Canadian Money Forum banner

1 - 2 of 2 Posts

·
Registered
Joined
·
1 Posts
Discussion Starter #1
Hello everyone,
I have spent ALOT of time over the past 10 months or so educating myself about investing and have moved my and my husband's RRSPs into self-directed accounts to take advantage of lower MER mutual funds and ETFs, but I know I still have alot to learn and am hoping for some advice. In addition to his RRSP account, my husband also has two LIRAs (2k federal and 11k provincial, so cannot be combined) and I am about to transfer pension funds from a prior employer into a LIRA, probably about 30k worth, although it might be less than 25k. We're with RBC, so my understanding is that we would have to pay $75/yr in fees to maintain self-directed accounts for my husband with his smaller amounts (and possibly my LIRA if it's under $25k). Right now, my husband's LIRAs are invested in a 0.66 MER bond index fund (the lowest MER option fund outside a self-directed account, providing some fixed income to balance his RRSP portfolio). I'm hoping I can open a self-directed account with my LIRA and buy ETFs in a couch potato-type portfolio but am not sure if you can do that with LIRAs either. My questions are:
1. Are there other options (brokers, banks, etc.) that people are aware of that would be a better vehicle for holding our LIRAs without incurring annual fees for the three separate LIRA accounts? I am not familiar with all the regulations about holding LIRAs (other than they are locked in and can't be combined) and am having trouble finding my way.
2. Are there other suggestions of what investments to buy if we are indeed limited to a RBC Investments (non-self-directed account)? I was thinking of holding the bond index fund until interest rates go up a bit and then starting a GIC ladder, but that's not very aggressive and we are only 35...
I would sincerely appreciate any insight or suggestions of where to find more information!
Thanks
hb+3
 

·
Registered
Joined
·
16 Posts
If you look at brokerage accounts, most institutions charge fees on small accounts (unless you are trading a lot). So if you are looking to manage your LIRA account with ETF's, the only option you have is to shop around and look at different brokerage accounts.

However, if you pick RBC funds, you can have your LIRA account with a "exclusive" RBC mutual funds account. Most banks don't charge any fees for them as they are holding only their funds. You could probably be able to find a few great index mutual funds with low MER's...

The key is to consider your account fees and add them up to your MER's since you have a small account. You will be in a better position to now which one is best.
 
1 - 2 of 2 Posts
Top