Where to park USD cash?

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AltaRed
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Re: Where to park USD cash?

Post by AltaRed »

Peculiar_Investor wrote: 10 Jan 2018 08:36 Thanks to the detective work here I have made some additions to our wiki, Fund-based investment savings accounts.
By the way, for Scotia DYN400 and DYN500, the link should now be to ADS Canadian bank.... https://ads.scotiabank.com/ADS/Download/236/en
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Re: Where to park USD cash?

Post by hamor »

why not add TDB166 to the wiki?
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Re: Where to park USD cash?

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hamor wrote: 10 Jan 2018 10:39 why not add TDB166 to the wiki?
Because it is a Money Market mutual fund rather than an ISA/HISA. MMFs are not the same as ISA/HISAs.

Added: There are literally hundreds of MMFs. Every Asset Management firm has them and thus couldn't be all covered in a wiki
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DenisD
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Re: Where to park USD cash?

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I think the CIBC funds in that list are money market funds, not ISAs.
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Re: Where to park USD cash?

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DenisD wrote: 10 Jan 2018 11:46 I think the CIBC funds in that list are money market funds, not ISAs.
:oops: You are correct and the wiki has been correct too.
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Re: Where to park USD cash?

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Spoke with a CIBC mutual fund rep this morning (800-465-3863) regarding CIB483 and CIB583. Before making a purchase I wanting to be certain that there would be no early redemption fee involved. I was told that inside 30 days the fund manager [b]may[/b] charge a 2% early redemption fee. He clearly explained that a fee isn't always charged but that it [b]could[/b] happen.
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Re: Where to park USD cash?

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Retired Guy wrote: 26 Jan 2018 10:53 Spoke with a CIBC mutual fund rep this morning (800-465-3863) regarding CIB483 and CIB583. Before making a purchase I wanting to be certain that there would be no early redemption fee involved. I was told that inside 30 days the fund manager may charge a 2% early redemption fee. He clearly explained that a fee isn't always charged but that it could happen.
Yesterday my TDDI US$ RRSP was credited with a US$48 dividend.
I put in 2 orders at the same time:
- sell US$952 worth of CIB483
- buy US$1,000 worth of CIB483, to mop up the dividend.

The orders were filled and no fee was charged.
BTW, current yield is 1.56%
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Re: Where to park USD cash?

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Adrian 2,

The amount I discussed with the CIBC rep for a possible purchase of CIB583 was over US$200,000. Perhaps they have a need to occasionally charge an "early redemption fee" if the buy/sell period is too short to easily raise the cash. I don't know, but I would suggest that anyone contemplating a quick buy/sell of a large amount of CIB583 should inquire in order to avoid a possible surprise.
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Re: Where to park USD cash?

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Account managers have some obligation to not disadvantage existing account holders to their detriment. I would object to someone trying to place $200k for a mere 30 days, perhaps even 90 days without penalties.
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Re: Where to park USD cash?

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Very important to point out that USD deposits are not covered under CDIC deposit insurance:

http://www.cdic.ca/en/about-di/what-we- ... bUEALw_wcB
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Re: Where to park USD cash?

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Wing wrote: 01 Dec 2017 12:58 Anyone has other alternatives on where to park USD cash?
For a substantial US dollar amount where lack of deposit insurance would be a concern to me ($10k+USD), I would either park the money in:

https://personal.vanguard.com/us/funds/ ... true#tab=1

or purchase a US Treasury Bill or Treasury Note from the fixed income desk at my investment bank (I invest using RBC DI).
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Re: Where to park USD cash?

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The latter of course are US domiciled products that probably count towards the $100k CAD threshold for the T1135.
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Re: Where to park USD cash?

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So I bank with td and have tddi, how to buy TDB8150 AND TDB8152? Do I have to go into the branch or can do it online? I was searching for TDB8150/2 in TDDI, but cannot find anything. Thanks!
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Re: Where to park USD cash?

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johnsmith1 wrote: 28 Jan 2018 13:08 So I bank with td and have tddi, how to buy TDB8150 AND TDB8152? Do I have to go into the branch or can do it online? I was searching for TDB8150/2 in TDDI, but cannot find anything. Thanks!
In WebBroker, they are purchased as Mutual Funds. So go to Trading->Mutual funds.
TD DI - buying TD8152.JPG
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Re: Where to park USD cash?

