Investing in mutual funds @ TD bank

[littleguyzz]

TD is the most heavil

Are you a financial advisor or just play one on TV?

I am a successful investor with many assets and achieved this by taking a long term approach with stocks such as TD, RBC, AMAZON ,Walmart Apple etc.
Banks always make money on the spread . Thus they are always profitable.

In good and bad shoppers flock to Walmart and market leaders such as Apple, Amazon etc. are always profitable and appreciate in value.

I do have an MBA and majored in Finance but anyone that buys good dividend paying stocks that appreciate can enjoy the same success. Its not complicated but a strategy over a long time period.

 

[TomFord1980]

I am a successful investor with many assets and achieved this by taking a long term approach with stocks such as TD, RBC, AMAZON ,Walmart Apple etc.
Banks always make money on the spread . Thus they are always profitable.

In good and bad shoppers flock to Walmart and market leaders such as Apple, Amazon etc. are always profitable and appreciate in value.

I do have an MBA and majored in Finance but anyone that buys good dividend paying stocks that appreciate can enjoy the same success. Its not complicated but a strategy over a long time period.

I love this response we need more of this.

 

[TomFord1980]

I am a successful investor with many assets and achieved this by taking a long term approach with stocks such as TD, RBC, AMAZON ,Walmart Apple etc.
Banks always make money on the spread . Thus they are always profitable.

In good and bad shoppers flock to Walmart and market leaders such as Apple, Amazon etc. are always profitable and appreciate in value.

I do have an MBA and majored in Finance but anyone that buys good dividend paying stocks that appreciate can enjoy the same success. Its not complicated but a strategy over a long time period.

I have a good pension from a previous position and am good friends with the head of Sun Life Global. Both are staying away from TD.

The rest are rock solid sir, for me anyway.

 

[glamphotographer]

I have an ETF from TD Bank, the US equity fund, with lower fees than mutual funds.

 

[craig_hoxton]

Please consider an index-tracking ETF following TSX Composite/S&P 500 or if you want income on your ETFs, a covered call or Yield shares ETF (Purpose does a few of these).

Of course, this is general info as I am not licensed to provide investment advice and have no idea of your investment goals, timelines or risk tolerance. Lots of info available online/YouTube.

 

[Ponderling]

TD E series iused to be not a bad way for a small investor to start.

Wealthsimple with their low buy in costs on ETF's has pulled ahead of e-series in that respect.

I started investing with mutual funds about 35 years ago. There was nothing else for the small investor.
But fees were the killer in the long run.

I was early to ETF's when they started.
Anyone remember TIPS - Toronto Index Participation Shares?

Mutual fund fees have declined in the face of pressure from ETF sales, but there are still a lot of mutual funds sold by bank advisor types and their ilk.

 

[jeff2]

TD E series iused to be not a bad way for a small investor to start.

Wealthsimple with their low buy in costs on ETF's has pulled ahead of e-series in that respect.

I started investing with mutual funds about 35 years ago. There was nothing else for the small investor.
But fees were the killer in the long run.

I was early to ETF's when they started.
Anyone remember TIPS - Toronto Index Participation Shares?

Mutual fund fees have declined in the face of pressure from ETF sales, but there are still a lot of mutual funds sold by bank advisor types and their ilk.

I bought TIPS for my mom. Of course, the bank did not really like that because of the lack of fees. They were good until Nortel crashed.

 

[speakercontrols]

I have great experience with the TD e-series indexes. If you already have an account with TD, it's easy to purchase them at no cost similar to Wealthsimple. Offhand, I don't know how the performance compares to similar indexes but, hey, it's an index.

 

[speakercontrols]

They were good until Nortel crashed.

That pretty much describes everything for investors "of a certain age"

 

[Liam011]

I have great experience with the TD e-series indexes. If you already have an account with TD, it's easy to purchase them at no cost similar to Wealthsimple. Offhand, I don't know how the performance compares to similar indexes but, hey, it's an index.

Their MER, while low, is still a little higher than equivalent ETFs. But, it's fractional. I started off years ago in e-series (back when TDDI made it a pain to buy them).

For beginners either is good. The point is just to get into the market, broadly diversify with an index fund and let time in the market do it's magic for you while you live your life.

 

[speakercontrols]

Their MER, while low, is still a little higher than equivalent ETFs. But, it's fractional. I started off years ago in e-series (back when TDDI made it a pain to buy them).

For beginners either is good. The point is just to get into the market, broadly diversify with an index fund and let time in the market do it's magic for you while you live your life.

This is true. One has to decide if that 0.0x% is worth the convenience to invest and bank at the same place. Going with WealthSimple does have some hassles when moving $

 

[Zoot Allures]

Here"s what you do.

Open a TD Web Broker trading account at no cost.

Buy TD Bank stock as the trading charge is only $9.99 no matter the volume purchased. No fees like you have with mutual funds.

TD stock pays a good dividend , appreciates in value and occasionally splits.

