Author Topic: Canadians! TD e-series - account opening nightmare - losing my confidence!  (Read 3679 times)

Wannabe Mustache

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I'm cross posting this here (already posted on Investing) because this category seems more active.  I hope I'm not breaking any rules. 

I posted questions about RRSPs & RESPs

https://forum.mrmoneymustache.com/investor-alley/canadian-late-beginner-rrsp-resp-questions/

Well I went to TD to open RRSP & RRSP accounts so I could buy e-series index mutual funds for my RRSP & RESPs using a couch potato approach (until I learn more and have a larger portfolio to avoid fees).


Nobody in the branch knew what to do!  They though I needed a TD Waterhouse account and they were concerned about it because of the fees.  They didn't even know what I was talking about when I showed them the mutual fund ID symbols!  The branch manager eventually realized they were the e-series but had no idea what to do.  Several hours later with phone calls to TD Waterhouse and then some internal help line (thank god they knew what to do) I finally got myself a mutual fund account that will be transferred over to an E-Series Funds account so I can buy the e-series funds.  What an ordeal!  We didn't even get to the RESP account yet.  Yikes! 

So - I want to transfer money from my RRSP from Standard Life ($4400) and my RESP (Scotia Canadian Balanced Fund BN378) from Scotiabank $$17,000 with a 2.03 MER and poor performance. 

Scotiabank charges $150 to transfer out.  I asked the woman at TD if they covered the fees and she didn't think so. 

I have to figure out what Standard Life will charge to transfer out - hard to figure out the costs.

Is it worth it for the RESP?  Would I be better off trying to figure something out with iTrade through Scotia?  Or a different fund? 

I think my RRSP will be worth it so I'm going to continue with that and make monthly contributions using the Global Couch Potato Model for now.

I so need to understand all this better.   I have Wealth Ed:  Money Management for Ontario Teachers & The Millionaire Teacher.  Thinking about reading The Bogleheads Guide to Investing.  Alas, my local library does not have any of the books I want to I end up buying them over Amazon (I live in small town northern Ontario so only one library).
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*edited to add

I just called Standard Life and the first withdrawal is free so no fee to transfer the $4600 (got an updated balance too).

Looked as iTrade with Scotiabank and there are some  US Vanguard ETFs I could buy there, I don't see any Canadian ones but I am unfamiliar with ETFs right now which is why I was thinking e-series (simple, once the account is open.    I need to figure out the fees - there are account fees for under $25,000 plus trading fees. 

Once my RRSP account is open with TD I will think about the RESP account - it might be worth the fees for awhile and once I go over the $25,000 threshold the fee is waived. 

Thoughts?  Stay at Scotia for RESP (remember the transfer fee is $125) but switch to iTrade?  Move to TD? 

How do I learn more about which ETFs are good?
« Last Edit: March 21, 2014, 12:10:41 PM by Wannabe Mustache »

Zikoris

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I sympathize - it took my boyfriend a month, several hours of branch visits (multiple branches), firing at least one person (we don't tend to let things go very easily if someone screws with us) and a steady stream of lies, incompetence, paperwork mistakes, and upsell attempts to get his e-series accounts up and running. I used to want an e-series account myself, but abandoned that idea when I saw what he went through. The problem seems to be systemic, because it wasn't just a teller here or there - he had branch managers give him bad information.

The good(?) news is, once you make it through the gauntlet, maintaining the accounts is very easy. It's like they just eventually give up trying to screw you over.


jennaw

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I had trouble setting up my Registered Disability Savings Account with both Royal Bank and TD Waterhouse. Anything that is new or that they don't do a lot of, they seem to find really confusing. If there is a main bank where you live (i.e. downtown), I would recommend going there rather than to one of the satellite branches.

With $16,000 to transfer, TD should cover the transfer fee. They did for my RDSP account. Make sure you sit down with one of the investing staff.

See the account set up issues as a challenge rather than a barrier. You're doing something that the masses aren't doing. That's a good thing!

