Q – After reading Sleep-Easy Investing and several other books, I decided to invest some money in the TD Monthly Income Fund within my TFSA. The monthly return on $5,000 is about $13. I researched similar products at other banks. One in particular to me seems a much better value: BMO Monthly Income. The same $5,000 initial investment will net me $34 a month. The share price is rough half of the TD fund, so I repurchase more shares every month. After many phone calls, no advisor at TD can give me any reason why their fund is better. I seem to know more about the fund, sadly. Can you advise why one would pick one over the other? – Paul N., Ontario

Q – I am 82 years young. I own a mortgage-free house but would like to take on a mortgage to pay off my debts. I have heard that I can ask for a mortgage on my house where I do not have to pay instalments. Can you please guide me as to where and how I can get this? Thanks for your advice. – Dave M., Ontario

Q – If I have my TFSA account in a GIC, say for one year, and I remove my money within eight months instead of the end of the year, do I lose any of the interest or do I pay any fine? – George N.

Q – We have approximately $300,000 in RRSPs in Canada. We became U.S. citizens 20 years ago. We would like to pay our mortgage off with these funds. What is the process and the “good and bad” of doing it? – Rick S.

Q – I earn $40,000 a year, and with a company pension adjustment amount of $4,900, it leaves me with an RRSP deduction limit of just $2,300, which I max out. Since there is $2,000 overcontribution room, is it worthwhile to overcontribute by that amount (to $4,300/year) when the $2,000 is after-tax dollars and will be taxed in the future when withdrawing?

Q – The advisory fee on my $600,000 portfolio is $418 every three months. Is this amount satisfactory? – Ron L., Ontario

Q – My uncle (a widower) is in good health but will be leaving me his home and all the money upon his death. Every time we do something together, he wants to pay for all of the activity and says, “It will all be yours anyway.” I love my uncle and hope he lives a long time. But should/could he be doing anything to reduce taxes on my inheritance down the road? (He seems to be making more money than he can spend with his investments.)

Q – I just read your book 6 Steps to $1 Million and found it very informative. A lot of my current fears about retiring and investing have now evaporated. I’ve actually been revitalized by the advice given in this book. Looking forward to reading more of your books. It was definitely a “can’t put down” book.

Q – My RRSPs have to be converted into another investment vehicle. Is a RRIF the best place to invest my money or is there a better investment? As for taxes, will I pay taxes only on the amount I withdraw, and what is the minimum I can withdraw? – Ronald S., Ontario

Q – Could you recommend an ETF that trades on the New York Stock Exchange that is similar to the XBB ETF that trades on the Toronto Stock Exchange? – Jim B., Nova Scotia

Q – I would like to start investing in mutual funds. However, I would like to invest in them with a recurring fixed-dollar amount, preferably monthly or weekly. I have heard that you can set this up with certain funds to automatically deduct the money from your bank account, but my worry is that the transaction fee will be charged every time I make a purchase. Could you point me to any resources that could show me the cheapest way to do this? I’m young and do not have too much money to spend, and $30 or so per transaction will negate all my chances at building wealth. – Michael L.

Q – I am a low-income earner, age 55, saving my emergency money in a TFSA. Would I be better off if I place my emergency fund in a money market fund (even with an MER) or keep it in the high interest savings account? – Ray N.

Q – How are interest income, dividend income, capital gains, and capital losses handled within a Tax-Free Savings Account? Are capital losses within the TFSA handled exactly like RRSPs? – Paul W.

Q – I am a widow, age 62. I am employed and have an annual income of $50,000. I have two children who are the beneficiaries of my estate. I have about $200.000 in RRSPs and own a condo with no mortgage, which is valued at approximately $250,000. Is there any way of avoiding estate taxes on the RRSPs upon my passing? I have no other investments. Would having a first right of survivorship help? – Marsha N.

Q – I have just retired and have an RRSP for myself and a spousal one for my wife. Can I combine the two and draw on it? If I can’t do that, do I withdraw the minimum amount on one fund at a time? Does this start when I am 72? I was reading that it would be best to wait till December of that year to start. – Joe

Q – What money I have is in a joint account with my daughter. I own a small amount of furniture and a car. Do I need a will? I have no other possessions. – Larry S., Nova Scotia

Q – I have read your book, The Ultimate TFSA Guide. I am not clear on one item. I understand that if you withdraw an amount of money from a TFSA, it can be deposited back into the account on Jan. 1 of the following year. However, if you originally deposited $5,000 and it grew to $5,500 and you withdrew that amount, can you deposit $5,500 plus the next year’s contribution limit (i.e., $5,000) on Jan. 1 of the following year? Hence, whatever amount you take out, can you put back the exact same amount into the TFSA account no matter how much it had originally grown? – Sandy K.

Q– I am planning to purchase a retirement home for the winter months in Spain. In the meantime, is there a way I can invest in mutual funds in euros? The currency looks like a bargain at present. – Edmund L., Etobicoke ON

Q – My wife and I subscribe to the Income Investor. We find it very helpful. Earlier this year I transferred 25% of my new life income fund (LIF) to my RRSP. (This was in response to an initiative by the Financial Services Commission of Ontario.) My financial institution issued an official tax receipt for a contribution to a retirement savings plan. Should the institution have issued this receipt, since on the face of it, my RRSP contribution room is thereby reduced? In addition, it strikes me that I previously received a reduction in my taxable income when the funds were originally contributed to the LIF. Thanks. – David M., Ottawa

Q – In recent weeks I have listened and read about what Robert Prechter has to say about the markets. He appears to be a very level-headed fellow, and his arguments come across pretty sound to me. When you look at the market graphs as a whole and the graphs of many equity mutual funds, they all display the same sort of pattern, i.e., a peak having been reached in about early 2009, a secondary lower peak that has just passed, and now we are in the resumed down leg. This larger picture seems to jibe with what Prechter is saying. What do you think? – Paul M., Greytown, New Zealand

Q – I understand that our Old Age Security pension will be clawed back if our earnings are too high. We are considering withdrawing all our RRSP savings (not spending the money) before age 65 to reduce or eliminate the clawback. We plan to retire at 60. Any advice? Thanks! – Randy and Pat, Alberta

Q – I read your article on the TFSA mess. I concur with your recommendation: “Change the rules. To avoid confusion in the future, scrap the rule that defers new contribution room on withdrawals to the next calendar year. Allow money taken out to be redeposited at any time. Surely the computers can cope with that.”

Q – I have benefited from being a long-time subscriber to your newsletters, and my list of holdings has grown large. Is there a consensus as to the optimum number of stocks, funds, etc. held either in absolute number or based on the dollar value of the holdings? – Don W.