TD Direct Investing (was Waterhouse) Service

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pmj
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Re: TD Direct Investing (was Waterhouse) Service

Post by pmj » 06 Jan 2017 12:23

We make an RRSP - TFSA transfer at TDDI every year. You can certainly select the price at any time in the evening, and probably up to market open the next day.
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Re: TD Direct Investing (was Waterhouse) Service

Post by Hammerer » 06 Jan 2017 18:10

I understand the opportunities are limited. I was mostly surprised I got to choose a price. I waited until after close because I wanted to be prepared and know exactly how many units to transfer to get as close to $5500 as possible, and I could do that with the fixed close price, but to my surprise, I could pick any intra-day price.

I suppose for those with a diversified cash portfolio, there could be more opportunities. It's usually going to be a tiny benefit, but I like to optimize everything.

Sadly, my VCN is close to its ACB... maybe even closer once I factor in any ROC.

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Re: TD Direct Investing (was Waterhouse) Service

Post by adrian2 » 06 Jan 2017 22:46

cardhu wrote:Hammerer is referring to a single-day jump in price … when doing a transfer-in-kind, you can select the transfer price from among the day’s trading range … so if a stock shoots up 10% in a day, as occasionally happens, you can transfer in, select the low for the day as the transfer price, and shield that 10% gain from tax … obviously, gains accrued prior to that day would not enjoy this sheltering.

Hammerer … the intentional triggering of some gains to shelter other gains, may or may not be worth it in the end … if the stock in question is already 70% ahead of your ACB, and you transfer in on a day that it leaps in price, the negative effect of the tax drag may outweigh the positive effect of the sheltering. There could be opportunities, as you say, but every situation would have to be evaluated on its own merits, and would have to be evaluated FAST, before the market closes. The best case scenario would be where the stock in question is trading only slightly above your ACB on the day that the market causes it to spike. You would also have to have TFSA capacity standing by, ready to be used in this manner. All in all, I think the opportunity for substantial benefit would be rare. But it does exist.
Even if you don't have TFSA capacity standing by, if you have a stock trading only slightly above your ACB on the day that the market causes it to spike by 10%, you could transfer it to your TFSA, then withdraw it from the TFSA before the end of the calendar month. You'll pay a 1% penalty for over-contributing for a month, but shelter 10% in capital gains.
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Re: TD Direct Investing (was Waterhouse) Service

Post by kcowan » 07 Jan 2017 09:36

Just to ensure I understand this strategy:
Stock is worth $100 and jumps to $110.
I transfer it in at $100. Then take it out at $110 the same month and pay $1.10
or I can wait a month and if it grows to $120 and draw it out and pay $2.40?
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Re: TD Direct Investing (was Waterhouse) Service

Post by Hammerer » 07 Jan 2017 14:39

I think the penalty would be based on the excess contribution, so just $1?

Per CRA's "RC243-SCH-A Schedule A Excess TFSA Amounts" here: http://www.cra-arc.gc.ca/E/pbg/tf/rc243 ... EADME.html
"Any income that is attributed to deliberate over-contributions will be subject to the tax on advantages.".

Negligence is a great excuse for not following the law.

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adrian2
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Re: TD Direct Investing (was Waterhouse) Service

Post by adrian2 » 07 Jan 2017 17:59

Hammerer wrote:I think the penalty would be based on the excess contribution, so just $1?
Yes.

Bonus:
a) if you take out $110, you've increased your TFSA room by $10, or
b) if you take out $100 (about 90% of the shares you bought), the remaining shares stay and grow in your TFSA "forever" with no penalty, even if on day #1 you had no room for them.
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Re: TD Direct Investing (was Waterhouse) Service

