# TD Waterhouse Self-Directed RSP Account Questions



## jess24 (May 1, 2009)

Hi,

I have some questions regarding setting up a Self-Directed RSP account with TD Waterhouse. Currently I have a Mutual Fund RSP account with TD (where I am restricted to only high cost TD mutual funds) and am looking to sell my holdings and transfer to the Self-directed account so that I can buy other company mutual funds and ETFS. So my questions:

1. I know that I cannot hold cash in the mutual fund RSP account. So I guess I first need to “switch” all my funds to the TD money market fund in order to get out of the mutual funds currently held. But then how do I transfer this money to the Self-directed RSP in Waterhouse– I don’t see any options for transferring $ from Easy web accounts to Waterhouse.
2. Also I’ve read somewhere that TD charges $9.99 per trade if your accounts total $75,000. Is this true? What accounts qualify? Do accounts held jointly with family count too?
3. Also is it true that the yearly account fee is waived if you hold a certain amount? Is this based on the value of your Self-directed RSP or the value of all accounts?


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## jwsmith519 (Dec 13, 2009)

jess24 said:


> Hi,
> 
> I have some questions regarding setting up a Self-Directed RSP account with TD Waterhouse. Currently I have a Mutual Fund RSP account with TD (where I am restricted to only high cost TD mutual funds) and am looking to sell my holdings and transfer to the Self-directed account so that I can buy other company mutual funds and ETFS. So my questions:
> 
> ...


Why don't you have TD change your mutual fund account to an TD eSeries account? Then you can buy low MER mutual funds. If it were me, I'd DCA into that account with a PPP bi-weekly or monthly. Then once a year, cash out and move the funds into ETFs. You'll keep your commissions you pay to a mininimum since you won't be paying any commissions to buy TD eSeries funds, but you are still cost averaging and buying funds when the markets are at their bottom. But after a year of accumulation, you'll be able to move into an ETF. The only drawback to this strategy is that if its unregistered funds, then you can invoke a tax event (capital gain/loss) every year. But you'll be paying that in tax anyways, either now or later.

The last time I checked, the fees at TDW are $9.99 for household account sizes greater than $50k. Otherwise I think it's $29.99.


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## Eclectic12 (Oct 20, 2010)

jess24 said:


> Hi,
> 
> I have some questions regarding setting up a Self-Directed RSP account with TD Waterhouse. Currently I have a Mutual Fund RSP account with TD ... and am looking to sell my holdings and transfer to the Self-directed account so that I can buy other company mutual funds and ETFS. So my questions:
> 
> ...


For question 1 - Has the Self-Directed RRSP been opened? I expect this would be required before an online $ transfer could be done. 

If the answer is no - then when if you open the SD-RRSP at an office, let them know you want to transfer the mutual funds. There will be paperwork to fill out but part of the paperwork is to indicate if you want the MFs transfered "in-kind" or "in cash". The "in-kind" option will keep the MF as-is where the "in cash" will sell the MFs and the SD-RRSP will see only cash being deposited.

With all of the online options these days, there might be a way to do this without going into the office but I haven't done it. Then too, you say the MF RSP does not allow cash so I'm not sure if TDW would want to do this online.

If you are keen on avoiding an office visit, call their 1-800 and ask.


For question 2 - According to the URLs below, the threshold if $50K for $9.99 trades. I expect it is true as I've had the $9.99 for years based on the old $100K household limit. 

http://www.tdwaterhouse.ca/products-services/investing/discount-brokerage/commissions-fees/asff.jsp

The only time I had a problem was when one of the RSP accounts became unlinked, putting me below the limit. A quick phone call re-linked the accounts and a refund on the trade was processed with a couple of days.

Here is the account note:


> Household accounts are defined as those TD Waterhouse Discount
> Brokerage accounts for clients living in the same household, with the same
> address. You must advise TD Waterhouse Discount Brokerage of those
> multiple account relationships.


from http://www.tdwaterhouse.ca/document/PDF/apply/forms/tdw-apply-forms-521778-pdf.pdf


For question 3 - It was the plan amount for me but that was years ago and the fees have changed several times since. I'd check out the two links and if you still aren't sure, call the 1-800 number.



Cheers


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## whitby (Nov 17, 2010)

On how many websites did you post this same question?


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## jess24 (May 1, 2009)

Thanks everyone



whitby said:


> On how many websites did you post this same question?


How many finance discussion forums do you visit everyday?


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## Liquid Independence (Oct 6, 2011)

Eclectic12 summed it up pretty well, i'll just recap adding my own experience with waterhouse.

1. make an appointment to sit down with a financial advisor at a branch near you. Tell them that you want to open a self directed RSP account and transfer your current mutual fund holdings in cash (because you mentioned you want to sell your holdings to buy other securities) to your new self directed account. there shouldn't be any fees or taxes to worry about. there's a chance they might open up a temporary RSP savings account as an intermediate transfer vehicle to liquidate your old mutual funds, but that's free too. 

2. Minimum $50K to get the discount. it's the sum of all your household accounts with Waterhouse (not TD Canada Trust.) So if you live with your spouse or your parents for example, and they have their own separate investments with waterhouse, as long as everyone's holdings has a combined market value over $50K, everyone qualifies for the $9.99 commission. you just have to tell them that you all live under one roof, via phone or go to the branch. 

3. the $100 plus GST or HST (depending on where you live) fee is an administration cost for any self directed RSP accounts. To waive this fee you must have more than $25K balance in this account and haven't chosen to pay the fee from outside the account. This fee is unrelated to your other self directed accounts you may hold with waterhouse.

_________________
My Journey to Freedom


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## jwsmith519 (Dec 13, 2009)

jess24 said:


> Thanks everyone
> 
> 
> 
> How many finance discussion forums do you visit everyday?


Many of the people who read this forum also read the other one you posted on.


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## Eclectic12 (Oct 20, 2010)

Liquid Independence said:


> Eclectic12 summed it up pretty well, i'll just recap adding my own experience with waterhouse.
> 
> 1. ... there's a chance they might open up a temporary RSP savings account as an intermediate transfer vehicle to liquidate your old mutual funds, but that's free too.
> 
> ...


Interesting ...

For 1) 
Whenever I'd done the transfer from another RRSP paperwork, there's been no mention of a "temporary RSP savings account". Though, I transferred the TD MF's in-kind and sold them from the SD-RSP. A few were transferred "in cash" but they weren't TD MFs.

For 2)
As mentioned in my previous post, one of my RRSPs (I think it was the LIRA) became un-linked. When I called, they asked for the account number as part of the re-linking process. The computers are better these days but it might be handy to have a statement with the account numbers on it handy, just in case.



Cheers


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