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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: RRIF - I have to convert my RRSP to a RIF by the end of the year. My broker is TDW. TD Canada Trust, their agent, wants me to make the minimum withdrawal on a regular schedule ie monthly, quarterly etc.
I want to make the withdrawals on an as required basis, subject to the annual minimum, to help with my overall cash flow demands.
Is there a legal requirement to do it TD's way?
Thanks
Read Answer Asked by David on October 17, 2016
Q: Hi 5i Research team , I have now limited capital to invest relative to the size of my overall portfolio. I am a long term investor with long horizon and I am relatively satisfied with the quality of the stocks in my portfolio. I have recently mainly used margin, cash from takeover, overweight reductions, dividends over margin's interest and small personal cash contribution to refund the margin used and to make new investments. I am currently fully invested and, I intend to mainly invest in a prepared in advance short list of companies when there is broad stock market corrections (10%ish) that I expected every sx to ten months. Could you comment on this strategy, its merits and weaknesses? Am I forgetting something? Thank you, Eric
Read Answer Asked by Eric on October 14, 2016
Q: Peter and Team,

My total portfolio is approximately 5% Gold Bullion, 9% Short term bonds (Brookfield Infrastructure 5 year and CBO), 86% Equity. The equity exposure is currently 7.5% in US Stocks (JNJ, SBUX, XYL, V) and 78.5% Balanced Equity Model Portfolio.

I was thinking that I am missing international exposure and am thinking that I should be adding some sort of ETF for this. I originally was thinking of building a portfolio including Nestle but I think that the weighting will be too small to build individual positions.

Can you please provide your ideas for ETFs that would provide international diversification given my current holdings and, if possible, any weighting I should be aiming for in terms of international position? I would describe myself as very much in line with the risk profile of the Balanced Equity portfolio.

Thanks!
Read Answer Asked by Marc on October 13, 2016
Q: Hello 5i,

Please provide your opinion on the BMO "Blue Chip GIC"
It offers 100% capital protection + 1% rate of return (total over 5 years) and a 100% participation in the S&P TSX Low Volitility Index.
I have seen many equity linked GIC's before but never with a 100% participation.
Fine print indicates that the maximum allowed by law is an average of 60% per year. The negatives I can see with this;
Possible opportunity loss of only a total guarantee of 1% over 5 years.
Money is locked in for 5 years.
Returns will be considered as interest not capital gains, so it would only make sense in a RRSP and or TFSA.
Is there anything else I am missing here?
Thanks,

RD
Read Answer Asked by Randy on October 11, 2016
Q: What's your advice for a younger investor with regards to TFSAs and RRSPs versus non-registered accounts? Should we direct all our savings to registered accounts until we max out our contributions and then direct excess to non-registered accounts? Is there a case to be made for the tax-loss advantages of non-registered accounts before looking at RRSPs? I see TFSAs as a more liquid savings account and an RRSP as much less so. Thanks.
Read Answer Asked by Jordan on October 11, 2016
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