Post by cardhu » 09 Jan 2017 02:10

Hammerer wrote:Sadly, my VCN is close to its ACB... maybe even closer once I factor in any ROC.
As discussed, the ideal candidate for this move would be one that is close to its ACB ... just a hair above ACB would be perfect ... sadly, though, significant single-day moves almost never occur in ETFs ... they are typically the domain of individual stocks.
adrian2 wrote:Even if you don't have TFSA capacity standing by, if you have a stock trading only slightly above your ACB on the day that the market causes it to spike by 10%, you could transfer it to your TFSA, then withdraw it from the TFSA before the end of the calendar month. You'll pay a 1% penalty for over-contributing for a month, but shelter 10% in capital gains.
But if CRA deems it a deliberate move, the penalties (plural) would more than offset the gains, resulting in a net loss (see below).
kcowan wrote:Stock is worth $100 and jumps to $110.
I transfer it in at $100. Then take it out at $110 the same month and pay $1.10
or I can wait a month and if it grows to $120 and draw it out and pay $2.40?
Assuming you are working through adrian’s proposal, the 1% only applies to the overcontribution (as Hammerer pointed out) ... so $1.00 even ... but then if CRA determines that you are a smart guy who keeps good records, and you knew perfectly well that you didn’t have any TFSA contribution room, then you’d pay an additional tax of 100% of the advantage ... so an additional $10, for a total tax of $11.00 ... leaving you $99 net of tax.

Or you could wait another month and pay $12.00, leaving you with $98 net of tax.
Hammerer wrote:Negligence is a great excuse for not following the law.
In the case of an inadvertent overcontribution, the 1% per month penalty would usually more than offset the inadvertent benefit ... in other words, it’d usually be enough to produce a net loss ... the additional tax on advantages (which is separate from, and additional to, the 1% per month penalty) would ensure it results in a loss, in those cases where it was deemed intentional.

I suppose they figured that for the inadvertent cases, a net loss is sufficient penalty, and an even bigger net loss would be a case of hunting ants with an elephant gun.


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Re: TD Direct Investing (was Waterhouse) Service

Post by jeremy » 20 Jan 2017 11:49

Has anyone tried emailing TDDI (and received a response)? A few days ago, I sent a general inquiry to the email address they provided under 'contact us' (tddirectinvesting@td.com) and I haven't heard anything back, not even an automated reply. Why bother providing an email address if you aren't monitoring it?

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Re: TD Direct Investing (was Waterhouse) Service

Post by BRIAN5000 » 20 Jan 2017 12:24

jeremy wrote:Has anyone tried emailing TDDI (and received a response)? A few days ago, I sent a general inquiry to the email address they provided under 'contact us' (tddirectinvesting@td.com) and I haven't heard anything back, not even an automated reply. Why bother providing an email address if you aren't monitoring it?
No response to my email either.


Sent: Tue, 13 Dec 2016 16:37:33 -0700 (MST)
Subject: Attn: Client Complaint Resolution Team
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Re: TD Direct Investing (was Waterhouse) Service

Post by OnlyMyOpinion » 20 Jan 2017 12:54

My last email took 9 days to get a response.

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Re: TD Direct Investing (was Waterhouse) Service

Post by kcowan » 20 Jan 2017 13:08

OnlyMyOpinion wrote:My last email took 9 days to get a response.
Mine took 7 days and said to contact their 800 number for service. Who are they kidding?
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Re: TD Direct Investing (was Waterhouse) Service

Post by AltaRed » 20 Jan 2017 13:32

TD DI seems to have a disproportional number of complaints on this forum. Maybe vote with your feet?
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Re: TD Direct Investing (was Waterhouse) Service

Post by adrian2 » 20 Jan 2017 15:57

AltaRed wrote:TD DI seems to have a disproportional number of complaints on this forum. Maybe vote with your feet?
Maybe TDDI has the highest percentage of users on this forum, and maybe they have a good overall reason to stay put? :P
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Re: TD Direct Investing (was Waterhouse) Service

Post by AltaRed » 20 Jan 2017 16:25

True, there may be a disproportionate number of users. Still doesn't seem to make sense to stand in the middle of 401 and take that kind of abuse. :wink: Though users have issues with pretty much everyone else too
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Re: TD Direct Investing (was Waterhouse) Service

Post by kcowan » 20 Jan 2017 16:49

We get the job done but are they really worse than other banks? I used to be intensely loyal to TD but no more. So I am open to offers. I do not see any reward for longevity. But I do not see any compelling offers either.
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Re: TD Direct Investing (was Waterhouse) Service

Post by Koogie » 20 Jan 2017 17:01

AltaRed wrote:Still doesn't seem to make sense to stand in the middle of 401 and take that kind of abuse.
That sounds more like Tangerine clients... :twisted:
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Re: TD Direct Investing (was Waterhouse) Service

