# TFSA Advice



## newfoundlander61 (Feb 6, 2011)

I opened a TFSA in Jan 2013, and as of today saved $12,000.00 which is invested in the Mawer Balanced Fund. I purchase units weekly in the amount of $100 and buy extra units when money permits throughout the year. Recently I received a small estate settlement from a family member in the amount of $45,000. I was considering topping up the TFSA so that by years end along with my continued weekly purchases I have used all available room to date that you can put in. The Mawer Balanced Fund is a solid investment as I normally don't buy stocks directly (got burned on Nortel) and is a decent one fund portfolio that will add to my current Defined Benefit Pension Plan being retired from the Armed Forces (I still work at a local business around 32 hrs per week.) I am not keen on putting in the extra funds and buying units in the Balanced Fund with the entire $17,000 at once in case the a market correction (sizeable one that is) occurs resulting in a lose of money that may take time to get back. The amount would be around $17000 with a few hundred to spare so I don't go over by years end (including the continued weekly purchases of $100.) Maybe adding a second low MER fund to go with my current one is an option. A second thought is to leave the money in as cash and buy chunks of units as the market pulls back until the entire amount in invested. Looking for advice on how to disperse the funds and invest. Money will be there for at least until I hit 65, currently i am 53. See link for current fund that I hold.

http://www.mawer.com/mutual-funds/fund-profiles/mawer-balanced-fund/


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## Canadian (Sep 19, 2013)

You could put the $17,000 in a money market fund and increase your weekly purchases to $100 + however much of the $17,000 you would like to invest. I would recommend against sitting on cash and market timing as you already seem like a passive investor and the 10-20% market correction some are anticipating may not arrive until after the market trends another 15% higher.


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## Cal (Jun 17, 2009)

+1^ Dollar Cost Averaging may be a worry free approach for you.


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## PrairieGal (Apr 2, 2011)

> Maybe adding a second low MER fund to go with my current one is an option. A second thought is to leave the money in as cash and buy chunks of units as the market pulls back until the entire amount in invested.


I don't think adding a second fund is going to make any difference. It would still be based on the stock market. If you want to keep some of it in cash, People's Trust has a TFSA that pays 3%. I like having some cash for an emergency fund. 

Maybe keep $10,000 in People's Trust and dca $7000 over the next 6 months, if that makes you more at ease. It's as much about feeling at ease as about the dollars and cents, in my opinion. 

Just wondering, which brokerage do you use to purchase the Mawer fund?


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## newfoundlander61 (Feb 6, 2011)

I purchased it through CIBC Investors Edge, $5000 min to purchase the fund intially. Thanks for the tips, may be an idea to just increase the weekly auto-purchases and slowly put it into the market.


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## OhGreatGuru (May 24, 2009)

This may be a change of subject, but since you are still working and plan to save this money for retirement, do you have any unused RRSP room to which you could contribute some of it?


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## Eclectic12 (Oct 20, 2010)

newfoundlander61 said:


> I opened a TFSA in Jan 2013, and as of today saved $12,000.00 which is invested in the Mawer Balanced Fund. I purchase units weekly in the amount of $100 and buy extra units when money permits throughout the year. Recently I received a small estate settlement from a family member in the amount of $45,000.
> 
> I was considering topping up the TFSA so that by years end along with my continued weekly purchases I have used all available room to date that you can put in. ... I am not keen on putting in the extra funds and buying units in the Balanced Fund with the entire $17,000 at once ...


What sort of HISA MF can you buy in your TFSA?
What are the holding periods, penalties and costs?

http://www.canadiancapitalist.com/high-interest-savings-accounts-at-discount-brokers/


Buying one of these with the funds you are not ready to move into the Mawer fund may give the flexibility you are looking for.
The funds in the HISA will pay interest in the form of more units while held. 

When you see a correction, worst case is you need T+1 for the HISA to clear and T+1 to buy the Mawer fund. 

If it's a preferred HISA, there may be no holding period, lower minimum purchase amounts plus you may be able to buy the Mawer Fund *before* selling the HISA fund. 

For example, one of the TDDI preferred HISA funds is TDB8150. When I've tried to buy stock where the combination of cash plus the TDB8150 units is the only way to fund the purchase, the buy went through without any problems (i.e. the TDDI account sees both cash & TDB8150 as cash available to buy other investments). When I confirmed the purchase went through, I then sold the needed number of TDB8150 units.


Cheers


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## newfoundlander61 (Feb 6, 2011)

I have tons of RRSP room but being in receipt currently of a Defined Benefit Pension plan that is indexed made me think doing just a TFSA was a better route so the Gov't doesn't take a chunk of the RRSP once its converted to an RRIF and withdrawals start?


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## newfoundlander61 (Feb 6, 2011)

Thanks for the info and feedback. Decided for now to change my weekly purchases from $100 to $700, by years end I will have just about caught up with the max contributions available. Will continue to purchase units in the Mawer Balanced Fund.


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## My Own Advisor (Sep 24, 2012)

Tons of RRSP is a good problem to have, if in receipt of a DB pension plan. 

I have a DB plan and trying to optimize my RRSP, prefer to max out the TFSA every year if I can...


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## Sustainable PF (Nov 5, 2010)

My Own Advisor said:


> Tons of RRSP is a good problem to have, if in receipt of a DB pension plan.
> 
> I have a DB plan and trying to optimize my RRSP, prefer to max out the TFSA every year if I can...


Ditto for my wife and I. The only reason I contribute to our RRSP is to pay back the HBP.


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