http://www.investingintelligently.com/2007/07/13/ask-dave-usd-holdings-in-an-rrsp/ Not just another (Canadian) financial blog Sat, 16 Oct 2010 15:22:19 -0700 http://wordpress.org/?v= hourly 1 http://www.investingintelligently.com/2007/07/13/ask-dave-usd-holdings-in-an-rrsp/comment-page-1/#comment-7243 Ask Dave: US Dollar Investments Inside Your RRSP at Investing Intelligently Wed, 07 Nov 2007 08:15:28 +0000 http://www.investingintelligently.com/2007/07/13/ask-dave-usd-holdings-in-an-rrsp/#comment-7243 [...] With no more foreign holding limits inside RRSPs, a lot of people are looking into holding foreign currency investments inside the RRSP. In fact my first ever “Ask Dave” post was about this very topic (see “Ask Dave: USD Holdings In an RRSP“). [...] [...] With no more foreign holding limits inside RRSPs, a lot of people are looking into holding foreign currency investments inside the RRSP. In fact my first ever “Ask Dave” post was about this very topic (see “Ask Dave: USD Holdings In an RRSP“). [...]

]]> http://www.investingintelligently.com/2007/07/13/ask-dave-usd-holdings-in-an-rrsp/comment-page-1/#comment-6979 Dave Mon, 16 Jul 2007 14:47:15 +0000 http://www.investingintelligently.com/2007/07/13/ask-dave-usd-holdings-in-an-rrsp/#comment-6979 Oh yeah I forgot that you have to go between a money market fund. Oh yeah I forgot that you have to go between a money market fund.

]]> http://www.investingintelligently.com/2007/07/13/ask-dave-usd-holdings-in-an-rrsp/comment-page-1/#comment-6978 0xcc Mon, 16 Jul 2007 13:21:13 +0000 http://www.investingintelligently.com/2007/07/13/ask-dave-usd-holdings-in-an-rrsp/#comment-6978 Actually, TD Waterhouse allows you to do what is sometimes called a 'wash trade' but that may not work in the specific situation you describe. You can buy a US dollar money market fund and add to that at any time you want. This effectively allows you to hold US dollars in your account (although you are really holding units of a mutual fund). Then when you decide to buy a US stock or ETF you can go ahead and place an order as you normally do. Then if you have enough in the US money market fund you can call TD Waterhouse and ask them to sell enough of the US money market fund to cover the stock/ETF purchase you made and ask them to not convert the US funds to Canadian and then back to US again, just get them to use that to pay for the US stock/ETF. Since stocks have a 3 day settlement period and mutual funds only have a one day settlement period this works well. There may be other brokerage houses that allow you to do the same thing but I have an account with TD Waterhouse so that is all I know about. Canadian Capitalist wrote about this a few months ago if you want more information you can check out his site. Actually, TD Waterhouse allows you to do what is sometimes called a ‘wash trade’ but that may not work in the specific situation you describe. You can buy a US dollar money market fund and add to that at any time you want. This effectively allows you to hold US dollars in your account (although you are really holding units of a mutual fund). Then when you decide to buy a US stock or ETF you can go ahead and place an order as you normally do. Then if you have enough in the US money market fund you can call TD Waterhouse and ask them to sell enough of the US money market fund to cover the stock/ETF purchase you made and ask them to not convert the US funds to Canadian and then back to US again, just get them to use that to pay for the US stock/ETF. Since stocks have a 3 day settlement period and mutual funds only have a one day settlement period this works well. There may be other brokerage houses that allow you to do the same thing but I have an account with TD Waterhouse so that is all I know about. Canadian Capitalist wrote about this a few months ago if you want more information you can check out his site.

]]>