In Praise Of TFSA's

[cc]

TD said no ETFs .... mutuals they will ... not sure if it is same or other banks



Why? My guess is that because ETFs are known for much lower fees to buy, maintain and sell (one of the major plus's for them) along with no or low penalties for cashing them in at any time



Edit - I just found a notice that TD is adding an ETF purchase option to its sites - but seems others may already be doing this

[priscilla1961]

TD said no ETFs .... mutuals they will ... not sure if it is same or other banks



Why? My guess is that because ETFs are known for much lower fees to buy, maintain and sell (one of the major plus's for them) along with no or low penalties for cashing them in at any time



Edit - I just found a notice that TD is adding an ETF purchase option to its sites - but seems others may already be doing this

Do you have TD has direct invest account?

[Mel Gibson]

Open a TFSA account.  Simple as that.



TELL them that this account will be "self-directed."  Do not let them do otherwise.  You can "self-direct" easily.  Very easily.



I do.

[Mel Gibson]

This means buying and selling on your own.  You can buy anything listed on the market.  Never buy mutual funds.  The banks take too much.  You can buy essentially the same thing with a self-directed...  "IShares" is a good example.

[Mel Gibson]

Set it up to "DRIP."  You'll have to call, say, Waterhouse, after the account is set up to ask for this.



Ideally, you'll buy enough shares that pay enough dividends to automatically (and without a fee) buy more shares once the dividend is paid out.  This is an easy long term way...  For instance, around 100 shares of BMO will pay enough dividends to DRIP another share automatically quarterly.  BMO has decent dividends.  Many have less, some pay more.  Some don't pay dividends at all.



Do your homework, and know what you want to do with the investment.  You want to set it and forget it?  DRIP it.

[Mel Gibson]

TD said no ETFs .... mutuals they will ... not sure if it is same or other banks

As was already mentioned, you need to open a self-directed Waterhouse account.  TD and Waterhouse are similar, but are nonetheless separate entities.



You CAN open a Waterhouse TFSA account at a TD.  I've done it.  I am living proof this is possible!  ac_razz

[Mel Gibson]

Here's what a TD (Waterhouse) self-directed account will look like:





http://i61.tinypic.com/15x0rvq.jpg">

[Annie]

I have an investment at TD Waterhouse with the option of TFSA.  I'm still confused and not sure if I want to take the risk. I have 3 1/2 years until I can withdraw money from it tax free.  I'm more leaning towards just depositing and interest and being on the safe side.  Or at least till I read more on it and understand better.

[Annie]

Here's what a TD (Waterhouse) self-directed account will look like:





http://i61.tinypic.com/15x0rvq.jpg">

It all seems so confusing to me and I've tried several times to understand it  ac_crying

[Mel Gibson]

I have an investment at TD Waterhouse with the option of TFSA.  I'm still confused and not sure if I want to take the risk. I have 3 1/2 years until I can withdraw money from it tax free.  I'm more leaning towards just depositing and interest and being on the safe side.  Or at least till I read more on it and understand better.

There is no risk.  You can open up a TFSA without buying a thing.  It's just a "vehicle," so to speak.



And I'm not sure what investment you have with them now, but I've never heard about a "3 1/2 year" time frame until tax exempt.  That's a new one to me, and it certainly doesn't apply to a TFSA...

[Mel Gibson]

It all seems so confusing to me and I've tried several times to understand it  ac_crying

Don't listen to the rest.  Listen to me...



A TFSA is just a "vehicle" to invest.  No different than what was before, except capital gains (profits) are not taxed.



It is a registered savings "vehicle."



Put anything you like in there.  You can!  I prefer to self-direct, since it always works out better that way.

[Annie]

I have a 10 year RDSP, in 3 1/2 years I can withdrawl tax free.

[Annie]

It all seems so confusing to me and I've tried several times to understand it  ac_crying

Don't listen to the rest.  Listen to me...



A TFSA is just a "vehicle" to invest.  No different than what was before, except capital gains (profits) are not taxed.



It is a registered savings "vehicle."



Put anything you like in there.  You can!  I prefer to self-direct, since it always works out better that way.

I'm always worried about potential loss. I want a guaranteed investment (which is what I have)  not chance of losing anything.

[Mel Gibson]

Registered Disability Savings Plans are a completely different thing.  A completely different "vehicle," so to speak...

[Annie]

Ya I know but it's the same option for TFSA's