Investing

TD e-Series funds Megathread (Post all your questions here)

  • Last Updated:
  • Jul 16th, 2017 6:13 pm
Member
User avatar
Feb 2, 2010
247 posts
41 upvotes
Vancouver
Hi 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?
Newbie
Apr 8, 2017
58 posts
19 upvotes
fasacrifice wrote:
Jun 13th, 2017 3:20 pm
Hi 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?
1- yes

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

Cheers
Member
User avatar
Feb 2, 2010
247 posts
41 upvotes
Vancouver
ShuttleBoy wrote:
Jun 13th, 2017 4:21 pm
1- yes

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

Cheers
Thanks a lot. I thought that I need only $15k minimum to waive to fees. Is it $25k

And also after opening RRSP/TFSA Direct Investment account, I'll have 4 accounts? I thought they will switch my current accounts
Deal Fanatic
User avatar
Apr 16, 2006
5850 posts
313 upvotes
fasacrifice wrote:
Jun 13th, 2017 4:23 pm
Thanks a lot. I thought that I need only $15k minimum to waive to fees. Is it $25k

And also after opening RRSP/TFSA Direct Investment account, I'll have 4 accounts? I thought they will switch my current accounts
I believe it is now $15,000 in "household assets" with TD OR minimum $100 monthly pre-authorized purchase/contribution to waive the quarterly fees.
Deal Addict
Jul 23, 2007
3163 posts
1044 upvotes
Octavius wrote:
Jun 13th, 2017 11:45 pm
I believe it is now $15,000 in "household assets" with TD OR minimum $100 monthly pre-authorized purchase/contribution to waive the quarterly fees.
Correct.

Maintenance Fees are listed on pages 5 and 6 in the pdf brochure

TD Direct Investing
Commission Schedule
and Statement of
Disclosure of Rates
and Fees

https://www.td.com/ca/document/PDF/forms/521778.pdf
Sr. Member
User avatar
Jul 11, 2011
692 posts
393 upvotes
Ontario
fasacrifice wrote:
Jun 13th, 2017 3:20 pm

4) I think I can keep money as cash on those accounts. Any limitation on this? Any interest accumulates on the cash amount?
...most would recommend purchasing TDB8150 --> read this thread at CMF.

It currently pays .75%, and I believe the minimum purchase is $100
Newbie
Apr 8, 2017
58 posts
19 upvotes
fasacrifice wrote:
Jun 13th, 2017 4:23 pm
Thanks a lot. I thought that I need only $15k minimum to waive to fees. Is it $25k

And also after opening RRSP/TFSA Direct Investment account, I'll have 4 accounts? I thought they will switch my current accounts
Sorry thats correct, 15k is the minimum

Yea you will still have 4 accounts unless you decide to close the non investment ones
Sr. Member
User avatar
Apr 16, 2009
705 posts
118 upvotes
Vancouver
Octavius wrote:
Jun 13th, 2017 11:45 pm
I believe it is now $15,000 in "household assets" with TD OR minimum $100 monthly pre-authorized purchase/contribution to waive the quarterly fees.
Stryker wrote:
Jun 14th, 2017 3:20 am
Correct.

Maintenance Fees are listed on pages 5 and 6 in the pdf brochure

TD Direct Investing
Commission Schedule
and Statement of
Disclosure of Rates
and Fees

https://www.td.com/ca/document/PDF/forms/521778.pdf
For the $100 monthly pre-authorized contribution....can it literally just be $100 going into the account, or do they require the purchasing of funds as well to qualify?

From that document it seems like it can be either...but doesn't necessarily need to be both.
Member
User avatar
Feb 2, 2010
247 posts
41 upvotes
Vancouver
fasacrifice wrote:
Jun 13th, 2017 3:20 pm
Hi 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?
Thanks to all. Just converted my acoounts to TD Direct Invesment. It was simple and straight forward. The guy knew what he was doing.

I can keep money in those accounts as cash. My RRSP funds will be transferred as it is and TFSA will be transferred as cash then I can do my own allocation.

He also suggested that I open Cash TDDI but since I have lots of room in my RRSP and TFSA, I didn't do that. I wanna keep things simpler since I just started investing on these things. He also suggested USD accounts too for RRSP and TFSA but again didn't want that either.

