One of my February goals was to re-balance my investment portfolio – mainly my RRSP and TFSA. I currently don’t have investment outside of these two vehicles. I have RRSP mutual funds and index funds in my ING account, my Manulife account and my TFSA is with TD Canada Trust. I want to have as few accounts as possible, and pay the least amount of fees.
Background on TD Canada Trust E-Series
I want to move most of my RRSP into my TD Canada Trust e-series self directed RRSP. The e-series are various index funds, so these funds are NOT actively managed, and they have one of the lowest MERs on the market. For instance, a Canadian index fund has an MER of 0.3% and the global index fund has an MER of 0.5%.
Getting a TD Canada Trust e-series account set up is like pulling teeth, but worth the effort for the low fee’s, IMHO. For come great how-to’s, check out step-by-step instructions from Krystal and Young and Thrifty, I followed their instructions, and 3 weeks and a rejected copy of void cheque (you must use an original cheque – the ING void cheques do not work), I finally got a confirmation from TD my e-series account was up and running. Hallelujah!
Where and Why – ING
I have some of my RRSPs in ING Streetwise account which I started about 3 years ago when I first started getting into Personal Finance. It was easy and it was quick.
Three years later, my account sits at almost $17,000! :) However, even though ING Streetwise Mutual funds are mostly index funds – the only difference is in their asset allocations in bonds vs market indexes – they charge a 1% MER (high for a non-managed account).
I want to move out all my funds in my ING Streetwise RRSP Mutual funds into TD e-series self-directed RRSPs.
Where and Why – Manulife
I have most of my RRSP mutual funds with Manulife. My work has an employer RRSP matching program through Manulife. Since I can automatically contribute to my RRSP from my paycheque – I get the tax benefit right away, as I was too lazy to fill out the required form to lower my taxes. My account currently sits just above $23,000.
The lowest index fund MER charged my Manulife through the work plan is 0.7%, whereas I can get a similar e-series index fund for about 0.3 – 0.5% (half the fees!!). The only trick is that I must keep my employer match and the money I contributed to get the match, with Manulife for 10 years. In order to keep my employer match, I must wait 10 years, before I can take it out.
Move the entirety of my ING Streetwise RRSP into my TD Canada Trust e-series self directly RRSP, and keep only the minimum in my Manulife account and transferring the remaining to TD Canada Trust e-series self directly RRSP.
In order to receive my tax benefits right away (I’d rather not wait for a return every year), then I need to fill out the required forms and send them in. I have this form printed out, I just need to set up my automatic contribution with TD Canada e-series so I have the necessary proof I need for the reduction in taxes.
Re-balancing my Portfolio with TD e-series funds
I had about $33,000 to re-balance from my ING and Manulife account into my TD e-series.
This was my first stab at re-balancing my portfolio. Since I am approaching 30, I decided to go with a slightly more conservative asset allocation: 30% bond and 70% stocks.
Do you see something that is missing? If you don’t see it, stay tuned for 2012 Portfolio Re-balance Part 2.
Hint: See my networth break down here