If our Canadian banks go down the whole world is doomed as our banks are the safest investment partially due to government rules for liquidity.

Personally if you buy bank stock I would also buy Royal Bank stock as its one of the strongest banks in the world.

I disagree with dividends , but, if you must buy bank stocks for dividends buy index fund of bank stocks

 

[jeff2]

I disagree with dividends , but, if you must buy bank stocks for dividends buy index fund of bank stocks

I am not crazy about dividends either but in Canada we have the dividend tax credit.
Low income earners don't really pay any tax on dividends from Canadian companies.
Of course, this is not good if you end up with a bunch of crappy Canadian companies.

You can earn $50K in tax-free dividends, but there's a catch: You can't have a job

Jonathan Chevreau: While early retirement may be a pipe dream for most, some do pull it off and live almost tax-free on dividend income alone. Here's how

financialpost.com

 

[Zoot Allures]

I am not crazy about dividends either but in Canada we have the dividend tax credit.
Low income earners don't really pay any tax on dividends from Canadian companies.
Of course, this is not good if you end up with a bunch of crappy Canadian companies.

You can earn $50K in tax-free dividends, but there's a catch: You can't have a job

Jonathan Chevreau: While early retirement may be a pipe dream for most, some do pull it off and live almost tax-free on dividend income alone. Here's how

financialpost.com

ARticle says in OMtario $71,034 of dividends is tax free if there is no other income

I have 65 k in pension so does that mean I get 71 - 65 is 9 k tax free?

In Ontario, tax is 25 per cent for those making more than $90,000 a year on dividends

What is the tax rate between 90 k and 71k?

Dividends are grossed up to account for taxes already paid by company, meaning you get more tax deductions

 

[Liam011]

I really like Ben Felix and he is a fantastic financial commentator. You can take his advice 100% of the time and not go wrong.

I will disagree about dividends though. Not from a mathematical or taxation point of view but from an investor behaviour point of view. It has been conclusively proven that the largest stumbling block to success for DIY investors is human psychology. Panic in market downturns specifically. So, if dividends give an investor the warm and fuzzies and let them avoid selling in a downturn because of the constant dribble of income, then they are worth their weight in gold. I know during two downturns they have helped me stay the course.

disclosure: the bulk of my portfolio is in broad based, whole market funds. I still own some divvy paying stocks though and will likely never sell them.

 

[Zoot Allures]

I really like Ben Felix and he is a fantastic financial commentator. You can take his advice 100% of the time and not go wrong.

I will disagree about dividends though. Not from a mathematical or taxation point of view but from an investor behaviour point of view. It has been conclusively proven that the largest stumbling block to success for DIY investors is human psychology. Panic in market downturns specifically. So, if dividends give an investor the warm and fuzzies and let them avoid selling in a downturn because of the constant dribble of income, then they are worth their weight in gold. I know during two downturns they have helped me stay the course.

disclosure: the bulk of my portfolio is in broad based, whole market funds. I still own some divvy paying stocks though and will likely never sell them.

Ben Felix agrees with you. Divdend buying is a disciplined approach of saving that he encourages

but he feels that discipline should go to index funds

 

[NotADcotor]

Go the TD branch and open a brokerage account which allows you to buy stocks. Buy VOO (Vanguard S&P Index fund), and nothing else, since you are new. It should return about 10% a year on average. There will be bad runs where it's down, but don't sell. Keep buying more and more shares every time you save some money. The compounded growth should leave you with a nice nest egg.

Keep in mind over a few years that 10% could easily be double, or you can lose 80%. It isn't bonds we are talking about.

Worth it yes, but that average can be rather variable.

 

[NotADcotor]

TD is the most heavil

Are you a financial advisor or just play one on TV?

His advice isn't the worst, Not what I do exactly but still.

Maybe he stayed at a best western express.

 

[NotADcotor]

There is this theory to buy the laggards in the cartel and they eventually catch up. Has not been working with BNS. Not sure what the scorecard is with CIBC.

The Globe and Mail has been putting out articles on this for a while, or they used to. Had a pretty good track record and sound theory behind it. But nothing is perfect.
Not that BNS has been doing horrible though. I usually spread it out if there are multiple laggards and I use last year's performance, PE Ratio and Dividend yield as metrics.

Another point they make is that not only are banks heavily regulated but they have their fingers in just about eveyrthing they they kinda sorta serve as an index fund... but with moe dividends which is great for someone like me who isn't accumulating a nest egg anymore.

 

[Liam011]

Ben Felix agrees with you.

That's why he is worth listening to... haha

Divdend buying is a disciplined approach of saving that he encourages
but he feels that discipline should go to index funds

He's not wrong but I have learned over decades of investing not to put all my eggs in one basket. ETFs (the most common approach to index investing) have some small issues that can come up at the worst of times. I like a bit of a mix and match approach. Plus, embedded cap gains will stop me from ever divesting the divvy stocks.