As Zikoris mentioned, once the accounts are set up, managing them is pretty easy.

ghatko

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I would suggest calling TD Waterhouse directly and telling them that you want to setup an account with them. They then setup an appointment for me at a branch where I could go in and fill out the paperwork. It was a hassle, because I had to go to the branch, but it was fine. I wouldn't suggest going directly to a TD branch first as they have their own regular bank investing accounts which are separate from TD Waterhouse. That is probably why it was so confusing for you.

I have found the TD Waterhouse call center to be very helpful if I had any problems and I've never had to wait on hold. And like a previous poster mentioned, once the accounts are setup it us great and you don't have to deal with the branch again.

And if you want to know if they will refund the transfer fee (they did for me but I'm sure it is tied to the account balance) just call TD Waterhouse.

daverobev

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There is a specific set of steps for eSeries; yes it is more complicated than it should be. I don't have first hand experience.

http://www.givemebackmyfivebucks.com/2011/12/07/how-to-open-up-a-td-e-series-fund-account/

Try that. Yes, it is normal that branch people have no clue.

Zikoris

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I would suggest calling TD Waterhouse directly and telling them that you want to setup an account with them. They then setup an appointment for me at a branch where I could go in and fill out the paperwork. It was a hassle, because I had to go to the branch, but it was fine. I wouldn't suggest going directly to a TD branch first as they have their own regular bank investing accounts which are separate from TD Waterhouse. That is probably why it was so confusing for you.

I have found the TD Waterhouse call center to be very helpful if I had any problems and I've never had to wait on hold. And like a previous poster mentioned, once the accounts are setup it us great and you don't have to deal with the branch again.

And if you want to know if they will refund the transfer fee (they did for me but I'm sure it is tied to the account balance) just call TD Waterhouse.

The issue is that OP doesn't want a Waterhouse account - they want an e-series account, as Waterhouse charges fees.

Prairie Stash

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It took me a few years to figure things out.  I was learning on my own though.

Bank branches aren't always great, I've taught a few things to advisors.  The internet and phone works much better. 

http://www.tdcanadatrust.com/customer-service/contact-us/email/contact.jsp?referer=http://www.tdwaterhouse.ca/products-services/investing/index.jsp

It's painful starting out, I promise it gets easier once everything is set up. I think it's worth transferring the RESP.  From what I've seen it's easy to make monthly contributions to TD (I don't have an account). Long term they look to be very simple to maintain.

Would itrade allow $100 contributions? Or would you have it sit as cash until you actually purchased the stock? The problem with ETF, in Canada, is contributing small regular amounts is a pain.  Mutual Funds (and TD) are better, from what I've seen. Also, some banks give you better rates when you hit investment thresholds i.e. $25K (combined in RRSP and RESP) eliminates annual fees.

EDIT: TD does have a $25K threshold to eliminate the $50 annual fee, I'm not clear if its combined total or individual totals of each account. Anyone familiar? It's a goal to shoot for, I was happy the day I eliminated annual fees (I celebrate small victories, I'm a happy person).
« Last Edit: March 21, 2014, 09:29:51 AM by Prairie Practicality »

MorningCoffee

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There seems to be confusion with TD Canada Trust and TD Waterhouse. They are not the same.
But you can buy e-series through both.

Here's a pretty good step-by-step to open a TD Canada Trust account.
http://youngandthrifty.ca/how-to-apply-for-a-td-e-series-fund/

This is what I did. I went into a branch to get it done, since I wasn't a TD customer. Within about 1-2 weeks I was ready to go.

The branch isn't supposed to know how to set up for e-series accounts (although, really... come on.) Their website does specify their staff at branches cannot open or help with the online accounts.

Zikoris

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EDIT: TD does have a $25K threshold to eliminate the $50 annual fee, I'm not clear if its combined total or individual totals of each account. Anyone familiar? It's a goal to shoot for, I was happy the day I eliminated annual fees (I celebrate small victories, I'm a happy person).

An e-series account doesn't charge fees at all for any amount, which is why a lot of people choose to go with that rather than Waterhouse.