Is Your Toilet Flushing Hot Water ?

That is a very odd title, but it did happen. My Brother had just moved into a new town-home complex, and there were a few idiosyncrasies that he found in his new place, but he didn’t notice this issue for a little while after moving in. He really only noticed one day when he sat down and noticed the warmth emanating from the commode, and only then realized that his toilet was connected to the hot water system for his house (not a huge issue, but it would waste a little money for a long time).

Pyromania is burning the unburnable!

No, it wasn’t that hot

Are you flushing hot water in your financial home? How many fees are you paying that you are unaware of, or worse, are ignoring? What kind of fees am I commenting about?

  • Bank fees, do you still pay those? There are so many banks that offer zero fee accounts, why are you flushing that hot water (money) down the toilet?
  • Entry fees, exit fees and high MER Mutual funds? Seriously, how many times do we (pretty much everyone writing about investing) have to write about this topic? Evidently, we have not hit the maximum count yet. They are called Index Funds, look it up.
  • What are you paying in Insurance rates? Are you shopping around? Remember that insurance is only for ” … in case stuff happens …” (to paraphrase Chris Rock).  If you are overpaying for insurance your money is flushing away.

Am I missing any other Financial Toilets that flush hot water ?

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Financial Web Page Usefulness

After checking out yet another Mutual Fund web site I ended up putting together this interesting Ven Diagram of the information I was able to discern from the site:

Mutual Fund Venn Diagram

So Many Terms So Little Information

I realize most web sites are rarely full of useful information (some might say the same of this site), but a little more information might be helpful.


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Mutual Fund Order Rejected (again)

My friends at TD Mutual Funds ended my year with a bang, by cancelling a Mutual Fund order that I had put in for my son’s RESP Account. You remember the last time I tried to do this, I ran into issues that my Trading Profile was not up to date, and thus my order was cancelled, well, it happened again, thanks to my Trading Profile (or Risk Profile).

I was following my own end of year advice, trying to put money into my son’s RESP account, and decided it would be prudent to do this on-line, and attempted to by some TD E-series Funds for the account. I put in my orders and in less than an hour an e-mail arrived outlining why my order was refused, my Trading Profile (or Risk Profile was not up to date. The cry of anguish from me could be heard in Orleans.

Transacation Cancelled

Transaction DENIED!!

One of my new goals for this year, is to fight through the red tape, that is set up to stop me from getting what I want, so I dutifully called the number supplied (in the rejection e-mail), and after a bunch of “security questions”, the young man on the phone told me he could help me “update my investing profile”, which allegedly had not been updated since 2007. I could have asked what I was doing last year when “updated my profile” for another account, but I did not.

I then spent 10 minutes answering questions about my investing beliefs and ideas, of which, two of the questions were specific to this investment account (an RESP). Those  two questions were only specific in that it was, “When do you need this money” question, but I suppose they are savings vehicle specific (in an obtuse way).

Was that all that needed to be done? No! My wife also had to go through the exact same interrogation, as the account is jointly held by her and I (for my son). She then had to answer 10 minutes of the exact same questions. After about 1/2 an hour, I was informed that I was allowed to resubmit my mutual fund purchase (yes, I had to resubmit the purchase, they could not simply reuse the rejected request).

What have I learned from this:

  1. I should follow my own advice, and move this account somewhere else, as I refuse to go through this inquisition again.
  2. TD needs to revamp their Mutual Fund Investing profiles to cover all Mutual Fund accounts held by someone instead of forcing folks to keep more than 5 investing profiles up to date (yes, evidently I have 5 investing profiles). Given the questionnaire has 12 questions and only 2 have to do with the specific investment that is the least that can be expected here.
  3. I should re-read my old posts and remind myself how painful these process can be.

A wonderful way to end 2015. For those of you hoping I write less whining and ranting articles this year, sorry, doesn’t look like that will happen.

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TD E-Series RESP Beartrap

Just when I thought I couldn’t possibly find anything more to write about with my kids’ RESP account, TD puts a beartrap in the process and I end up with yet another article to write.

I can already hear my regular readers muttering, that I am not going to rehash another visit to my local TD Branch, am I? Yes, and no (after a fashion).

Let us rewind to about 4 months ago, when I changed all of my TD Mutual Fund savings vehicles, into accounts that allow for the purchase of the TD E-series Index Funds. Remember I did outline in Quicken and transferring E-series Index Funds, how to change from the I-series funds to the E-series versions (which have lower MER fees), little did I know that with that change, I set the beartrap, that I stepped on Friday evening.

E-series bear trap

It snapped shut tight

I went to my local branch of TD Friday because my youngest daughter’s tuition fees were due, so I made my appointment at my local branch last week, to extract the money I need to pay for this term, because, as we know, you must go in to a local branch to prove your child is in a reputable program (for an RESP), before you can have the RESP funds. I had my letter, I knew what part of the portfolio I wanted to liquidate, so what could go wrong?

