transfer money in kind

If you have LL funds, they are seg funds - mutual funds with an insurance wrapper. You can't transfer them in kind to RBC Direct because RBC can't hold the funds.

Find out when the surrender charges expire (if there are still surrender charges), cash them out, and transfer the cash then.

moneygal

MoneyGal said:

If you have LL funds, they are seg funds - mutual funds with an insurance wrapper. You can't transfer them in kind to RBC Direct because RBC can't hold the funds.

Find out when the surrender charges expire (if there are still surrender charges), cash them out, and transfer the cash then.

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would you know how long these surrender charges apply for at the london life policies. Also how long these things generally take as fund manager has been pretty evasive as he doesn't like losing a customer hence the reason I am on here it is easy to get in and political to get out but money is mine and would like it back in action as I feel I can do just as well as they are doing on the open market with all the bargains out there and there are some pretty good perks out there at the moment.

Surrender charges: usually 5 years from the purchase date. You will have some units free of surrender charge now. Also, even though you've been investing since 2004, you probably have a bunch of different units all with different surrender schedules in the same account.

Finding out about the surrender charges: you are absolutely entitled to this info. I doubt you are talking to the "fund manager," but the salesperson who sold you the funds. Call the LL head offices directly (look on their website, get the phone number, call and ask for investor relations or say you are looking to find out about the surrender charges in your account). They have people who sit at the phone and answer questions about surrender charges all day long, as unbelievably boring as that sounds.

moneygal

thank you for your help and I have one more question. If I have moved my funds around during this recession to some safer stuff like moving from equities to dividend funds is this considered a new buy even though it is the same money just moved around inside my rrsp. Also how long should it take to receive my cash into my new self directed fund. Thank you again.

...a "new buy"? Why does this matter unless you are dealing with deferred sales charges? There's no tax consequences for buying or selling inside an RRSP. You can buy and sell every day if you like.

Time to transfer: ranges from a few weeks after the transferring institution has received the paperwork, to a few months. Sometimes you need to monitor it and check in with the transferring institution.

I could find no mention by the OP of these $$ being inside RRSPs. So selling one security and buying another does indeed crystalize a sale for tax purposes, and starts a new ACB (adjusted cost base) for the new security. Learn how to keep track of your security's ACB. The taxable capital gain/loss = one half of the difference between the proceeds of sale (net) and the ACB of the security sold.