skip to content
  1. Home
  2. >
  3. Investment Q&A
You can view 3 more answers this month. Sign up for a free trial for unlimited access.

Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: I would like to add a comment in response to the question on Manulife's Income for Life offer from Dave. I am a financial advisor who recently dealt with this issue with an inherited client who had both a registered and non-registered Income for Life product. Some considerations to keep in mind is that the "top up" offer for non-registered plans is fully taxable. In my client's case, we determined that the non-registered offer didn't make sense but that the one for the registered plan did, as there was no taxation and it does not affect the client's RRSP contribution room. In my experience, when an insurance company wants to get out of a product, take a hard look at it because it usually means it is favouring the client too much (but not always, of course). Income for Life is meant to provide not only income for life but guranteed growth in the base amount as well. In Dave's case, the low growth in his capital to date is because of the investments he chose to be in - there is a wide range of investment choices so if the time frame is long enough, he may be able to grow that value. These products are not for everyone but the offer should be examined carefully with the taxation issue in mind. Hope this helps.

Paul F.
Read Answer Asked by Paul on December 05, 2018
Q: I’m curious about IFOS. A guest on BNN recently described it as a smaller but more promising alternative to NTR. It’s selling for about $1 as I write this but it used to trade close to $400 per share. I certainly wouldn’t mind owning a 400-bagger, if possible, but before I step in I’d like to know what caused the overwhelming loss of value as well as your general opinion on this company and its outlook. It hasn’t stopped falling in price and the P/E is only around 2 (according to Google). Isn't it a red flag when the multiple is so low?

Also, the guest said that NTR wouldn’t do well in a recession and I’m wondering why and whether the same would be true of IFOS.

Please deduct as many credits as necessary. Thanks very much for your comments.
Read Answer Asked by Brian on December 05, 2018
Q: I have significant losses on above names in my TFSA (Loss, Allocation, My Avg Price):
TSGI -49.20% , 7.10% , $49.48
WCP -47.83% , 1.70%, $. 8.70
WEF - 30.85% , 2.3 % , $. 2.62
NFI. -30.30% , 2.8 % , $. 51.81
PBH. -28.23% , 5.0% , $11.46
Other names in TFSA well diversified based on 5i Balanced portfolio with losses under 10% and some with gains.
Would you recommend buy to average down or any other changes.

Thanks in advance for your valuable advice
Read Answer Asked by Hali on December 05, 2018
Q: Hi
Please help me understand this. What is the net difference between $1 in dividend from an eligible Cdn. company ( eg. ENB) vs. $1 “ dividend “ ( dividend and ROC) from a pure play Cdn. ETF ( eg. ZWU) ? Assume a non- Registerred Account that pays no tax.
Read Answer Asked by Frank on December 05, 2018
Q: Given the current volatility in the market there are a lot of analysts heads making bold predictions. Recently I heard one analyst say that "historically double peaks in a period of heightened volatility signals the end of a bull market". You've taught me there is always an opposing view-so is this statement simply that or is there some credence to it. Thanks for all you do.

Glen
Read Answer Asked by glen on December 05, 2018
Q: Hello Peter,
There have been many short sellers in the last few years in health care and now in Cannabis stocks. At this point, time will tell on Aphria, but for others like Valeant etc the short sellers were correct. I find it interesting that the brokerage firms, and analyst that covered these companies gave high marks and all of a sudden with a short report, they either revised their price targets or put out a release that the stock is under review rather than defend their own analysis. I am starting to question the analysis that is done by Canadian firms and their ratings. How is it that the short sellers are able to find things that the analysts covering these companies have not managed to even come across? Can you please comment as this is getting ridiculous when analysts and BNN Guests talk highly of companies and than we find out the shortfalls in these companies. Where is the accountability on these analysts and brokerage firms that put out good reports? Thanks very much
Read Answer Asked by umedali on December 05, 2018
Q: With the 10/2 year treasuries spread now at 0.11 for December 4, 2018. Would it be prudent eye up good quality stocks, in preparation of a recession coming?
And is this something you are watching?
Read Answer Asked by Barry on December 05, 2018
Q: We recently received a letter from Manulife with an offer to buy out our Annuity contract with Income Plus. Rob Carrick had an article on the offer in the Sept. 22 issue of the Globe and Mail. I would like to ask your opinion. My original investment was 175,000, purchased in May 2008. Recent market value was about 217,000, for a some what dismal return of less than 2 percent. These types of fixed annuities have some guarantees, but are complex and very hard to understand. The buyout offer is 37,000 and Manulife would add that to our present market value and roll over our contract into a newer segregated annuity product with lesser benefits. It looks like we have 3 options: 1)leave our contract as is with Income Plus 2) accept the bonus and move our market value into their new and watered down annuity version 3) Take the bonus and cash out of Income Plus at market value.
In recent weeks, I have done an internet search on this type of annuity and now see some limitations that were not fully understood when we originally purchased: the very high fees, now about 4%; a lack of inflation protection; a declining insurance coverage as well as a declining principle, which will both go to zero if I live to a ripe old age. The guaranteed income for life, which is 13,400.00 per year for me, no longer looks so appealing, as I wish to leave something in my estate for the family.
The intent of the original purchase was to act as a pension as I am self employed ( rancher) and have not paid much into CPP.
Do you think that a basket of conservative blue chip dividend stocks and reits, might be a better choice, if we take the option to cash out and reinvest? We are not fans of USA companies, but realize that many of them are international in scope.
Thanks, Dave Bober





Read Answer Asked by Dave on December 05, 2018
Looking for more? Sign up for a FREE 14 day trial! No credit card required

We invite you to sign up for a 14 day free trial of 5i Research!
Experience all the benefits and tools we have to offer; stock research, model portfolios, Q&A with our experts, and so much more. Join a community of like-minded investors today!