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Hi All

New to the forum after stumbling upon Canadian Capitalist and Million Dollar Journey blogs. Ideal timing as their is some much to read and learn but I also have the realities of a six month old taking much of my time. It's a good job she's cute. :D

Anyway my wife and I had recently signed up to a group RESP provider as initially I had thought it was how things were done, being relatively new to Canada. I find big prospectuses and lots of terms and conditions a little concerning and again had little time and less inclination to read through ever detail. I decided to google what I could and now I'm here. I'm thinking of moving to a TD e-fund and when I cancelled the group plan (within 60 day so hopefully I won't get stung) the rep and I talked a bit about bank RESPs.
The only fees I had picked up about with the e-fund series is the low MER but I also had TER and possible termination fees throw in from the rep.

Is there a TER fee on the e-funds? I tried searching for info but didn't find any. It leads me to think their aren't any but thought I'd ask to be sure.

I understand that I only have to keep the money in the funds 90 days before withdrawing it to avoid any fees. Would that fee be classed as a termination fee? The rep mentioned that you usually had to have your money in a mutual fund for 4 years to avoid these.

Any other thoughts or comments please. I was planning to get the branch part of the e-fund done soon so I could do to get this cleared up.

Thanks
He might be talking about some mutual funds which are sold with deferred sales commissions -- you have to hold the fund for a certain number of years to avoid them. But these charges are called DSC, not TER.

TER usually refers to Total Expense Ratio -- the sum of MER and trading commissions. With index funds, TER is typically extremely low. That's the beauty really of these funds -- a very low total cost of ownership.

I personally own e-Series funds and I can assure you that apart from the 90 day holding rule, there are no other fees or commissions. It is self-interest of course but I find it ironic that a salesperson selling such a fee-laden product is concerned about the fees that others charge!
 

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I find it interesting that you specifically praise their interface. I find it quite lacking in many respects. For my kids' RESPs, I've been trying value averaging so I have to manually make my purchases periodically in order to apply my calculations. I find it far too easy to make a mistake in making transfers between funds. I find I have to double even triple check fields to avoid making a mistake.

One of my gripes is that I've found that it always defaults to the same account (I have 2, one per child) even if the last transactions were not for that account. My other big annoyance is that once you register a transaction, there is no record that it exists... or at least none that I've found. I would at least expect there to be some "Pending transactions" list some place where you could monitor the progress of things until they actually perform the trade, etc. the next day.
I agree with these comments. The TD e-Series fund interface is not very friendly. I almost invariably make a mistake and like pablito notes, there is no record of pending transactions. So typically, I call in to correct the mistake. Very annoying.

For investors using TD e-Series funds, make sure to print out the confirmation ticket and double check it for errors.
 

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Are there fees for transferring between e funds?

Do your cash deposits have to go directly into e funds or can you build up and then make a purchase?

What about dividends? Are they reinvested or do they sit as cash?
You are allowed to accumulate money in a TD Money Market Fund and switch to the other TD e-Series funds anytime without penalty. The 90-day rule does not apply to the money market fund.

This is how I invest. Buy $x of the money market fund. $x is pulled out of the checking account and treated as a contribution in registered accounts.

Later, I switch $x into the e-Series funds I want to purchase.

Dividends are automatically reinvested.
 

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Thanks Spidey. I am surprised they charge to transfer between funds.
Mind you, one could simply adjust monthly contributions to reflect desired %.
I am thinking a sleepy portfolio for next years TFSA.

Question for all sleepyheads:

Do you accumulate cash and then cut up the pie to desired , or do you adjust monthly to keep desired %?

Same question for distributions, reinvest and adjust monthly purchase or take cash and then park it?
I suppose you are asking how often should portfolio be rebalanced to the desired allocation. I don't do it often. I rebalance when the percentages are off by more than 5%. Mostly rebalancing is done annually when making contributions.

Check out the blog for discussions on this topic.
 
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