# RRSP move



## BETTYVEE (Dec 23, 2009)

I may have messed up and need some help getting on a better path. *hanging head in shame*

When I was waay way younger and got my first few paychecks I dumped my money in an rrsp without really knowing where I was putting it. I figured doing something was better than nothing. I have about ~15000 parked in three different managed mutual fund portfolios at CIBC charging between 2.18-2.46 MER. I want out and want to find a better way to have my money invested. I know its not much but this money has been sitting there since I was 18 (im 30 now...eee) and obviously it hasnt done as well as it could have.

Right now im thinking of just moving it over to a CIBC index fund that would charge much less (1.11 MER) until I figure out a better place to park this RRSP money. I do have some other RRSP funds in an ING MF and a DB pension so I have focussed on saving elsewhere but I would really like to have this money doing better. 

Anyone have suggestions?


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## Spudd (Oct 11, 2011)

You can ask ING to transfer the RRSP from CIBC to them, to consolidate it all together. They should be glad to help out.


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## CanadianCapitalist (Mar 31, 2009)

+1 for what Spudd said. When you call ING ask them if they are willing to refund any RRSP transfer fees that CIBC is going to charge. After your account is moved, follow up and get those fees refunded.


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## the-royal-mail (Dec 11, 2009)

Sorry that happened to you. The good news is you're not alone. I had a similar problem and changed everything to GICs and index funds but most of the time has been lost. May I ask what your return was over the past 12 years? Might serve as a cautionary tale.


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## lonewolf (Jun 12, 2012)

HI,BETTYVEE
Go to a credit union sign the forms that let them transfer the money from the bank to the credit union. show the credit union your accounts @ the bank have the credit union transfer the money for you. Then put the money in GICs

Putting money in mutual funds of a bank, is like puting money on a poker table & giving your hand to your opponent to play. If you do that & are still wondering who the sucker is sitting @ the table perhaps it is you Good luck with that. Bank has a conflict of interest come hell or high water they make money. Who is really taking the other side of the trade ?


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## wendi1 (Oct 2, 2013)

I disagree with lonewolf.

An stock index fund is appropriate for your age and goal (retirement, no?). GICs are for short-term goals.

Moving your mutual funds to ING is a pretty good option. Make sure your CIBC funds do not have a back-end load or big penalty for early withdrawal, and then after ING moves them for you, get someone there (or here) to help you set up a diversified, low cost portfolio. Set up automatic withdrawals from your chequing account while you're at it (doesn't have to be much).

Good for you - getting this stuff sorted now will save you big bucks in the long term.


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## the-royal-mail (Dec 11, 2009)

^ the OP said she was uninformed about investing & has lost money on MFs and you want her to set up "automatic withdrawals" from her chequing account and set up a "diversified portfolio"? Wouldn't that compound her problem? GICs are for safety and are quite appropriate while the OP figures things out. I don't think that telling the OP to "move her mutual funds to ING" is good advice. Do you work for ING?


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## wendi1 (Oct 2, 2013)

Nope, I don't work for ING (or even deal with them, since my mortgage has been paid off). But the OP already has an ING MF account.

She's only 30 and has a long time to let this grow. IMHO, it is not too early to start saving automatically for retirement, and a diversified portfolio, with advice (in low-cost MFs or index funds) is a pretty good option. In the 80's I would suggest GICs, but in this low-interest environment, I think she should be in the market.

If you are dissatisfied with ING, there are other options out there.


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## BETTYVEE (Dec 23, 2009)

I definitely want to be in the market  I had an automatic plan in the past with money going into my ING RRSP (they make it so easy) but now with the TFSA I think I would rather use that as a retirement fund. I have the DB plan from my government job and rental income I plan to keep forever I dont think my income will be less when I retire so RRSP seems to make less and less sense for me..i think..

never heard of back end load will definitely have to look into that and it definitely did not occur to me to ask ING to refund transfer fees..great idea! Im not very good at negotiating lol so we will see how that goes.


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## MoneyGal (Apr 24, 2009)

Risk capacity and risk tolerance are not the same things.


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## BETTYVEE (Dec 23, 2009)

the-royal-mail said:


> Sorry that happened to you. The good news is you're not alone. I had a similar problem and changed everything to GICs and index funds but most of the time has been lost. *May I ask what your return was over the past 12 years? Might serve as a cautionary tale*.


I cant cry victim here, this was all my doing lol. I personally haven't kept track of return myself (bad i know..very bad) but online it says the past ten years performance has been around 3.4-3.7% and with MERs at ~2.3 you can see its practically nothing.. blaarghh


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## Spudd (Oct 11, 2011)

I think the online return numbers include the MER (so you got 3.4-3.7 including the effect of the MER).


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## MoneyGal (Apr 24, 2009)

This. MF companies don't quote gross returns, they quote net of fees.


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## chantl01 (Mar 17, 2011)

I think for someone who wants a 'set and forget it' approach the MFs at ING are a good option. I put my first TFSA $5000 contribution into ING's Streetwise Balanced Fund and forgot about it. Since then all my TFSA contributions have gone into TD Direct Investing with a strategy to buy and hold 'dividend aristocrat' stocks.

Guess which TFSA account is providing the better rate of return for me? Hint: it's not the stocks.


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## PrairieGal (Apr 2, 2011)

I think the ING Streetwise Funds are great for novice investors with small portfolio's. I am one also, and I have both an RRSP and a TFSA at ING. The Canadian Couch Potato happens to agree. http://canadiancouchpotato.com/2013/09/12/the-one-fund-solution/ 

I also agree with funding your TFSA first, especially in the OP's situation where she will have a high income in retirement. With taxes it's either pay 'em now or pay 'em later and I would rather pay 'em while I am working rather than when I am retired. Besides, with a TFSA you never pay taxes on the growth, whereas you do with an RRSP.


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