Author Topic: Canadian Investing: Index Funds with TD  (Read 4288 times)

McCannon

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Canadian Investing: Index Funds with TD
« on: June 03, 2015, 09:24:44 AM »
Hi there!

I am completely new to investing and only have a loose grasp on the whole thing, more specifically the ways in which I go about it.

I know that Vanguard has a Canadian subsidiary now, which is apparently a good thing, but in reading further on Vanguard's site, it says I need an account with a webbroker to purchase Vanguard's ETFs.

I want to invest in index funds as recommended by MMM, and I bank with TD. Can I use TD's webbroker service to purchase Vanguard index funds? TD also says they have exclusive online index funds available to TD customers.

What do I do? I just want to invest like MMM does with index funds. If TD is better than Vanguard in this respect, should I go with them?

Here is a link to a bit of info on TD's offer: https://www.tdwaterhouse.ca/products-services/investing/td-direct-investing/investment-types/mutual-funds/index-investing.jsp

Thanks all! Sorry for the n00bishness of this all. I just have no idea and am trying to learn.


PharmaStache

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Re: Canadian Investing: Index Funds with TD
« Reply #1 on: June 03, 2015, 09:31:47 AM »
Have you read canadian couch potato?  Here's some model portfolios to get you started- http://canadiancouchpotato.com/model-portfolios-2/ The e-series (exclusive to TD) are option #2.  Good option if you have a smaller amount of money and already bank with TD.

RichMoose

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Re: Canadian Investing: Index Funds with TD
« Reply #2 on: June 03, 2015, 10:32:15 AM »
To use Vanguard ETFs you need to open self-directed investment accounts with a brokerage. This can be TFSA, RRSP, or taxable (cash) investment accounts.

Some of the best options in Canada are:

- Questrade, especially if you are investing small amounts regularly (under say $2,000), are purchasing ETFs, don't require much in the way of trading support (you shouldn't if you are investing in ETFs as it is really quite simple)

- RBC Direct, if you are investing larger lump-sum amounts ($2,000+), you are purchasing just one position at a time, you are interesting in US dollar RRSP accounts at some point down the road, you are starting with a larger account balance (over $15,000)

- CIBC Investors Edge,  if you are investing larger lump-sum amounts ($2,000+), you are purchasing just one position at a time, you are interesting investing in US listed securities but want to keep your accounts in CAD, you are starting with a larger account balance (over $25,000)

fb132

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Re: Canadian Investing: Index Funds with TD
« Reply #3 on: June 03, 2015, 10:46:18 AM »
Like PharmaStache said, go to the canadian couch potato website, they reccommend 3 ETF's for your portfolio for people who just want to invest regardless how the market is doing knowing it is for long term..not only that, you pay only around 0,19% MER. I use questrade and it is easy to use, the only pain in the ass is when you first setup your account in the beginning. Once your account is officially opened, the rest becomes easy.

elaine amj

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Re: Canadian Investing: Index Funds with TD
« Reply #4 on: June 05, 2015, 05:59:58 PM »
I'm a noob in the process of doing the exact same thing. I have endured (over the the past few weeks) several lengthy meetings with TD to set ourselves up with the correct accounts. So far, I've had:

- two 2hr meetings (endlessly filling out long boring forms about ourselves and our investments, etc)
- an hour's meeting to sign forms to formally transfer our investments from our other mutual funds over to TD

It all takes SO LONG!!

Tonight, we started putting some money in my TFSA (I have $36k in unused contribution room YIKES!). We chose to do Canadian Couch Potato's Vanguard ETF plan. So 3 Vanguard ETFs in a 40-40-20 split. We had to (forgive me if I use the wrong terminology):
1. Transfer money into my TFSA account in TD Direct Investing
2. Purchase the Vanguard ETFs (took us a little bit to find the fund since it is under stocks)

I think I still have a journey ahead to get everything else invested. Next challenge will be to liquidate our current investments. We got nervous and ended up transferring them over to TD "in kind". Not sure what to watch out for but I think we'll eventually figure it out.

We chose TD because that's who we bank with and many ppl recommended it. I figured it was easier to keep things in one place rather than use Questrade. I had debated Tangerine (We have an acct) and TD e-series but ended up choosing Vanguard. DH also decided to keep our PH&N investments for now.

McCannon

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Re: Canadian Investing: Index Funds with TD
« Reply #5 on: June 05, 2015, 06:25:22 PM »
Have you read canadian couch potato?  Here's some model portfolios to get you started- http://canadiancouchpotato.com/model-portfolios-2/ The e-series (exclusive to TD) are option #2.  Good option if you have a smaller amount of money and already bank with TD.
Wow, this guy is pretty full on! Thanks for the link Pharmastache! I'll be reading as much of his stuff as I can. I've poked around in the investment alley and found some other useful resources as well. I'm not in a position so invest atm but I am doing my research and learning about it all. Thanks again!

To use Vanguard ETFs you need to open self-directed investment accounts with a brokerage. This can be TFSA, RRSP, or taxable (cash) investment accounts.

Some of the best options in Canada are:

- Questrade, especially if you are investing small amounts regularly (under say $2,000), are purchasing ETFs, don't require much in the way of trading support (you shouldn't if you are investing in ETFs as it is really quite simple)

- RBC Direct, if you are investing larger lump-sum amounts ($2,000+), you are purchasing just one position at a time, you are interesting in US dollar RRSP accounts at some point down the road, you are starting with a larger account balance (over $15,000)

- CIBC Investors Edge,  if you are investing larger lump-sum amounts ($2,000+), you are purchasing just one position at a time, you are interesting investing in US listed securities but want to keep your accounts in CAD, you are starting with a larger account balance (over $25,000)

I've heard a lot about Questrade and it looks pretty solid to me at this point. Thanks for the info!
Like PharmaStache said, go to the canadian couch potato website, they reccommend 3 ETF's for your portfolio for people who just want to invest regardless how the market is doing knowing it is for long term..not only that, you pay only around 0,19% MER. I use questrade and it is easy to use, the only pain in the ass is when you first setup your account in the beginning. Once your account is officially opened, the rest becomes easy.

I read your thread! Thanks for the information. I'll also be following along your posts too.
I'm a noob in the process of doing the exact same thing. I have endured (over the the past few weeks) several lengthy meetings with TD to set ourselves up with the correct accounts. So far, I've had:

- two 2hr meetings (endlessly filling out long boring forms about ourselves and our investments, etc)
- an hour's meeting to sign forms to formally transfer our investments from our other mutual funds over to TD

It all takes SO LONG!!

Tonight, we started putting some money in my TFSA (I have $36k in unused contribution room YIKES!). We chose to do Canadian Couch Potato's Vanguard ETF plan. So 3 Vanguard ETFs in a 40-40-20 split. We had to (forgive me if I use the wrong terminology):
1. Transfer money into my TFSA account in TD Direct Investing
2. Purchase the Vanguard ETFs (took us a little bit to find the fund since it is under stocks)

I think I still have a journey ahead to get everything else invested. Next challenge will be to liquidate our current investments. We got nervous and ended up transferring them over to TD "in kind". Not sure what to watch out for but I think we'll eventually figure it out.

We chose TD because that's who we bank with and many ppl recommended it. I figured it was easier to keep things in one place rather than use Questrade. I had debated Tangerine (We have an acct) and TD e-series but ended up choosing Vanguard. DH also decided to keep our PH&N investments for now.

I'm currently with TD for Banking and my TFSA as well as my RRSP so perhaps it makes sense to go with them for investing also. I like the sound of Vanguard quite a bit also, but I think that's just because MMM speaks so highly of it.  THanks for stopping in and for the info!