I am the annuitant under the registered retirement income fund rrif. Going forward, i would like to start investing to my rrsp account with low mer mutual funds or etfs. Interest rates are subject to change without notice at any time. Every effort has been made to ensure that the material is correct at time of publication, but we cannot guarantee its accuracy or completeness. The issue is, rbc do not seem to have many low cost options. As a selfdirected investor, its important to understand what youre going to pay and how you can save. The purchase takes a few days to settle and so does the sell. An rrsp is a personal savings plan that lets you save for your retirement on a taxsheltered basis, so your money grows faster. Fcsi, financial planner, rbc wealth management, vancouver 1. Some institutions may require a higher minimum purchase than whats indicated, depending on the gic. Rbc online banking and telephone banking are provided by royal bank of canada. Direct investor in this issue what is socially responsible. It is an investment account registered with the canadian federal government designed to help you save money for your retirement on a taxsheltered basis.
If you have a private pension, then the amount you are allowed to contribute to your rrsp will be reduced, to. Invest for less with competitive pricing on commissions and fees at rbc direct investing. There are two ways to open most investment accounts with a bank. Its time for canadians to make their final rrsp contributions for the 2015 tax year. You may be able to deduct carrying charges and interest you paid to earn income from investments other than rrsps. In this regard, the government permits canadians to buy, sell, and hold a number of investments in their rrsps. If you do not have sufficient cash on hand to make an rrsp contribution.
Rbc financial planning is a business name used by royal mutual funds inc. Rbc di, rbc wealth management financial services inc. Thankfully, a new crop of lowfee funds is changing the game. Transfer authorization for registered investments rrsp, lira, lrsp, rif, lrif, lif. Unfortunately, other institutions rbc arent quite as generous. If you own a business, talk to your financial or legal advisor to see how segregated funds could protect your money. Rbc direct investing is a business name used by rbc direct investing inc. Understanding how to convert your rrsp to a rrif rbc.
For most people the answer is yesalthough if you have a good pension at work, you can certainly contribute less to your rrsp than someone without one. While all canada revenue agency web content is accessible, we also provide our forms and publications in alternate formats digital audio, electronic text, braille, and large. Choose carefully when opening investment accounts the star. Rrsp stands for registered retirement savings plan. It should be noted that my employer will match any contributions made to either a rbc royal bank, rbc dominion securities, or rbc direct investing account. A 1% annual investment management fee for your tfsa is automatically. Account transfer dept 277 front street west, 8th floor. The unofficial rbc direct investing thread page 19. Investors are responsible for their own investment decisions. Another way to get around high rrsp admin costs is to use the lowfee rrsp accounts offered by credential direct and td waterhouse, which cost.
Once the mortgage is repaid, put the amount of mortgage payments and the income tax savings in a tfsa. All rbc direct investing clients enjoy a low commission. Financial planning services and investment advice are provided by rmfi. Registered retirement savings plan rrsp rbc royal bank.
You cannot deduct fees charged directly to you by the plan administrator of an rrsp or fees deducted directly from an rrsp. A registered investment plan where investment earnings are taxdeferred until retirement, and contributions are taxdeductible. Its not the super cheapest option out there, but i really like their interface and trading options. Operation of account agreement rbc direct investing. A registered retirement savings plan rrsp is a personal savings account that has special tax advantages. A rrif is an extension of a registered retirement savings plan rrsp. Rrsps can hold a variety of qualifying investments, including treasury bills, guaranteed interest products, mutual funds, segregated fund contracts, bonds and equities. This etf appears much more appealing than the other mutual funds from a cost perspective. How do you invest with your tfsa with questrade its actually very easy and this monstrosity of a post will hopefully explain the how and why, and the stepbystep on how to set up a lean mean tfsa investing machine portfolio. Rrsp investing benefits rbc dominion securities rbc. Do you think moving to rbc direct investing is a wise step or it will be moving to another. The fee is also waived if a client meets any one of the following criteria. Has signed up for a preauthorized contributions 10 i.
Tfsa, rrsp and rrif fee schedule public tax free savings account plans tfsa tax advantage savings account full or partial transfer to a financial institution, other than cibc. Receipts for rrsp contributions made from march 2 to december 31 are mailed in late january. While your rrsp is used to save for your retirement, a rrif is used to systematically draw income during your retirement. I am fed up of td waterhouse and its excessive fees. Rbc mobile is operated by royal bank of canada, rbc direct investing inc. Your annual contribution can be deducted from your gross income, reducing the amount of income tax you pay that year. No safekeeping charges for rbc gold or silver certificates. Rbc direct investing offers access to one of canadas largest online fixed income inventory. Put the income tax savings from the rrsp against the mortgage. Getting more from my rrsp and tfsa rbc financial planning. It can contain a variety of investments, such as treasury bills, gics, mutual funds, bonds, equities and savings deposits. At a branch level and through their discount brokerage. All institutions charge selfdirected administration fees of which the cost will vary.
