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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: AMF who wrote (5667)	8/31/1999 11:22:00 AM
From: Uncle Frank	Read Replies (1) \| Respond to of 54805

Thanks for the compliments to the thread, AMF and Sunny. I'm glad to have you both contributing to our think-tank. The Canadian government seems to make it extremely difficult to be an international investor. A 1%/mo. penalty is about the same as financing your portfolio through a credit card. But some of your neighbors, Teflon and Mariner for example, seem to have found ways to alleviate the problem. I'd suggest you contact one of them by PM to see how they minimize the impact of the punitive tax. Frank

To: AMF who wrote (5667)	8/31/1999 4:33:00 PM
From: david barr	Respond to of 54805

OT Canadian Investor Hi AMF, I have found no way around the 20% limit Set by the Canadian government. Are you aware that the 20% is allowed to grow to any portion of the RSP portfolio without you having to readjust? ie.. make the Q 20% and then hang in there for years. When you sell you will have to readjust to 20%. This gives me some sense of consolation. I also use the US index futures fund from TD to top up foreign content. You are eligible to put 100% in there and it copies the S&P 500. Good Luck, Dave

To: AMF who wrote (5667)	8/31/1999 7:01:00 PM
From: Jean M. Gauthier	Read Replies (2) \| Respond to of 54805

Hi fellow Canadian... Option 1: Buy LEAPS for the 20% foreign content, that maximizes the foreign content about 3 for 1. Cost of LEAP is about 1/3 that of the common. Option 2: Same as #1 but buy a shitty Labor sponsored fund, and that can increase your foreign content to 40%, and buy the LEAPS then. Option 3: Option 1 + 2 + this one = Do 1 and 2 and then buy CIBC US RSP Index for the other 60%-80% that has to stay canadian owned. The advantage of the US RSP Index is that 1- it is the only one with a currency component, as the shitty canadian dollar goes down, this fund goes up 2- It is a S&P 500 index fund with .9% MER, better than most canadian funds. That will give you a 100% Foreign content RSP, without penalties. If you live in Ottawa, I want a coffee for my advice (admittedly amateur <smile>).. Take care Jean

To: AMF who wrote (5667)	8/31/1999 9:23:00 PM
From: Thomas Tam	Read Replies (1) \| Respond to of 54805

Being Canadian ... does make it difficult to capture these gorillas in a tax deferral system. If you don't intend to trade your gorillas, would you not be participating in tax deferral simply by waiting until you need to sell. The RRSP is a good system for trading to make tax free capital gains, but with the GG, there isn't a need to trade frequently. I would buy JDU for the king in the RRSP and use my 20% for Q. In another cash account, I would just buy Q and hold. If you intend to wait, you don't pay tax until you lock in gains. For the Q, I don't see a need to sell at least for 5 years, and by that time, a hefty appreciation should have appeared. Also, to participate in LEAPS, you need a margin account, which can not be a RRSP, I believe. So, that's my plan, buy JDU for Canadian content, and the rest is Q. As per GG, there is no need to diversify. Just my 2 cents Later