Investing

TD direct investing x 4 accounts

  • Last Updated:
  • May 16th, 2020 5:58 pm
[OP]
Jr. Member
Apr 19, 2017
126 posts
23 upvotes

TD direct investing x 4 accounts

Hi RFD
Yesterday I was researching TD eseries as I have been looking into couch potato investing.

Usually I take forever to make a decision on opening accounts but after an hour of looking at TD I opened
TD direct investing - margin shorts
TD direct investing - margin
TD direct investing - TFSA
TD direct investing rsp

I honestly thought it was one account not 4
And I thought it was something suitable for beginner investors that could contribute an initial lump sum and continuously add funds weekly or monthly.

Question is
What account should I have used to start eseries investing for a beginner with $5k lump sum and $250 to $500 per month to start ?

Will I be charged an inactive fee for all accounts ?

How easy is it to close these accounts if needed?
4 replies
Sr. Member
Apr 14, 2006
689 posts
444 upvotes
St Johns
Bertiebigboss wrote: Yes it is to which question ?
Possible fee for RSP account if you have I guess < $5k

It’s easy to close accounts over the phone
Deal Addict
User avatar
Feb 1, 2012
1469 posts
2048 upvotes
Thunder Bay, ON
TD usually opens multiple accounts. Just don't use the ones you don't need. Maybe sometime in the future you will want to use them. Your first account should be RRSP or TFSA. Most people should start in a TFSA because it is more flexible and no taxes paid on withdrawal. With a TFSA if you withdraw you get that contribution room back the next year, whereas with a RRSP if you withdraw from an RRSP the contribution room is gone for good. If you are in a high tax bracket and expect to earn less when retired then an RRSP will be better, but for most people the TFSA is the best starter account.

Margin account lets you borrow to invest, but usually best not to use it unless both RRSP and TFSA room has all been used up. Short account... if you dont know what it is dont use it.

Here is a link to TD's fee schedule. The maintenance fee is listed on p.5.
https://www.td.com/ca/document/PDF/forms/521778.pdf

Basically there is a $25 quarterly maintenance fee unless you have a total of $15k across all your accounts (i.e. dont need to have $15k in each account). The mtce fee does not start until 6 months after you open the account, and will be waived if you have a min $100 monthly preauthorized contribution. Call them and set that up in TFSA or RRSP.
I solemnly swear, to never assume I have an inkling at which direction the market will head, and to never make any investments based on a timing strategy.

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