1- yesfasacrifice wrote: ↑Jun 13th, 2017 3:20 pmHi All,
I just decided to open TD Direct Inverstment account and read through the thread about 40 pages and learned a lot already. I just need to confirm few points.
I have a chequing account and credit card with TD and also Mutual Fund RRSP and High Interest TFSA.
I'd like to switch both RRSP and TFSA (total value is about $25k) to Direct Investment account. The reason I wanna do that rather than e-series is that I have stock option at my company and will buy some stock soon. Here are my questions;
1) Can I buy and sell stocks with either account with TD Direct Invest?
2) I still don't understand what DRIP exactly is. Any simple defination for it and hot it works?
3) I just made an appoinment with a branch and will do the conversion. During this appoinment can I choose to transfer the money as cash and then do the portfolio myself later on?
4) I think I can keep money as cash on those accounts. Any limitation on this? Any interest accumulates on the cash amount?
2- MFs pay distributions that can be monthly or annually. DRIP means that the diatributions will be used automatically to buy the same Mutual fund that is paying it.
3- Your direct investing account will not be opened on the spot, it take few days as far as i know. Once the account openning is complete you can transfer money directly from your TFSA/RRSP to their corresponding direct investing account and build your own portfolio
4- you can keep money as cash no problem. As for interest i am not sure since i leave minimum cash.
Just make sure you have at least 25k in total in both accounts to avoid the maintenance fees