RRSPs

[rkg1051a]

I am in a similar boat. Has anyone found a broker who can handle RRSP so that the funds can be invested differently (US$ denominated) ?
Thanks

[nelsona]

Not sure what you mean by US$ denominated.. If you buy US-traded securities in your RRSP, then you have US denominated investments. TDW does this.

[Arteeh]

I worked for an MFDA firm for about six months after moving to Ottawa and getting my licenses. I inherited several clients who resided in the states.

During this time, I called several mutual fund companies such as MacKenzie and Franklin Templeton. In all cases, the companies said that as long as my clients had registered funds, they would allow me to sell their funds to U.S.-based clients. I understand there are a couple states, that prohibit this.

In all cases, non-registered money was off limits.

If you don't get satisfaction from your advisor/broker, call the mutual fund companies directly. Then, ask your broker why the mutual fund company says they can deal with you, but his company says they can't. Sometimes, brokers need to push their compliance department to look into the details of a situation a little harder and not have a knee jerk reaction.

A lot of it is asking the right questions and pushing a little harder.

[nelsona]

I have found that it is ALWAYS the brokerage that needs pushing. most simply made the decision back in 1999-2001 that US client RRSPs were off limits, and left it at that.

I even know some that were compliant, and when bought out by NatBank, al of a sudden shut down all operations except in Florida. This was clearly based on numbers, not compliance issues.

[jkhanna]

I am back again. I have checked with my broker again and with TD waterhouse. The answer is the same. There is very little that they can do with funds within RRSPs per SEC restrictions. These brokers in Canada are not eligible to trade freely in RRSP accounts. Believe me my broker is a good friend as well and he will do whatever is best for me. He would like to keep my money invested in RRSP. The fact that if I convert it into RRIF and draw the cash after 10 years and pay only 15% withholding in Canada, that's fine. But, my US bracket may still be around 25% or so. Thus, the withholding in Canada from 25% to 15% does not really mean that I will save 10% if I held on to RRSP accounts for another 10 years. I may save the difference between current marginal rate and the rate when I start drawing.

I tried to see if I could convert C$ into US$ and invest in US$ withing RRSP - that's is not possible. If I convert in US $ and invest in US $v securities within RRSP, they will be denominated in C$ so the whole purpose is lost.

Does this make any sense? Or, am I losing off track somewhere.

[jkhanna]

For example, I can buy US stocks within my RRSP account, but at the time they are bought, the US$ is converted into C$ to settle for the purchase price. The same thing will then happen when I sell them. So, I do hold the US security within RRSP but no hedge against exchange rates. Can't invest in securities in US $ within RRSP. If your TDW broker can do it, I would like to get his contact info and talk to him.

[nelsona]

I'm sorry you are having such trouble. I would continue to emphasize however that it is your investing in US-based investments that will provide the hedge, not the holding of them in US dollars. Holding CASH in USD rather than Cdn is what you are confusing.