Stocks - The Best Buys 2

[Azure]

Should have just invested in Tesla people.

Remember when it was $178 and everyone was saying the company is doomed?

Now, not even a year later suddenly the company is the darling of Wall Street. Except for the shorters getting screwed over of course.

Just goes to show how bloody clueless the analysts are.

[DoubleK]

Originally Posted by Azure

Should have just invested in Tesla people.

Remember when it was $178 and everyone was saying the company is doomed?

Now, not even a year later suddenly the company is the darling of Wall Street. Except for the shorters getting screwed over of course.

Just goes to show how bloody clueless the analysts are.

Didn't Elon get fined for musing about taking it private at $420?

[Azure]

Originally Posted by DoubleK

Didn't Elon get fined for musing about taking it private at $420?

He sure did. $20 million.

Now it is at $430.

I don't think it would be wise to take it private with the run it has had.

[Resolute 14]

Well, less wise and more that he likely can't afford it.

[1qqaaz]

Originally Posted by Enoch Root

sa226: You make some good points.

One thing people like about dividends is that they provide more consistent, less volatile returns (which is part of what you were saying). And they allow for reinvestment, which can be a means of further diversification.

At an aggregate level though - and theoretically - investors should be indifferent to dividends (pre-tax), because it comes down to 2 choices: either the company retains its earnings, and reinvests the money; or it pays out a dividend and the investor then has to reinvest the money in another company.

But in practice, it is a little more complicated than that because different companies, of different sizes, in different geographic locations, and in different industries with different products or services, are going to have different return expectations. Also, different dividend strategies can send different messages to investors.

However, if we consider a simple, long-term investor, who's goal is to maximize long-term return, then they should be dividend averse. Because of taxes. Of course, if all of your assets are registered, then taxes don't matter. But when taxes do matter, dividends should always be an inferior strategy to capital gains (all else equal), because they incur a higher tax drag. And the more you can reduce turnover, the greater that tax drag differential will be.

Would you recommend, as a general rule, holding dividend stocks in the TSFA or RRSP, while keeping the capital gain stocks in other accounts?

[Johnny199r]

Originally Posted by 1qqaaz

Would you recommend, as a general rule, holding dividend stocks in the TSFA or RRSP, while keeping the capital gain stocks in other accounts?

Canadian stocks in your TFSA = no tax

American stocks in your TFSA = 15% withholding tax

Any stocks from anywhere in the world in your RRSP = no tax. Until withdrawal, of course.

[Slava]

Originally Posted by Azure

Should have just invested in Tesla people.

Remember when it was $178 and everyone was saying the company is doomed?

Now, not even a year later suddenly the company is the darling of Wall Street. Except for the shorters getting screwed over of course.

Just goes to show how bloody clueless the analysts are.

To me it's not about how clueless analysts are though. It's impossible to really know how things go with Tesla. I wouldn't be shocked if they went bankrupt, but I also wouldn't be shocked if they became enormous. It's really so difficult to value a company where Musk is running around spouting bizarre statements and allegations against people and then willfully violating SEC regulations at other times.

Frankly, when they came out with a profit out of nowhere last quarter, it just made me skeptical. I don't know what games are being played behind the scenes or how they managed to suddenly show that. I'm also not delving into it and trying to figure it out. If that means I kiss an opportunity, so be it. There are plenty of other companies to invest in.

[Jason14h]

Originally Posted by Azure

Should have just invested in Tesla people.

Remember when it was $178 and everyone was saying the company is doomed?

Now, not even a year later suddenly the company is the darling of Wall Street. Except for the shorters getting screwed over of course.

Just goes to show how bloody clueless the analysts are.

For a long time you would have made a fortune shorting Tesla.

Tesla returns over the last 5 years isn’t anything to be too excited about vs the market

Sure if you bought at the low of $170 this year you’re doing great! But if you shorted down to $170 you are also laughing to the bank

[TorqueDog]

Originally Posted by DoubleK

Thanks for your post. Sorry it took me so long to respond, life got in the way.

Originally, I was just investing with TD through a normal RRSP/TFSA account through my branch. Last year, I was approached by their wealth planning arm through TD Waterhouse to move my accounts there. I was under the impression that it was self-directed with more flexible options interms of my investments, ie not limited to their e series mutual funds. I subsequently found out that TD Financial Planning (which I have) and TD Direct Investing are separate entities. My advisor has to make all changes to my account, I don't have the ability to do it myself, I can't even add to my monthly contributions without contacting them, something I was able to so before.

I'm not looking to day trade or even buy individual stocks. Just simply limit my fees and index the cheapest way possible. I'm adding about $1500 a month combined between TFSA/RRSP.

What platform should I be looking at?

What are you looking to invest in and how do you want to use the account? ETFs? Mutual funds?

If you want to buy index ETFs, Questrade has $0 commissions to buy ETFs, but standard commissions to sell ($0.01 per share, minimum of $4.95 to a max of $9.95) (pricing). And if you want to invest using margin, you can use the balance in your TFSA as buying power in your Questrade margin account.

[Johnny199r]

Everybody max out their TFSA for the year with a $6000 contribution today?

[Fire]

Originally Posted by Johnny199r

Everybody max out their TFSA for the year with a $6000 contribution today?

Thanks for the reminder. Probably the best thing the Conservatives did when they were in power. This helps low to middle income individuals so much, people really need to take advantage of it.

[wwkayaker]

Originally Posted by Johnny199r

Everybody max out their TFSA for the year with a $6000 contribution today?

Done.

[Slava]

Originally Posted by Fire

Thanks for the reminder. Probably the best thing the Conservatives did when they were in power. This helps low to middle income individuals so much, people really need to take advantage of it.

I think these accounts are so brilliant. I do wish they named them "Tax Free Investment Accounts" just because too many people have them purely as bank accounts, but that's relatively minor.

[OMG!WTF!]

Originally Posted by Johnny199r

Everybody max out their TFSA for the year with a $6000 contribution today?

You can carry over to the next year can't you? Like contribute 12k this year?

[nik-]

Originally Posted by Slava

I think these accounts are so brilliant. I do wish they named them "Tax Free Investment Accounts" just because too many people have them purely as bank accounts, but that's relatively minor.

That was me for the first 4 years. I was pretty angry when I found out.

[Johnny199r]

Originally Posted by OMG!WTF!

You can carry over to the next year can't you? Like contribute 12k this year?

You can carry over unused contribution room from any previous year.

[Johnny199r]

I wish the $10,000 limit wasn't reduced.

I also hope the gov't doesn't ever change it's mind about not touching this money. I could see a "eat the rich" gov't going after this revenue source someday.

I've seen a few predictions that the tax rate for capital gains in non registered accounts is going to be raised this year.

[Calgary14]

Cumulative TFSA contribution room is $69,500 for those who have it available

[TorqueDog]

Biggest complaint about the TFSA is how I can't hold short positions (including cash-secured puts) in one, need margin for that.

[puckedoff]

Originally Posted by Calgary14

Cumulative TFSA contribution room is $69,500 for those who have it available

That's just the max though, for people who were age of maturity when it was rolled out. A 20 year old today doesn't have that much room.