Author Topic: New investor - question. How RRSP and TSFA's work. Confused.  (Read 1412 times)

Mae80s

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New investor - question. How RRSP and TSFA's work. Confused.
« on: February 26, 2014, 12:19:10 PM »
Hmm, maybe I should x-post this on the other board too.

Anyway, I'm still figuring out how investing works. Have the other stuff down - budgeting, no debt, live under my means and saving...

... now figuring out how to make my money grow while I sock it away.

I've had an RRSP with RBC for a few years. It's the Canadian dividend fund with an MER of 1.21%. I've been doing some research and it seems that this isn't a wise bet. My money would be better in an ETF, particularly over the long-haul. So the question (and this might seem dumb) is this:

1) Can I have an ETF within an RRSP? RBC will ding me $50 for transferring the money out of the fund, but so long as I put it in another RRSP, I'm okay paying this.

2) Apparently the FTSE Canadian High Dividend Yield Index ETF (VDY) with Vanguard performs similarly to the RBC Dividend. Again, confused... is this an RRSP?

3) I have a TSFA with 10K in it ... earning a lame 1.6% interest. Can I put it in another investment product (that performs better) but that's still under the umbrella of a TSFA? I can't seem to find a straight answer. Is a TSFA always a savings account. Again apologies if this is a dumb question.

There's so much info out there and I'm relatively new at this, I find it all very confusing!

Thanks!

JohnGalt

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