DRIP - TFSA help needed

[King Tut]

Just opened a TFSA account with Questrade, and would like to DRIP canadian stocks such as RBC, Manulife, and BCE.

I read the canadian premier on DRIPs & TFSA:

http://www.dripprimer.ca/tfsadrip

Still could not wrap my head around the instructions. Why not buy the stocks through my Questrade TFSA account and fill out the questrade DRIP form to have the brokerage (Synthetic) DRIP on my behalf

The article is suggesting buying the stock outside the TFSA first, register it with the company, then transfer it in kind to the TFSA. What are the merits of this approach
The latter approach as I understand it triggers capital gains taxes when the stocks are moved to the TFSA account.

Any input would be much appreciated.

[Argonaut]

You're correct in your thinking that a real DRIP can't be used within a TFSA. You would have to use the synthetic one. My only thing to say with a Questrade DRIP is good luck.

I have sent about four hundred and seventy thousand messages to them instructing them to setup a DRIP in my TFSA. At first I got messages of assurance that the DRIP had been setup, or was going to be. Still I only received cash dividends instead of one or two whole shares. And finally, months later the last message I got was that the DRIP couldn't be setup because I had sent an emailed signed copy of the DRIP form and not one in the regular mail. And of course this was during the postal strike. This despite the fact that it was easy enough to apply for two accounts all online without any mail whatsoever.

I've finally given up and won't pursue it any longer. Questrade quite possibly has the worst customer service of all time. Ever. Can't wait until I have $50k. I should probably send v_tofu to their office with his shotgun and a DRIP form.

[Toronto.gal]

DRIP couldn't be setup because I had sent an emailed signed copy of the DRIP form and not one in the regular mail.... Can't wait until I have $50k.

This surprised me as all I had to do was call my broker and it was set-up right away. Why does Questrade need the request by mail?

I'm sure you know already, but just in case, remember accounts held by family members are also taken into account for the $50K, if you live at the same address.

[humble_pie]

t.gal i suppose we could consider adopting argo. For such a young man he's a helluva good investor. Though i never did understand his presentations on silver.

[Toronto.gal]

Sure HP, he's intelligent, nice & polite enough, though not young enough to be my son, but who's counting.

[humble_pie]

who's talking about a son. I seem to remember something about chateau lake louise ... yourself ... & ... another ... youthful ... member

[Toronto.gal]

LOL, I'm a bit slow this morning; hmmm, nothing escapes you, does it HP?.

King Tut: I like your username.

[Cal]

I am pretty sure that page was written to drippers who were already dripping companies prior to the TFSA being created.

So for those people, if they were already dripping MFC, they would have to get a share certificate to deposit in a brokerage to hold within their TFSA.

I agree with you, to start a portfolio, I would simply buy the stocks that I wanted to hold in a TFSA and drip. Simple.

Or if I already had MFC dripping, and I wanted to hold more in a TFSA, I would open a TFSA and buy more. But not everyone is able to do that b/c of their cash flow.

[Sherlock]

So the lesson here is, if you want to DRIP in a TFSA don't do it with Questrade?

I thought Questrade is geared more toward active traders rather than people who want to DRIP?

[zoya]

"Toronto.gal: This surprised me as all I had to do was call my broker and it was set-up right away. Why does Questrade need the request by mail? "Questrade needs to have a signed copy of the request for DRIP per account. When I asked why they said it was the company policy. They are very paperwork oriented. However for any new stock added to the account, I just need to call them.