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