And also as you guys confirmed, I need min $15k to wave the fees.

The RRSP account will be conveted to TDDI and old one will be closed. For TFSA, the old one remain open and I can close it later on.

What I'm thinking is that I'll be chosing Aggressive Portfolio on my RRSP since I won't use this money any time soon and still have little money on that account. I just used the money in that account for HBP about 2 years ago and just started to repay this year. I'm thinking to pay the minimum HBP payment for a while.

I'll be Balanced on my TFSA account since this my emergncy fund and most of my savings will go to this account. I'll get into stock and other stuff later on after learing more. What do you guys think? Any other suggestions?

And also I set up preauthorized payments to my RRSP every month but the guy said it'll stay there as cash then I need to do my own allocation. Is there a way that I can do that allocation automated too?
Newbie
Jun 16, 2017
1 posts
Hi all,

I've had money in td e series for about 5 years now. They have really gone up in last year. US one is up 44%. I'm thinking of selling ALL of my td eseries. I will have profited about $17000. Then I will wait a few months to a year and either buy a condo in Toronto (if they go down) or buy e series again (if they go down). I feel like they are really high now and will go down a lot, but that is just a guess.

So my questions are

1. Do I just click on the sell button on all my e series index funds to get money back?
2. Will I be charged anything for selling my funds? Are all transactions free, as long as it's not a fund I bought within 30 days?

Thanks for all your help. This is my first post here. Always lurked. Found out about td e series through this site so thanks a bunch!
Sr. Member
User avatar
Apr 16, 2009
705 posts
118 upvotes
Vancouver
greg543 wrote:
Jun 17th, 2017 1:23 pm
Hi all,

I've had money in td e series for about 5 years now. They have really gone up in last year. US one is up 44%. I'm thinking of selling ALL of my td eseries. I will have profited about $17000. Then I will wait a few months to a year and either buy a condo in Toronto (if they go down) or buy e series again (if they go down). I feel like they are really high now and will go down a lot, but that is just a guess.

So my questions are

1. Do I just click on the sell button on all my e series index funds to get money back?
2. Will I be charged anything for selling my funds? Are all transactions free, as long as it's not a fund I bought within 30 days?

Thanks for all your help. This is my first post here. Always lurked. Found out about td e series through this site so thanks a bunch!
TD e-Series are a buy and hold type of index fund. They are not meant for "market timing".

If you want to cash out, then yes all you do is click sell. You will not be charged anything provided it has been more than 30 days since the newest funds were added.
Sr. Member
Feb 9, 2013
791 posts
85 upvotes
Richmond Hill
Has anyone wonder how much their TFSA would be worth if they contributed the full limit from 2009-2017 on Jan 1 to TDB902?
Newbie
Oct 12, 2014
13 posts
North York, ON
So I recently transferred approximately 27k to a TDDI LIRA and went with a Assertive CCP model portfolio (25% to each of the 4 TD e-series securities) and after 1 month its already down $800. Each of the securities is losing making my personal rate of return -2.62% so far.

Unless I not understanding something, how exactly does one just put money into the e-series and sit and forget about it, when its seems to be headed in a downward trend. In other words, how are people people 8% rate of return on these 4 securities year to year?

Am I doing something wrong?
Newbie
Sep 15, 2014
75 posts
31 upvotes
yellowlight18 wrote:
Jul 9th, 2017 1:48 pm
So I recently transferred approximately 27k to a TDDI LIRA and went with a Assertive CCP model portfolio (25% to each of the 4 TD e-series securities) and after 1 month its already down $800. Each of the securities is losing making my personal rate of return -2.62% so far.

Unless I not understanding something, how exactly does one just put money into the e-series and sit and forget about it, when its seems to be headed in a downward trend. In other words, how are people people 8% rate of return on these 4 securities year to year?

Am I doing something wrong?
The 8% average return is averaged over the long-term (think in terms of the past 30 years). In any given year, your rate of return can range from -40% to +40% (insert any arbitrary number here). The thing is, you will not get the long-term average unless you invest over the long-term through the good and BAD years. There's no way to avoid the down swings unfortunately, so you just have to set it and forget it.

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