Author Archives: BetCrooks

Financial Hot Water Tips

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Recently I was reading a really scary story: It was all about the huge costs if your water heater tank fails.

Some other Financial websites also have cooked up some hot water articles worth perusing.

Michael James on Money discovered he had a fountain in his house: Too bad the water was shooting out of the top of his water heater tank!

Big Cajun Man mentioned why his faulty water heater was actually a good thing in this Earth Day post.

Boomer and Echo saved on home insurance by upgrading items including their water heater.

Some RedFlagDeal members chat about tankless water heaters.

Sarah on Timeless Finance described how her tenants from the hot place cost her the big bucks by not telling anyone when “the rental water heater cracked open.”

Ellen Roseman tackles the perennial topic of abuses by sales staff pushing water heater sales door to door in two articles at the Star http://www.thestar.com/business/personal_finance/spending_saving/2013/04/12/water_heater_sales_at_the_door_set_for_clampdown_roseman.html and http://www.thestar.com/news/queenspark/2013/04/11/ontario_cracks_down_on_doortodoor_water_heater_sales.html .

Happy weekend! And may the only hot water you experience be the lovely warm stuff in the lake or pool in which you go swimming.

Which of the Big 5 Brokerages Offer a US Dollar Side, Journal, Ledger or Sub-Account for an RRSP?

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The Big 5 Canadian banks are BMO, CIBC, RBC, ScotiaBank, and TD. Each of these has an associated discount brokerage. Only some of these brokerages, however, allow you to keep US stocks in a US dollar part of your RRSP account. This is a recap of which ones have this option, which is variously called a US dollar side, journal, ledger or sub-account.

What Use is a US Dollar Side to an RRSP Self Directed Brokerage Account?

Recently I set up a US dollar sub-account in my BMO InvestorLine RRSP account. This lets me buy and sell stocks in US dollars and receive distributions, dividends and profits without paying any foreign currency conversion fees.

I knew I couldn’t do this for our CIBC Investor’s Edge RRSP. They don’t offer this option.

Then today I was reading an article by the Canadian Capitalist posted in a roundup by Michael James on Money. I was surprised to read that at TD Waterhouse you can’t just set up this kind of US ledger in your RRSP.

That led me to do some quick checking into this issue. Here’s what I found out:

Which Brokerages Have US Dollar RRSP Accounts or Sub-Accounts

Brokerage US Dollar Sub-Account Available?
BMO InvestorLine Yes
CIBC Investor’s Edge No
RBC Direct Investing Yes
ScotiaBank iTrade No
TD Waterhouse Direct Investing No but with ***

*** According to the Canadian Capitalist article TD Direct Investing does offer a sort-of compromise. It lets you buy and sell stocks in US dollars and keep the monies in US dollars between buys. It does not, however, let you receive distributions and dividends in US dollars.

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Join In

Do you use a self-directed brokerage for your RRSP? Can you keep all of your profits, distributions and dividends in US dollars till you’re ready to spend them? Please share your experiences with a comment.