When transferring funds from one institution to another, there are three different options to choose from:
- Transfer as cash (Recommended): Your institution will sell your holdings and move the money to us, but keep in mind you may be charged DSC or trading fees. There are no tax implications for transferring non-taxable accounts (like your RRSP, TFSA, or RESP).
- Transfer holdings as is: We move your holdings to us as they are today. Once we receive them, we sell everything (with the exception of DSC or LL holdings) and reinvest them in a timely manner. If you prefer to transfer with other instructions, book a call with our Portfolio Managers after submitting your transfer. There are no tax implications for transferring non-taxable accounts (like your RRSP, TFSA, or RESP).
- Transfer some of the cash: You can partially transfer any cash amount that is already sitting your account to us. If your account is invested, you will need to liquidate your holdings with your other institution before transferring. There are no tax implications for transferring non-taxable accounts (like your RRSP or TFSA).Now you know what they are. But which one should you choose?
Most of the time, we recommend transferring “as cash". But there are a few circumstances where it's better (read: cheaper) to transfer your funds “in kind.” One is if your relinquishing institution charges for trades, meaning there will be a fee associated with converting your portfolio into cash. The other is if you own mutual funds that have DSC (Deferred Sales Charge) or LL (Low Load Charge) next to their name, you'll need to make sure you don't get penalized for selling the mutual funds before their maturity date.
We know this stuff is a little complicated. If you have questions about transferring funds (or anything else) email email@example.com or call 1 (855) 510-8948 and we'd be glad to help!