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Email this8:51 pm
February 22, 2013
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kanaka said
GS said
kanaka said
[snip]
no declaring dividends or capital gains.
Or tracking Return of Capital
Ok GS.....what is Return of Capital and why do you have to track it? I am planning on phasing out my RRSP investments over the next 10 years and moving to stocks or etfs that are dividend oriented.
Thanks
My definition of ROC is "giving you your own money back". To ensure your monthly payout is equalized some funds will dip into the capital of the fund and return it to you. Box 42 of your T3 records it and it affects your Adjusted Cost Base (ACB) which you need when you finally sell an equity investment.
I did a search for "Box 42 Return of Capital and found this article from 2007 by Jamie Golombek. He is good and so I suspect the article, which I have not yet read, is also good, likely much better than my words.
An excellent site to help you track your ROC is here.
Jamie may or may not say it, but my feeling is that some funds abuse ROC and some treat it with respect. XBB treats it with respect. I have 175 shares of XBB in an investment account. They were purchased in November of 2010 and the total ROC to January 2013 is $6.24, on an adjusted cost base (ACB) of about $5300.00. I previously owned RBF1012 (RBC's Manged Payout Solution - although the name has likely changed) and to maintain the "managed payout" during the 2007 - 2011 time frame "most" of the payout was ROC.
Greg
5:53 pm
October 5, 2009
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Peter said
Editorial note: I changed Stan's topic title to be less harsh but hopefully retaining the description of his experience.
Thank you. I wanted to do the same but didn't know how to do it. The tile was written in a spirit of total exasperation after having spent the last three days and the last half hour trying to deal with Peoples!!! 
6:51 pm
October 5, 2009
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jeremywong said
Stan:
Peoples pays 3% on TFSA. The rate hasn't dropped.
I have never figured out how to withdraw from Peoples TFSA, which is why I never opened one, despite having a savings account there. Have you finally made your withdrawal?
Jeremy,
I just got my Peoples statemtment which confirms they have transferred our remaining savings into our main TD account, so I will have to wait until the next time I visit TD to make sure the TFSA has been transferred as well. I didn't request a TFSA transfer; merely transfer all of the TFSA funds to our TD account. 
This reminds me of an episode with TD that demonstrated the difference between a professional institution, and those like Peoples:
One day, my wife and I were engaged in a rather complex business transaction which required a lot of papers to be signed. So to speed things up, I handed my cheque book over to my wife to fill out the cheque while I took care of the rest of the paperwork.
So . . . at 8 pm, that night, I got a call from TD, advising me that they had a cheque drawn on my account that didn't have an authorized signature. (OOPs I my wife had signed a cheque on my account! No big deal. Just an accounting thing which we have now changed to include reciprocal signatures)
So I asked them:
Me: Like . . . for $50,000.00?
TD: Yep!
Me: Soooooorrrry!!! I'll be in first thing in the morning to get it all straightened out!
TD: No need to come in! As long as you know about it, we'll just process it on through. 
That's the kind of bank I like to deal with!!
For sure we've made a few mistakes over the years, but they have never treated us like a kindergarten teacher trying to teach a little kid a lesson!
Not that were the only ones to ever make a mistake! Like the time TD entered a transaction, placing the decimal point $50,000 in our favour! 
My son, who is in banking, told me that they would NEVER discover the mistake. So . . . I let the ruse go for four months, with nary a word from TD.
I finally went into the bank and told them that I thought they made a mistake on one of our bank account enteries, and would they check it out?? They agreed to check it out, but only with the proviso that I would have to pay them $28 per hour for the cost of their search! So . . . I told them:
"No. It's okay. It's just that I seem have an extra $50,000 in my account, which I never deposited. 
If it's okay with you, it's okay with me! Thank you! 
" And walked away.
That interaction, for some mysterious reason, motivated them to make adjustments to my bank account after I left.
8:19 pm
October 5, 2009
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jeremywong said
I have never figured out how to withdraw from Peoples TFSA, which is why I never opened one, despite having a savings account there. Have you finally made your withdrawal?
Yes!! Jeremy,
After three days of stonewalling by Peoples, both the savings and TFSA finally went through on the fourth day! And all this hassle for a mere residual $13,000 remaining in accounts that would no longer be used because Peoples is no longer offer chequing priviledges which would only be used for $$$ transfers, instead of wasting three days enduring a run-around, attempting to transfer such a miniscule sum!
I have never, and will never deal with any financial institution that doesn't provide the means for transferring $$$ by merely taking a minute to write a cheque in preference to days of hassle! When we initially placed funds in Peoples, we were provided with cheques; but chequing privileges have now been abandoned by Peoples, leading to closing of our accounts.
1:10 pm
December 23, 2011
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Stan said
jeremywong said
I have never figured out how to withdraw from Peoples TFSA, which is why I never opened one, despite having a savings account there. Have you finally made your withdrawal?Yes!! Jeremy,
After three days of stonewalling by Peoples, both the savings and TFSA finally went through on the fourth day! And all this hassle for a mere residual $13,000 remaining in accounts that would no longer be used because Peoples is no longer offer chequing priviledges which would only be used for $$$ transfers, instead of wasting three days enduring a run-around, attempting to transfer such a miniscule sum!
I have never, and will never deal with any financial institution that doesn't provide the means for transferring $$$ by merely taking a minute to write a cheque in preference to days of hassle! When we initially placed funds in Peoples, we were provided with cheques; but chequing privileges have now been abandoned by Peoples, leading to closing of our accounts.
Stan I have to agree with your decision. Although I don't deal with PT nor would I ever plan to. If a financial institution does not meet your needs or makes mistakes.....DUMP THEM!!!
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