The Money Mustache Community
Learning, Sharing, and Teaching => Investor Alley => Topic started by: human on October 12, 2017, 05:55:51 PM
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So I never really thought of this problem as I started investing in my RRSP. I have no more contribution room left and got a distribution of about 200 bucks. I'm with BMO, I don't want to pay 10 bucks to reinvest this, I normally invest a couple of thousand at a time. What can I do here?
Going forward I assume I could set up DRIP, would that cause any tax problems? I assume not am I right? I'm real dumb about what can be done in each account without getting screwed in tracking etc.
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Thanks Ben, I guess a whopping 200 bucks not invested won't hurt my returns all that much this year!!
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Set up DRIP. Just call BMO to do it.
With BMO, it can only be done with $CAD funds, not USD. You will still end up with cash leftovers.
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I'm with TD, but here's what I do. I take my distributions plus my yearly contributions and invest in efund mutuals as per my asset allocation (there is no cost to buy/sell these at TD). Once a year I sell the efunds and add to my ETFs. The fees on the efunds are higher (~0.5%), but I feel it's worth it to stay invested and avoid a bunch of trade charges.
The other option is to go with Questrade where ETF purchases are free.
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DRIP is the way to go.... Use new contributions as your main rebalancing mechanism.
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I know this is not my thread, but I'd like to thank everyone for the indirect nudge. I called today and turned on DRIP for all my ETFs at TD. So simple. It makes much more sense than complicating things with eFunds.
Cheers!
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Ughh thanks for the reminder I still haven't done it!!!!!
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I know this is not my thread, but I'd like to thank everyone for the indirect nudge. I called today and turned on DRIP for all my ETFs at TD. So simple. It makes much more sense than complicating things with eFunds.
Cheers!
I use TD for my ETF's as well, super easy to have the drips reinvested, no cost.
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I invest my distributions in either a broker HISA or low fee balanced index mutual fund.
Here are two articles on broker HISAs:
http://www.canadiancapitalist.com/high-interest-savings-accounts-at-discount-brokers/
http://canadiancouchpotato.com/2010/10/12/parking-cash-in-your-portfolio/
They are savings accounts that you purchase in broker accounts like shares of a mutual fund. Interest rates are not great but better than nothing.