When transferring funds from one institution to another, there are three different options to choose from:
- Entire account in cash (Most Common): Your institution will sell your holdings and move the money to us, but keep in mind you may be charged DSC or trading fees, which Mercer Invest Wise cannot reimburse.
- Entire account as is: We move your holdings to us as they are today. We'll be reaching out to you via email regarding the liquidation of your holdings and will not liquidate anything until we receive confirmation from you.
- Part of the cash in my account: You can partially transfer any cash amount that is already sitting in your account to us. Before submitting your transfer, you need to liquidate your holdings with your other institution generate enough cash for the amount you've requested.
There are no tax implications for transferring non-taxable accounts (like your RRSP, TFSA, or RESP).
Now you know what they are. But which one should you choose?
Typically, transferring your entire account in cash is the most common method our clients choose. But there are a few circumstances where it's better to transfer your funds “as is.” 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) please create a request and a Relationship Manager will assist.