Post by Shakespeare » 20 Jan 2017 17:04

I'm quite happy with RBCDI. I do one or two modest trades a month.
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Re: TD Direct Investing (was Waterhouse) Service

Post by OnlyMyOpinion » 20 Jan 2017 19:29

OnlyMyOpinion wrote:
jasdlc wrote:Happy Holidays All. I was just reviewing my Dec distributions in my TDDI accounts and noticed that they have added the MAW104 ones twice in both my RRIF and my TFSA accounts. If anyone else is holding MAW104 I would appreciate it if you would check to see if the mistake was made on your accounts as well. By adding the units twice it messes up my holding amounts/$ totals etc. Thanks.
I see something similar in TDDI RRSP. On Dec. 22 the acc had one entry, a DRIP of $3145.46 (123.095 units) showing a trade date of Dec. 21 for settlement Dec. 20. Today I see a second entry, another DRIP of $3145.46 (122.055 units) showing a trade date of Dec. 23 for settlement Dec. 20. Both tranches have been added to the BV, MV and total # units in the account. I'm not sure how this info comes to TDDI from Mawer or why they would book them as two entries on different days?
I'll keep an eye on the account for future adjustments though because I calc the sum of the two distributions to be a payout of 2.24% on prior BV - about twice the 1.05% TTM Yield that Morningstar reports, suggesting one of these entries may get reversed?
As suspected, TDDI now shows an entry CXLDRI of $3145.46 (-123.095 units) showing a trade date of Jan. 12 for settlement Dec. 20. This reverses the Dec. 22 entry reported above. The units distributed now represent 1.1% of prior BV, consistant with the 1.09% TTM reported by Morningstar.

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Re: TD Direct Investing (was Waterhouse) Service

Post by jeremy » 23 Jan 2017 11:45

Thank you for the feedback about email response times. I guess I will wait a few more days, as it's not too urgent.

I see that BMOIL is currently offering up to $750 to switch to them. Hmmmmm...

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Re: TD Direct Investing (was Waterhouse) Service

Post by pmj » 23 Jan 2017 12:24

BMOIL has no telephone service after 8 pm :shock:.
(Minor niggle) BMOIL, although having a decent range of C$ "D" funds, has no US$ "D" funds.
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Re: TD Direct Investing (was Waterhouse) Service

Post by BRIAN5000 » 24 Jan 2017 19:02

The TDDI Rep I had yesterday had passed all his exams but needed a 9 day wait period to be a legit trader. Today the wait to get a live person was 27 minutes and that Rep said they'd pulled people from the insurance side to answer phones can't remember if he said 20 or 40.
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Re: TD Direct Investing (was Waterhouse) Service

Post by OnlyMyOpinion » 26 Jan 2017 22:08

TDDI notice popped up yesterday indicating that BCE owners who DRIP would see the DRIP in their accounts but not yet the dividend payment. They have since gotten the dividend payment recorded. Interesting to see a temporary negative cash balance. Reminded me that I haven't run on margin for decades.

Do folks at other brokerages get these 'temporary' accounting issues from time to time or is it just TDDI?

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Re: TD Direct Investing (was Waterhouse) Service

Post by OnlyMyOpinion » 07 Feb 2017 13:21

I'd noticed this earlier but thought I'd post now anyway:

The 'new & improved' TDDI interface requires you (or me at least) - when checking off and downloading multiple pdf statements or confirmations - to check the statements from top to bottom in chronological order. If you select them randomly or out of order the pdf file you download will not be in chronological order. This was not the case with the old user interface, you could check them off in any order and it had the intelligence to order the pdf file chronologically. :evil:

It does still retain the old limit of 10 documents per pdf however :evil:, except for monthly statements which as before and to someone's small credit, allows you to choose 12 documents, thus getting a year's worth of statements in one pdf file. :)

I use a firefox browser.

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Re: TD Direct Investing (was Waterhouse) Service

Post by willowberry » 09 Feb 2017 12:27

I use a free pdf merger to merge the pdf files into one for each year. It too requires you to put the pdfs in the order you want, but the interface provides an easy way to do so. There are others I tried, but settled on this one:
http://www.pdfmate.com/free-pdf-merger.html

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