Thursday, October 29, 2015

I switched from TD Monthly Income to TD Monthly Income

So far, the TD Monthly Income has been a better option than annuities for me.
Although some of the sparkle has dimmed when it comes the the TD Monthly Income fund (TDB622), it is still a fair place for a retiree to park a chunk of portfolio money. (See the above screen grab.) Combine TDB622 with a lesser amount of the TD U.S. Index Fund-e (TDB902) and one has the beginnings of a fine portfolio with very good allocation and no great amount of investment knowledge necessary.

This approach has gotten even better. TD is now offering D-series funds to investors with TD self-directed accounts. These funds have lower than usual management fees because the trailing commissions are restricted to .25%. Do-it-yourself investors shouldn't be paying big trailer fees for advice they neither need nor receive. One could argue that even at just a quarter of a percent, this charge is still a little steep. These funds are only available to investors with TD self-directed accounts.

Yesterday I switched from I-series TDB622 to D-series TDB3085. One call to TD Waterhouse is all it took. There was no charge. All quite simple. I understand I will now spend about 30 percent less in management fees. The old TDB622 was not all that expensive with a MER of about 1.48 percent but the new D-series TDB3085 shaves a little off that. I may pay about one percent when all is said and done.

I have owned TDB622 for many years and it has been a good, solid performer. There are funds that have done better but not many are as dependable and in retirement dependable is important. In the recent past I have been taking my own advice and adding some TDB902 to the mix. So far this is proving very satisfying and very profitable as the U.S. market is on a roll.

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