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Learning, Sharing, and Teaching => Investor Alley => Topic started by: human on October 12, 2017, 05:55:51 PM

Title: RRSP Full, pay 10 bucks to reinvest distributions?
Post by: human on October 12, 2017, 05:55:51 PM
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.
Title: Re: RRSP Full, pay 10 bucks to reinvest distributions?
Post by: human on October 12, 2017, 06:13:28 PM
Thanks Ben, I guess a whopping 200 bucks not invested won't hurt my returns all that much this year!!
Title: Re: RRSP Full, pay 10 bucks to reinvest distributions?
Post by: Heckler on October 12, 2017, 11:23:57 PM
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.
Title: Re: RRSP Full, pay 10 bucks to reinvest distributions?
Post by: powersuitrecall on October 13, 2017, 08:45:01 AM
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.
Title: Re: RRSP Full, pay 10 bucks to reinvest distributions?
Post by: thriftyc on October 14, 2017, 06:55:47 PM
DRIP is the way to go.... Use new contributions as your main rebalancing mechanism.
Title: Re: RRSP Full, pay 10 bucks to reinvest distributions?
Post by: powersuitrecall on October 20, 2017, 10:54:29 AM
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!
Title: Re: RRSP Full, pay 10 bucks to reinvest distributions?
Post by: human on October 21, 2017, 01:00:19 AM
Ughh thanks for the reminder I still haven't done it!!!!!
Title: Re: RRSP Full, pay 10 bucks to reinvest distributions?
Post by: thriftyc on October 21, 2017, 06:23:30 PM
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.
Title: Re: RRSP Full, pay 10 bucks to reinvest distributions?
Post by: GreatLaker on October 21, 2017, 07:23:24 PM
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.