Join Early Retirement Today
Reply
 
Thread Tools Display Modes
Re: I decided to do my own investing
Old 10-11-2006, 10:37 AM   #41
Thinks s/he gets paid by the post
ladelfina's Avatar
 
Join Date: Oct 2005
Posts: 2,713
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?).
ladelfina is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: I decided to do my own investing
Old 10-11-2006, 01:36 PM   #42
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,856
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.
__________________
*

Co-author (with my daughter) of “Raising Your Money-Savvy Family For Next Generation Financial Independence.”
Author of the book written on E-R.org: "The Military Guide to Financial Independence and Retirement."

I don't spend much time here— please send a PM.
Nords is offline   Reply With Quote
Re: I decided to do my own investing
Old 10-12-2006, 06:24 AM   #43
Full time employment: Posting here.
My Dream's Avatar
 
Join Date: Sep 2006
Location: Ontario, Canada
Posts: 837
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.
__________________
Newbie
My Dream is offline   Reply With Quote
Re: I decided to do my own investing
Old 10-12-2006, 12:05 PM   #44
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
kcowan's Avatar
 
Join Date: Jul 2006
Location: Pacific latitude 20/49
Posts: 7,677
Send a message via Skype™ to kcowan
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?
__________________
For the fun of it...Keith
kcowan is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Value Investing Arif FIRE and Money 6 04-26-2016 06:01 PM
Aging Brings Wisdom, but Not on Investing dex FIRE and Money 0 12-04-2005 11:16 AM
(DVY) and Dividend Investing charlottebandito FIRE and Money 11 08-01-2005 09:35 PM
Book Report - Four Pillars of Investing cute fuzzy bunny FIRE and Money 24 03-25-2004 11:24 AM
International Exposure in Investing arrete FIRE and Money 21 04-03-2003 09:54 AM

» Quick Links

 
All times are GMT -6. The time now is 12:23 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.