a takeover candidate due to low debt and I believe they have cash in the bank. Kindly let me know. Thank you.
Norwood
Q: Can you comment on this very small cap 56 M company, worth to look at it ?
Thanks as always,
Tak
Thanks as always,
Tak
Q: Hi, I am looking to pick either ENB or ALA for utility sector. from dividend and valuation perspective, ALA looks far more attractive.
I would appreciate if you can provide a comparison of the two and your preference.
I would appreciate if you can provide a comparison of the two and your preference.
Q: What do you think of SDIV as an income and diversity vehicle?
Thanks
Don
Thanks
Don
Q: I have some room for a small cap growth stock.
Thinking of itc or pho....or would you have other suggestions.
Why in the case of itc and pho would you prefer one over the other?
Thinking of itc or pho....or would you have other suggestions.
Why in the case of itc and pho would you prefer one over the other?
Q: Hi 5i team,
Costco has been taking a beating ever since Amazon announced its bid for Whole Foods Market (WFM) three days ago. At the time, it was selling at a premium but today it dropped well below its 200 MA. How much lower would it have to go before you would consider it an attractive buy?
Somehow, I don't see an Amazon-WFM tie up as being particularly threatening to Costco. I would appreciate you view on what the impact might be?
Robert
Costco has been taking a beating ever since Amazon announced its bid for Whole Foods Market (WFM) three days ago. At the time, it was selling at a premium but today it dropped well below its 200 MA. How much lower would it have to go before you would consider it an attractive buy?
Somehow, I don't see an Amazon-WFM tie up as being particularly threatening to Costco. I would appreciate you view on what the impact might be?
Robert
Q: Hi there, I currently only own Canadian equities and am thinking of investing in a few US companies for diversification. What would be your top 3 ideas from the US that would be good additions to your Balanced Equity portfolio? I am okay with names with a tilt towards growth but not super high risky - probably similar to names to CSU, SHOP, KXS, SIS, NFI, TOY, PBH etc.
Thanks!
Thanks!
Q: I own 3000 shares of Neulion NLN bought at $1. At the current low price of the shares at $.60 I am tempted to average down.What would you do? Are the fundamentals sound?
Q: What's happening to CLS.It is recovering after initial big drop.Thanks for u usual great services & yields