Rrifs offer the same investment options and taxdeferred growth as rrsps. Tcus registered retirement savings plan rrsp offers you more than money saved for some day in the future, it also provides you tax benefits today. As well, some types of investment contracts, such as registered. Opening an account there is usually no charge to open an rrsp account. From our point of view, the asset which provides the best return over a long period of time is the least risky. Because segregated funds are an insurance product, they may be protected from creditor claims due to bankruptcy.
With no pension, you can contribute up to 18% of your income to an rrsp each year. I promise i will explain how to set up a tfsa investing portfolio, but first, lets delve into what exactly is a tfsa is and look at the background behind it. Therefore, we consider a well diversified portfolio of exchangetraded funds etfs, which are funds which hold stocks, to be less risky than bonds. Transfer free from your rbc di rrsp to your rbc branch rrsp. The following charts show a selection of our broad and diverse bond and gic offerings, and list some of our most competitive rates. This includes fees to manage or take care of your investments other than administration fees paid for rrsps. Rbc direct investingwhich pioneered dseries funds in. Fight for no fees okay, so some financial institutions are amazing ing cough ing and dont charge you fees to move your money.
Obviously rbc branch rrsp is limited in what it can hold so just sell the investment in the di account and transfer over cash. Selfdirected rsp, tfsa and rif accounts registered if credit balance is. Deadline to contribute to your rrsp for the 2015 tax year continued on page 2. At rbc royal bank, you can now meet with an advisor online to discuss your retirement savings goals. A registered retirement savings plan rrsp gives you a fair degree of latitude in how you financially prepare for your retirement. With an incoming rrsp transfer we can reimburse a portion of the fee paid as long as the funds are deposited to an rrsp gic when they arrive at accelerate financial.
Unfortunately, much of what youve heard about rrsps is. Rbc direct investings account services offer an effective way to automate your. If you have a group rrsp, your company may cover this cost for its employees. Quebec education savings incentive transfer between registered education savings plans. Rrsp interest rates are subject to change at any time and without notice. You should carefully consider the funds investment objectives, risks, fees, charges, expenses and commissions before investing. The rrsp interest rates listed is intended as a general source of information only. The rates shown are for atmaturity interest payment options and may change without prior notice. Here are the reasons why i think royal bank of canada deserves to be one of your investment picks 1. An rbc rrsp can hold a variety of investments, including guaranteed investment certificates gics, mutual funds, portfolio solutions and savings deposits.
Rbc canada, rbc wallet, rbc rewards and rbc egift are operated by royal bank of canada. The dumbest move is not making an rrsp contribution, especially if one has a high income and no pension plan. Automated account services rbc direct investing rbc royal bank. With rbc direct investing, i can buy one and sell the other right away. The one caution with that is that rbc di does not seem to be very good for trading pink sheet stocks. Stepbystep guide on how to invest your tfsa with questrade. Make sure you understand what these fees are before you open an account. Transferout fees, reimbursements, and time lines rrsps. Tfsa rules the taxfree savings account tfsa allows your investments to generate returns without being taxed, so that your savings grow at a faster rate. Please consult your advisor and read the prospectus before investing. Transfer authorization for registered investments rrsp. My experiences with rbc have been less than pleasant. The official tfsa rules are outlined in the federal income tax act, and the canada revenue agency cra is the authority that administers and oversees the enforcement of these regulations. Guarantee your principal and interest2 with complete access to your rrsp funds.
Why pay the tax man when you can keep the money, defer taxes and earn income on your hard earned money. Rbc insurance guaranteed investment funds instructions for. From a value perspective, buyingselling isnt a problem for the exchange but you still have to wait to withdraw your money for the transactions to settle. However, once an rrsp is converted to a rrif, you can no longer make. Has been an rbc direct investing client for less than six months this allows new clients. Cash and margin interest rates rbc direct investing. This booklet contains important information about your account, including the. Registered retirement savings plan rrsp contribution receipts mailing schedule. Direct transfer of a single amount dpsp, rpp letter of authorization to transfer security to nonregistered account.
Registered retirement savings plan rrsp rbc direct. Membercanadian investor protection fund, rbc global asset management inc. Interest rates are paid on the cash portion of investment and registered accounts. Has a group rrsp account with rbc direct investing. T1036 home buyers plan hbp request to withdraw funds.