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Re: I decided to do my own investing
Old 10-11-2006, 11:37 AM   #41
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Re: I decided to do my own investing

Hmm.. if I were looking at 35 funds * $45 = $1575 to consolidate at TDW I would consider opening a new account at a new brokerage like E*Trade and putting them there for free, unless there is some reason that the OP is in love with TDW. If the latter, at the very least I would try using the threat of taking everything out of TDW help negotiate those fees down.

If he put everything into E*Trade and decided he liked TDW better at some later date, then could he not open a "new" TDW acc't. for free? 2 account closure fees can't equal anywhere near $1500.. (or am I missing something?).
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Re: I decided to do my own investing
Old 10-11-2006, 02:36 PM   #42
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Re: I decided to do my own investing

Quote:
Originally Posted by kcowan
TDW charges to move in-kind holdings into your existing account from another broker because "it is a manual process".
Why do companies charge these types of fees?

Because they can.

However investors moving to a lower-cost providor are usually ahead even after paying the escape fees.
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Re: I decided to do my own investing
Old 10-12-2006, 07:24 AM   #43
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Re: I decided to do my own investing

Quote:
Originally Posted by ladelfina
MyDream, I don't understand the TDW $45/item charge.. on their web site the only $45 charge seems to be for transferring OUT of a 'registered account' INTO a non-registered account. Is that what you want to do? Can you explain? I looked here http://www.tdwaterhouse.ca/trading/ascs.jsp because that didn't sound right to me.

Not being Canadian I don't know much about the rules, but is there a reason that you'd want to transfer OUT of tax-sheltered accounts AT TDW? What do you mean by "TD Waterhouse wants to charge $45/fund to manually move them over to the same account so we don't pay capital gains"? I wouldn't think that TDW would be charging you anything for moving funds IN to TDW from IG.. if there are costs they would be on IG's end, no?


You have a lot of time between now and January to go over these 35 funds and see if there are any worth keeping, once you get a basic idea of what you want in terms of asset allocation and simplicity. You say the IG funds were only getting you 2%.. was that in overall growth or just dividends? If the funds have not appreciated much, then, sure, take the cap gains "hit" (in this case maybe a "light tap") and start from scratch. Or, you may want to wait and hold onto a few that have appreciated the most and sell them off in later years if they are not right for your long-term objectives. (Of course, if you can only hold the IG funds within IG, then ignore this whole paragraph and the one above it )

Great questions ladelfina , it confused the heck out of me also. First off, the reason for moving part of the portfolio out of IG is because we have been averaging approximately 2% per year over the course of 9.5 years. The way I determined that was to subtract my present amount by my principal amount and figured a 2% per year gain. IG is going to charge me DSC for any amounts that have not been with them for the terms of the agreement. That amounts to around $1,400. TDW wants to charge $45. per fund for the reason kcowan stated...."TDW charges to move in-kind holdings into your existing account from another broker because "it is a manual process". If I were to cash in with IG I don't believe TDW would charge the $45. per fund fee, but I would have to pay capital gains. That may be a better option but I would have to wait until 2007 to do that. By the way, the funds with IG are IG's funds.......I believe.
The reason for going to TDW is because I already have 40% of my funds with them and they seem to be very competitive in there rates.

I hope I've answered your questions ladelfina.
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Re: I decided to do my own investing
Old 10-12-2006, 01:05 PM   #44
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Re: I decided to do my own investing

Quote:
Originally Posted by My Dream
...If I were to cash in with IG I don't believe TDW would charge the $45. per fund fee, but I would have to pay capital gains. That may be a better option but I would have to wait until 2007 to do that. ...
I would ask to speak with an advisor at TD and explain the dilemma that you have. I supect you can negotiate a lower fee for transferring but I suspect that holding IG funds may not be allowed. If you explain that you will switch them as soon the the DSC charge goes away, they might negotiate a lower fee to get the larger $ in your account?
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