Personal Finance

TD eSeries - "Switch Funds" in RRSP

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  • May 25th, 2019 1:20 pm
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[OP]
Newbie
Aug 16, 2008
55 posts
2 upvotes
Kitchener

TD eSeries - "Switch Funds" in RRSP

I have 4 of the TD eSeries Index funds in my RRSP account. I would like to change up the asset allocation. I see that you can 'Switch Funds' from the main Fund page. My question is, if I switch from one registered fund to another, does the money stay registered? Can anyone verify?
13 replies
Deal Addict
Apr 8, 2010
1307 posts
62 upvotes
Burlington
You should make sure you don't incur any penalties for not meeting minimum hold time requirements.
[OP]
Newbie
Aug 16, 2008
55 posts
2 upvotes
Kitchener
Anathem wrote: You should make sure you don't incur any penalties for not meeting minimum hold time requirements.

Good point Anathem. There is a penalty for selling purchases within the last 90 days. However, I've been adding to this on a regular basis for years. I guess the question is, are the 'newest' units sold first, or the oldest. If oldest, then there is no problem. If newest, there may be a problem! Can anyone confirm this?
Deal Addict
User avatar
Sep 30, 2003
3908 posts
121 upvotes
Toronto
as 2nd poster said, it stays registered however, as 3rd poster mentioned, a lot of the e-series funds have 90 day hold times so be very careful about switching, particularly if you *think* that you deposited the money more than 90 days ago but forgot to account for distributions etc. that may be more recent.
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There is no happy ending
Member
Mar 27, 2005
383 posts
14 upvotes
The oldest units are sold first.
darrencope wrote: Good point Anathem. There is a penalty for selling purchases within the last 90 days. However, I've been adding to this on a regular basis for years. I guess the question is, are the 'newest' units sold first, or the oldest. If oldest, then there is no problem. If newest, there may be a problem! Can anyone confirm this?
[OP]
Newbie
Aug 16, 2008
55 posts
2 upvotes
Kitchener
Justin C wrote: The oldest units are sold first.

Excellent. That means this should all work as designed!

Thank you all for your feedback!
Deal Fanatic
Jul 1, 2007
8333 posts
1326 upvotes
"switch" is the only way to do this. "sell" withdraws the money from the RRSP.
Money Smarts Blog wrote: I agree with the previous posters, especially Thalo. {And} Thalo's advice is spot on.
Jr. Member
Sep 3, 2009
138 posts
44 upvotes
Once the 90 day penalty period is up, how often can you switch/redistribute between funds before TD tells you to open a TD Waterhouse account?
Newbie
Jan 6, 2011
1 posts
Mississauga
darrencope wrote: I have 4 of the TD eSeries Index funds in my RRSP account. I would like to change up the asset allocation. I see that you can 'Switch Funds' from the main Fund page. My question is, if I switch from one registered fund to another, does the money stay registered? Can anyone verify?

While buying these funds, Banks must have checked your risk tolerance and based on that you can invest only in those funds which are within these limits assigned to you.
Deal Fanatic
Jul 1, 2007
8333 posts
1326 upvotes
hookworm wrote: Once the 90 day penalty period is up, how often can you switch/redistribute between funds before TD tells you to open a TD Waterhouse account?

TD Mutual Funds will get on your case for active trading, whether you have it in an e-series account or a TD Waterhouse account.
Money Smarts Blog wrote: I agree with the previous posters, especially Thalo. {And} Thalo's advice is spot on.
Deal Addict
Apr 18, 2013
2877 posts
1188 upvotes
Canada
If I switch on a weekend, what price is used...the past Friday or upcoming Monday?
Deal Addict
Mar 10, 2010
1198 posts
258 upvotes
gbill2004 wrote: If I switch on a weekend, what price is used...the past Friday or upcoming Monday?
The end of day price of the next business day would be used (Monday in this case). Also, this is an old thread, and the current short-term trading fee is down to 30 days now instead of the old 90.
Deal Addict
Apr 18, 2013
2877 posts
1188 upvotes
Canada
Clacker wrote: The end of day price of the next business day would be used (Monday in this case). Also, this is an old thread, and the current short-term trading fee is down to 30 days now instead of the old 90.
Thank you.

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