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Monday, February 11, 2013

Welcome in my RRSP portfolio Toronto-Dominion Bank (TD)

Since the Dividend Girl is a TD princess (yeah yeah, you read correctly), I decided to invest in the best Canadian bank! I had over 6k available in cash inside my RRSP broker account. so today, before hitting back to work on this beautiful rainy Monday, I decided to place an investment for my RRSP.

As a bank, TD Bank was very good to me. TD was the first bank to provide me a line a credit. That was back somewhere in 2005. I also got my RRSP loan with TD and also a credit card which provides me a low interest rate every 6 months as long as I do the ping-pong thing (credit card balance transfer). I never missed a payment on everything I hold with TD. You treat me well, I will treat you well too. Its just too bad that RBC Royal Bank didn't have the same intelligence.

Fact is, TD bank doesn't care that much even your from the middle class. What they want deeply and very madly is your business. They'll give you everything you want, credit card, RRSP loan, credit line. If I got all those stuff, you can sure too! Its not because I am a TD princess that I am necessarily an exceptional customer with a A+++ credit score. TD is a sexy bank and they want YOU to be their customer. It's really that simple.

Since I made my move below the $85, I think I catch my TD stocks at a good price, something like in the $83. I also have a GIC with TD that had expired. Its been on since February 2008. And guess what, it has expired in February 2013 of this year and I didn't earn one single penny from the investment!!!!! This is unfortunately very true.

Lesson learn: better to invest in the stocks of a bank rather its GIC. The stocks of a bank are not 100% guarantee like a GIC, but at least, you are almost 100% guarantee to get an interesting return...

I have a couple of things to take care of right now and my RRSP is one of them. I am still not done with it. I still have the $500 coming from the GIC to invest and also a few thousands. I would very much like to get in the Saskatchewan Pension Plan. I wrote about this one a very long time ago. Since I am not in RRSP at this time, I never made my move. I am just very curious if its possible to invest in the Saskatchewan Pension Plan through a broker like TD Waterhouse.

Other than that, I don't really have much idea for my RRSP. I am even thinking of getting in one or two of their mutual funds, low risk ones.

I am already taking enough risk with my non-registered portfolio. Don't you think so?

Other plan: I am looking forward to transfer a 1k in my TFSA (yeah yeah, you read correctly) and invest in RioCan Real Estate Investment Trust (REI.UN). Yesterday, I was looking at the list of real estate stuff that belong to REI.UN. And it was just soooo funny when I saw that they 100% own a small shopping mall, a mall where I used to go all the time with my friends when I was a teenager. We must had spent hundred of hours at that place! In result of my finding, I NEED to get RioCan Real Estate Investment Trust (REI.UN) in my portfolio. Its just a mater of dring dringggg to TD and say; transfer a 1k in my TFSA please! Or can I do that myself online? It doesn't seem like I can.

i haven't forgot about the mountain lion hero man. Its going to be the subject of my next post.


Anonymous said...

Of course you can make those transfer by yourself online

unbalanced said...

I don't understand how you held a 5 year GIC and didn't make a cent. Please explain.

Anonymous said...

even though you did not earn a return on your market linked gic, it at least did the work by guaranteeing your principal. if you were to invest that same money in something else, you might be still losing some money. obviously you can say this now, but back then did you really had a crystal ball? did you predict the crash and the bottom of the markets??? just think about it...

banks stocks are relatively safer, but no guarantee. the banks had a huge run up since the crash, so NOW AGAIN, you are buying at the top of the markets, this is like a vicious circle... no one can predict the future. good luck, but in my opinion the banks will struggle for the next few years, but who knows... housing slowing down, economy slowing down, us debt ceiling, Europe debt issues, China market cooling down...

Anonymous said...

Wow…its taken you a LONG TIME to reach the conclusion about TD Bank & Riocan. One touter is encouraging US investors to move to Canadian Banks as the “Swiss Bank Accounts” of the north….LOL Buy a bank, any bank AND DRIP it. Riocan can be used as a stand-in for the entire Cdn commercial reit sector (ETF). In both instances you’ve also missed a lot of upside by not investing earlier, you’re now buying at or near the top, hoping there’s more upside. What’s in your favor is speculation of increased distributions for RIOCAN, increased DIVI’s for TD. What’s against your favor: RIOCAN expectation of slower growth, and maybe divesting of properties, or agreements; TD/RIOCAN has the market already worked the distributions into the value? As for Saskatchewan Pension Plan…No, you have to invest directly with them. They don’t broker. They will take preplanned direct account payments. They look after the investment, you have no say, sort of like a fund. They provide an annuity set up at the end. However, it’s severely restricted how much you can invest p.a. Any young person who wants a no- brainer way to set up small savings for long time growth for their retirement & is jumping from job to job/company to company/self employed, or is on contract may want to consider this. The advantage is that it is run by the Sask gov’t, open to any Cdn resident, & has low overhead (unlike you’re favorite mutual fund). Anony-spagetinni

Sunny said...

My GIC didn't generate anything because I bought it in 2008 and from 2008 to today, market didn't fluctuate. My GIC was a product link to the market. This is not the first time I am cashing in GIC with no profit.

The way my account is set up online, I couldn't transfer fund to my TFSA. And I prefer it that way, to prevent any transfer fund mistakes.

I also asked to block transfer fund to my RRSP account - at which the broker answer it was the first time ever he received such request... Do I really need to know that?

You guess it, I spoke to a broker based in Montreal. I had to asked him his name twice. I like it when hot male broker has sexy male voice, but I don't like them arrogant and fresh.

I had invested in TD bank before. Jumping in TD now, price below $85 per share is all good to me. There will always be economical problems, I invest in the present time. I am not a sophisticate investor.

I am pleased with my future move in Rico too because its a nice way to diversify my portfolio, this time inside my TFSA.

Anonymous said...

Buying stock at top is not a good move. You always buy stop at higher price. If you calculate your total return, it will be zero or less as your GIC.

Anonymous said...

Caveat: security (index) linked investments (GIC's) isn't the wonderful investment option the banks like to make them out to be. Yes, your principle is backed. Yes, you participate in market upside. But they don't offer flexibility to get out when you need to or want to. IMHO buy the index, or buy the GIC. There's been a lot written about this. Anony-cannoli

Ruth said...

just cashed my last 5 year GIC with TD and made nearly 5% ,it is down to a little over 2% now. i saw where TD was at $67 a share , a little over a year ago..we still have the european crisis. the mess in the states to fix and a correction in the market for sure. just thoughts..i am still holding my GIC's to invest .


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