Comments on Triaging My Way To Financial Success: Value Update I, 2009:

I hold my non-Canadian fixed income, preferred sha...

2009-03-14T17:01:00.000-04:00

I hold my non-Canadian fixed income, preferred shares and common shares within my RSP.

The benefit is that the US withholding tax (15%) does not apply and I retain my full dividend/distribution. For the moment I haven't had any problems.

For Canadian preferreds I'm currently holding an issue from Brookfield, Enbridge, Power Financial, Westcoast Energy & a SplitCorp from Life & Banc (LBS.PR.A).

For currency risk I have a hedging policy within my RSP to help offset any appreciation/depreciation of the Canadian Dollar. That post will appear in the future on this site.

what is the tax implication on those Banco Santand...

2009-03-14T16:01:00.000-04:00

what is the tax implication on those Banco Santander preferred shares??

I am assuming you are buying them as ADR's on the New york stock exchange.

Since the payments are "dividends", and not interest, as they are on a regular corporate bond....I can also assume that the payments would be subject to the 15% withhiolding tax levied by the US govt.

As well they would be treated as regular income here in Canada, and subject to your hightest marginal tax rate.

Also you are taking currency risk into the equation!

Maybe buying a canadian prefeered issue such as Brookfield Asset Mamnagement might be a better choice.,,,,,what do you think?

That's my problem as well. If I'm going to do it I...

2009-03-06T18:53:00.000-05:00

That's my problem as well. If I'm going to do it I want to have enough capital to diversify among 4-6 bonds minimum. That would be more than my entire FI allocation at the moment (not including my immediate savings). This is a great opportunity to learn potentially like I did back in 2000-2002 before I began seriously investing in equities.

Looking forward to your bonds post. I'm looking mo...

2009-03-06T16:50:00.000-05:00

Looking forward to your bonds post. I'm looking more into it but I too dont have enough cash to buy several bonds.