Agreed - they are also higher MER, so if you are comparing to the cheap broad-based index ETFs like offered by iShares & Vanguard you have to consider that someone with more money might pay more for MER than they save in transaction costs.Originally Posted by HaroldCrump
However, for someone starting out, they are likely a very good deal.
Mike Holman
Money Smarts Blog Investing and Personal Finance
Interesting ... I'll have to keep this in mind. Thanks for the update.
Cheers
Yes you guys are propably right I was able to find 2 etfs that would have met my needs if I was trading the Canadian markets & assummed that they most likely had ones that could play the broad market (sorry my mistake)
Through my research I had developed a sun- lunar trading method for part of my trading portfolio & there were ETFs that let me trade the technology sector & the oil & gas sector for free in the Canadian market. But I decided to use the QQQ , XOP & XLE instead.
Hello!
Back again to provide an update. I've taken the forum's advice by cooling down and attaining more knowledge before I do anything. That is why that I have decided to start reading the recommended 'Eight for Weight'. I am a third of the way into 'Investing for Canadians for Dummies.' This actually was a good starting point for me because already, I am reading about many factors that I never really understood in the first place.
In the middle of all of this, I am trying to get the "little things" done. Turns out that my credit card is free for the rest of the year so there's no need to ditch that card for a no-fee card. Not just yet.
As for my emergency funds, so far, I've applied for a savings account with Canadian Direct Financial. Their 2% savings account (with no minimum monthly balance) is better than any savings account with TD. Once that's approved and I am officially a member, that's when I'll apply for the 3% TFSA.
I've already received a pamphlet in the mail for a free chequing account with PC Financial. I guess I missed the part about only being able to withdraw $500 from a bank machine at a time. It seems a little odd to me...but looking ahead, I'm thinking that shouldn't be too much of a problem.
One more thing: a TD representative phoned me yesterday to talk about my TD accounts (must have been because I ended my PACs). I was nice enough to give him a chance to speak to me. In the conversation, he asked me if I was satisfied overall and I mentioned how I wasn't the most satisfied because of my accounts requiring a monthly minimum balance for such low interest rates. He then said that I shouldn't worry about interest rates and should just focus on avoiding fees so I can maintain these accounts. The conversation never went much further after that and we never even talked about my investments.
Last edited by Money4life; 2012-06-05 at 06:54 PM. Reason: typos
It's great to get an update, as well as hear that the "Eight with Weight" is working out. I'm sure you will be much more confident in your decisions going forward. Not to mention far less easy a target for those looking to make money off of you!
As for the ATM limit, I have not really noticed this as an issue for the years I've had an account. For my needs, anything over $200 I setup as a bill payment, write a cheque or use my cash-back credit card then program a bill payment to pay it off. So now that you are aware of it, this may not end up being an issue however, everyone has different requirements so YMMV.
Cheers
It is great to hear that you're investing some time reading basics!
The reason why so many go wrong and/or think investing is too complex, is exactly because they did not start with the fundamental basics/mechanics of investing.
You will see how empowered you will feel the more you read & learn!
“Simplicity is the ultimate sophistication.”
Way to go Money4life!
I too am going through that list. I found "The Naked Investor" downright frightening but extremely informative. (terms like "discretionary trading" and "churn" were new to me) I think you'll like that one.
*nods* Good plan there - take advantage of free use while you can....In the middle of all of this, I am trying to get the "little things" done. Turns out that my credit card is free for the rest of the year so there's no need to ditch that card for a no-fee card. Not just yet.
Do let us know what you think of the CDF interface and features. There's not a lot of talk about CDF online yet....As for my emergency funds, so far, I've applied for a savings account with Canadian Direct Financial. Their 2% savings account (with no minimum monthly balance) is better than any savings account with TD. Once that's approved and I am officially a member, that's when I'll apply for the 3% TFSA.
Odd. I don't think I have a $500 limitation, though I've heard that complaint before....I've already received a pamphlet in the mail for a free chequing account with PC Financial. I guess I missed the part about only being able to withdraw $500 from a bank machine at a time. It seems a little odd to me...but looking ahead, I'm thinking that shouldn't be too much of a problem.
You could write a cheque instead - no limit on those.
lol. It's amusing how the bank customer service reps change their tune when they realize you know what you're talking about and how to manage your money....One more thing: a TD representative phoned me yesterday to talk about my TD accounts (must have been because I ended my PACs). I was nice enough to give him a chance to speak to me. In the conversation, he asked me if I was satisfied overall and I mentioned how I wasn't the most satisfied because of my accounts requiring a monthly minimum balance for such low interest rates. He then said that I shouldn't worry about interest rates and should just focus on avoiding fees so I can maintain these accounts. The conversation never went much further after that and we never even talked about my investments.The PC rep I told about the CDF 3% TFSA lost his cool briefly (cheerfully), saying "Noooo! Seriously? 3%?" - sounded like he was going to go open one of his own.
Last edited by CJOttawa; 2012-06-07 at 09:52 AM.
Thanks for the feedback guys...
CJOttawa, yeah I thought it made sense to keep my travel rewards card with TD but just yesterday, I was thinking..."how the hell am I supposed to pay my bills if I'm going to get rid of my chequing account with TD?". If and when I open a savings account with TD, I am allowed to have one free debit transaction per month from it but do I really want to be paying my credit card from a savings acccount? That also means that I'll have to feed money into it but I think I would rather have more of my savings in the CDF savings account.
I might have to get the PC Mastercard afterfall...
Just setup the TD travel rewards credit card as a bill to pay using whatever financial account you choose. There is no need to have a TD account to pay a TD credit card.
For example, in the past I've paid a BMO MasterCard, a CIBC Visa as well as an American Express from my PCF chequing account, all without having an bank account with any of them.
Cheers
+1 on this. I also would like to know more about CDF. I'm disappointed in ING Direct: 1.35%/1.40% for non-reg/TFSA savings? At first I didn't care when they dropped their rates because it's a small percentage difference, but now I am starting to feel a little ripped off and have been considering CDF.
This made me LOL.It's amusing how the bank customer service reps change their tune when they realize you know what you're talking about and how to manage your money.
Posting Permissions
Reply With Quote