RDSP with TD Direct Investing a Step in the Right Direction

After being tipped to a change on Friday by a Twitter follower, I went to check out, and yes, my RDSP with TD Direct Investing has changed their RDSP (Registered Disability Savings Plan) account so that an investor (or their proxy) can trade in the account with funds in the account on-line. Previously, you had to call the TD Easyline folks to change or trade securities, index funds or whatever in these accounts on the phone (only). This is some very heartening news.

While I am happy and wish to thank TD Direct Investing for taking this (small) step, we still have a few more steps to shorten.

The process before the change on Friday was:

1. Transfer money from a TD Bank account to a TD Direct trading account
2. Transfer the funds from the TD Direct  Trading account to the RDSP with TD account
3. Purchase securities with the transferred money

All 3 of those steps were only “do-able” using the phone interface (which right now is under a heavy load due to the fun and games in the stock market but I digress) only.

The new process looks to be (and I am willing to eat my keyboard on this if someone can assure me this can be done in one step)

1. Transfer money from a TD Bank account to a TD Direct trading account on the phone
2. Transfer the money from the TD Direct Trading account to the RDSP with TD account on the phone
3. Purchase securities with the transferred money when you wish using the on-line interface using Webbroker

(not sure, step 1 may be redundant, you may be able to transfer from a savings account to an RDSP account over the phone)

While this is a better solution, however, I would much rather see a 2 step solution:

1. Transfer money from a TD Bank account to a TD Direct Investing RDSP Account Using Easyline (i.e. on line)
   
   
2. Purchase securities with the transferred money when you wish using the on-line interface using Webbroker

However, an even better set up would be an automatic “per paycheque” purchase in EasyWeb, that would buy TDB8150 the TD Waterhouse “high interest” savings account (or something similar, maybe a T-Bill Index fund, or transfer cash), so I can then accumulate funds in the RDSP Savings vehicle, which I can then use to buy ETFs, Index Funds, or whatever, every quarter.

To my friends at TD Direct Investing, Good start! Now please keep working hard to get to a more streamlined solution.

Update: Workaround for RDSP issue

Addendum, I forgot that two smart folks, Bobby Vu and Steven Reeves, last year, commented that I could try “Paying it as a Bill.” The plan would entail setting up a bill payment to TD Direct Investing with my son’s RDSP account number. I have set this up, and it works. I can deposit it directly to my son’s RDSP.

Previous Discussions on Topic

• RDSP and TD Aggravations pretty much the day after I opened the account, I noticed the deposit issue.
• Not a very big step taken, in fact, none at all, really, RDSP with TD Direct Investing a Step in the Right Direction
• RDSP update and a TD Explanation in 2013 TD claimed they would “fix” the deposit issue. As you have read, they didn’t.

Index of RDSP Pages

Here is the RDSP Page List in case you got here and are wondering where to find out more information.

• The Registered Disability (RDSP) page, where you most likely came from. Check here for all things to do with RDSP and applying for it.
• How to Laying the Groundwork for an RDSP outlines the most difficult part of the process: applying for a Disability Tax Credit (DTC).
• How to Open an RDSP account sounds simple, but it is fraught with landmines and hidden silliness. Open the most flexible investing account possible.
• Disability Tax Related Topics covers a wide scope of tax-related ideas and concepts once your loved one has a Disability Tax Credit.
• Autism Specific Articles is a page dedicated to what I have learned about Autism, money and life.