Self-Directed Tax-Free Savings Accounts
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In this post, I have put together a detailed checklist on what you have to do to make this process as painless as possible. My wife and I have 9 accounts. I put together this list after my recent transfer experience.
It was five accounts and it was a ton of work. A great list Ram. Your Blog has helped me a lot. BOM Investorline is a broker I used in the past. They reneged on paying transfer fees after promising to cover the same. These are visible on the website but missing from statements. The only solution is to record the book values at year end from the website manually. In this day and age why brokers elect not to give out information to investors is a mystery to me I am happy with TD because they give out all info and have the best markets and research section rajeev.
The list is a good one but be very careful that everything follows you, I transferred to td, took months and so many calls and wasted hours to get things right. Everything from transfers into the wrong accounts to items left behind. So, again be very very careful and make sure it is worth it to you. I went from full service to self directed two different brokerages and it was a complete nightmare. I have clients who I have referred to QTrade for trading they want to do on their own.
They are usually rated at or near the top in surveys. You should look to see if they have what you need. Transferring GICs can be a bit tricky. Also, I think that it is best to keep your life savings in a well-capitalized entity even if segregation offers a lot of protection even at smaller players. Thanks for your insight into transferring GICs. Good point to check assets are transferable first before proceeding.
What is your experience so far? I plan on being a passive investor. During the transfer process, do customers have access to the assets being transferred? If not, what can clients do if they need urgent access? To add a few points, 1. Because of how contribution limits work if you are in the last couple months of the year you can save your transfer out fees by withdrawing the funds yourself.
You can recontribute up to maximum limit currently upto 31k come jan 1st. The sending institution has 10 business days from when they receive the request to process it. Then funds are either sent via an electronic system, or depending on what they are a cheque is mailed. So be prepared for up to 20days from the date you sign transfer papers. Seems there is a theme of leaving TD direct. Maybe I should bite the bullet, until then I will keep hope that TD will step up its game.
Best from the blogosphere Save with SPP. Very annoting, it should be automatic. See the second point in post-transfer steps. Maybe I should highlight it because it is an important step. I got the transfer fee refunds for all our accounts already.
Not sure why it is different for you. Hence the need to phone in to BMO. That is the original rationale for using such a brokerage i. I thought I made it clear to the brokerage when I initially transferred, but I guess I was wrong. Now I have to sit and wait on the phone for an agent. What seems intuitive to me is the opposite for the brokerage. Great post and comments. Have heard RBC does not allow to trade in Mawer funds. I wonder whether a simple transfer is ok with them.
Thanks in advance for a response! I later got laid off and I do most of my banking now with TD. I want to move my RRSP there what would my best course of action be?
Basically un-registered account, but joint with another person. Transferring out a joint account costs the same as transferring out an account in one name. Timely post — many thanks. I have done account transfers in the past and the receiving broker has always picked up the transfer fee.
I want to make a transfer now to Qtrade. Are they likely to pick up my transfer costs. I know this sounds like I move around a lot but these transfers happened over a 30 year period. It took 10 months for TD Waterhouse to transfer in several accounts from a mutual fund company. Pre-Transfer Steps Transferring accounts between institutions costs money. Therefore, the very first thing you should do is call the receiving institution and ask them to cover the cost of transfer. Note down the details of the call: Scrub your holdings in the transferring brokerage.
You should be able to transfer out stocks, exchange-traded funds, most mutual funds, bonds and most GICs. But, the receiving institution may not accept in-house funds available only at the transferring institution example: TD e-Series Mutual Funds or may charge you a hefty fee example: High-Interest Savings Accounts and money market funds from other brokers.
Make sure you have enough cash available in each account you are going to transfer to cover your transfer out fees. Download records such as monthly statements, trade confirmation slips and tax documents pertaining to your accounts from the transferring broker. This is especially critical if you have signed up for online delivery of documents.
If you are relying on your broker to track your adjusted cost base in your taxable cash or margin accounts, download this information as well. In my experience, the book value information may or may not get transferred along with the account. The Paperwork Complete your transfer paperwork and submit it by fax or mail or in person at the nearest branch of the receiving broker. Check out this post on MoneySmartsBlog for a good explanation of these terms.
Account transfers between discount brokers, in my experience, take between 5 to 10 business days. Make sure the list of securities and the number of shares are now correct in your new account. Re-enrol in dividend reinvestment plans DRiPs you participated in your old broker. Follow up and get the transfer fees refunded for each transferred account at your receiving broker. This article has 32 comments Michael James February 5, at 3: Ram Balakrishnan February 5, at 4: Be'en February 6, at 6: Carey Vandenberg February 19, at 1: Bet Crooks February 7, at Ram Balakrishnan February 7, at 7: Be'en February 11, at 9: Atticus February 12, at 4: A most helpful post, as are the comments.
Typically, how long goes it take to complete the transfer process? Josh m February 19, at 9: You can recontribute up to maximum limit currently upto 31k come jan 1st 2. George March 24, at 6: Ram Balakrishnan April 1, at Prasanna June 8, at Mike July 14, at John November 25, at Juli February 17, at 1: Ram Balakrishnan February 20, at 9: Baltharazad April 14, at 4: Andi V July 23, at