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Thank you Peculiar investor! TD's small biz manager asked me to come into branch several times over the years, pushing all kinds of things and they looked at my balances every time and they never mentioned this.
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Re: Where to park USD cash?

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If buying MMF, the only issue is the triggering of capital gains/losses when buying/selling. Worse, if you do that frequent enough, that will be considered income and not capital gains.
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Re: Where to park USD cash?

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what's the difference between tdb8152 and tdb8153 (F series)?
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Re: Where to park USD cash?

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Wing wrote: 29 Jan 2018 12:35 If buying MMF, the only issue is the triggering of capital gains/losses when buying/selling. Worse, if you do that frequent enough, that will be considered income and not capital gains.
I would never worry about 'frequent trading' of a USD MMF potentially being income by the CRA in the context of one's overall portfolio. It is just way too far down the list of possibilities. But it is true that cap gains or losses are possible due to changes in forex. ACB records must be kept. Same is not true when moving USD in or out of HISA accounts since these are considered deposit accounts.
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Re: Where to park USD cash?

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johnsmith1 wrote: 29 Jan 2018 12:52 what's the difference between tdb8152 and tdb8153 (F series)?
MER or trailer fee. F series cannot be bought by retail users.......only through Advisors. Another aspect of our rotten financial system.
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Re: Where to park USD cash?

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Okay, we can only diy tdb8150/8152 then. I just bought some tdb8150 so it will show up in my account tomorrow?

AltaRed wrote: 29 Jan 2018 12:56
johnsmith1 wrote: 29 Jan 2018 12:52 what's the difference between tdb8152 and tdb8153 (F series)?
MER or trailer fee. F series cannot be bought by retail users.......only through Advisors. Another aspect of our rotten financial system.
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Re: Where to park USD cash?

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It will settle on Tuesday (T+1). It should show by COB Tuesday in your account, or latest Wednesday morning. Some brokerages will show an acquisition right away. Others wait until after settlement.
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Re: Where to park USD cash?

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AltaRed wrote: 29 Jan 2018 12:54
Wing wrote: 29 Jan 2018 12:35 If buying MMF, the only issue is the triggering of capital gains/losses when buying/selling. Worse, if you do that frequent enough, that will be considered income and not capital gains.
I would never worry about 'frequent trading' of a USD MMF potentially being income by the CRA in the context of one's overall portfolio. It is just way too far down the list of possibilities. But it is true that cap gains or losses are possible due to changes in forex. ACB records must be kept. Same is not true when moving USD in or out of HISA accounts since these are considered deposit accounts.
I read something online just recently that this guy only made 50 transactions a year, holding period about 30 days on average, was being judged (a tax court cast) his reported capital gains was indeed income. His total capital gains were 550k, on 2.5million capital. This made me think size is eye-catching, once a taxpayer attracted CRA attention, they are trying every bit of the effort to charge you more tax. Since their so-called guidelines (the last tax bulletin with regard to trading securities was not updated for more than 30 years) are not clear-cut, it's really up to CRA's interpretation on grey areas. As taxpayers, we should be super careful as what everyone has been doing and never got caught doesn't always mean it's okay with CRA. With stock markets making record highs these couple of years, I'm sure CRA will want a bigger share!
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Re: Where to park USD cash?

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Think about that for a moment. That guy was clearly in currency trading if he made over $500k on $2.5 million... A 20+% gain! Don't you think that is orders of magnitude different than a retail investor accidentally making a few thousand in his brokerage account on perhaps $100k of surplus cash?

Added: it is often a matter of intent.
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Re: Where to park USD cash?

Post by IdOp »

johnsmith1 wrote: 29 Jan 2018 13:01I just bought some tdb8150 so it will show up in my account tomorrow?
At TDDI a TDB8150 trade will typically show up in the Orders as filled, and on the Activity page, sometime in the morning of the day after the trade. That would be tomorrow morning if you bought before 3pm ET today. It will probably take another day to be reflected in your holdings. (Not sure if they have real-time holdings.)
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Re: Where to park USD cash?

Post by Koogie »

To be clear for new users, TDB8150 is a C$ product. 8152 is the U$ product.

(Since the thread is about USD cash)
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