I arrived at the branch, and I was dealing with a polite young man, that I had dealt with previously, I explained quickly what I wanted, and he logged in and started clicking and typing. Time passed, screens seem to fly by and then return and I started to wonder, “What is wrong?”.

After about 10 minutes the gentleman turned to me and said, “We have a problem here”. At that moment, the bear trap snapped shut on my ankle.

The “Advisor” then explained that the in-branch Financial Advisor/Mutual Fund persons are not allowed to touch E-series funds. I believe my response was a confused but polite, “I beg your pardon?”. The young man went on to explain that he could only trade the I series funds, but that the E-series funds were out of his “jurisdiction”.

At that moment I almost asked, “So I have a Save only account?” (i.e. I am allowed to put money in, but not allowed to take any money out). Luckily that is not quite the case, however, there is yet another convoluted methodology that I must follow to extricate funds from my daughter’s RESP. Let’s just wander through the steps:

  1. Get a proof of enrollment letter from the post secondary school she is attending. Luckily I already had that from September
  2. Make an appointment with the local branch to do an RESP withdrawal. This is so someone trusted at TD can attest to the letter that you got in the first place (hint for TD, maybe I could have the letter sent to YOU or faxed?).
  3. NEW: Go on-line to my TD Mutual Fund account, and move the funds I want, into a TD Money Market account. This is a fund that the Mutual Fund expert or Financial Advisor can do something with. Do this at least 2 days before you go to the branch (to allow the transaction to go through).
  4. Go into the branch and spend 1/2 an hour answering questions, and possibly having to review your investing profile, but eventually put through the transactions to cash in the funds you want.
  5. Wait for the funds to arrive on-line

I would have thought (if you have wandered through my RESP page) there was no other way for this to become a more complicated methodology, unfortunately, I was wrong.

As an epilogue to Friday, I also asked what would happen if my RESP was with TD Waterhouse (in hindsight what I should have done in the first place)? It becomes more complicated, and at the end of your visit to the local branch, you must then wait for TD Waterhouse to release the funds to you (so you need to wait longer for it).

I must now return this Wednesday to attempt the same thing I attempted back on Friday.

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Quicken and Transfering Mutual Funds?

So I tripped across an interesting feature in Quicken’s investment tracking feature where, in one transaction (well, it does the delete and add transaction for you from what I can see), you can transfer the proceeds of one mutual fund into another mutual fund. Big deal you say? Well for me over the past few weeks, this has made my life simpler tracking my TD Mutual Fund Savings Accounts.

Next question, why do you have TD Mutual fund accounts, aren’t you a TD Waterhouse dude? Well I didn’t initially start with TD Mutual Fund accounts (remember there are 3 different sylos in TD, the Banking Side, The Mutual Fund Side and TD Waterhouse (there is also insurance and a few other sides, but I shall leave them out for discussion purposes)). When I first opened RESPs, and an “Emergency” account I was a customer of Canada Trust, and they didn’t really have an “Investing Wing” (and I wouldn’t have known what to do back then).

TFSA How To

Another intricate Dance to Change Things at TD

When TD purchased CT many moons ago (a transaction in terms of the TD computer systems is not complete, I’d like to point out), all my CT Mutual Fund accounts became TD Mutual Fund accounts. All of my CT mutual funds turned into I-series TD Mutual Funds (again, before I really understood the problems with higher MER Mutual Funds).

I finally got off my lazy derriere and have transferred all of those I-Series funds to E-series funds, using the same models as outlined in Ideal Portfolios  :

TDB909 – TD Canadian Bond Index (e-Series)
TDB900 – TD Canadian Index (e-Series)
TDB902 – TD US Index (e-Series)
TDB911 – TD International Index (e-Series)

To be able to use these Index Funds in your Mutual Fund account you must Mail (by Canada Post, no Faxes allowed) the following:

Your TD e-Series Funds account will be opened after your original, signed application, and TD e-Series Funds Understanding and Consent form are received by TD Investment Services Inc. (TDIS). Unfortunately, we are unable to accept applications by fax.

This is assuming you already have an account. If you don’t have an account, might I suggest going straight to TD Waterhouse (and not worry about opening a “TD Mutual Fund” account)?

Once you get all of your “OK you can use them” confirmations, you can simply go on-line and transfer the associated I-series fund to an E-series fund (and thus save on MERs and such).

Finally we have reached the Quicken part of the discussion, if you have your Mutual Fund savings account set up in Quicken (and why wouldn’t you?), you would go to the account and simply choose Enter Transaction .

If you search down the list of possible transactions (once the dialog box comes up), select Mutual Fund Conversion, and the dialog box will then only ask you for:

  • Date of the Transfer
  • The Mutual Fund it is coming “from”
  • The New Mutual Fund to use (you may have to create that in Quicken)
  • How many shares were created of the New Fund
  • How much the price was (per share) of the new fund

And let it run it’s merry way. Quicken removes the holdings of the old security and adds the new security holdings to your account, and you are now tracking the right funds.

I have always been pretty lazy when it has come to tracking my investments, but I am trying hard to keep a closer track of all of my various investment vehicles (as I close in on retirement).

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