Every day our team fields phone calls and emails from clients asking how they can put money into their investment account. The inquiry is from the mindset of what is the most efficient way to make the deposit that is secure, easy and fast.
Many of our clients that are working are generating more income than they are spending. This is especially the case, once the mortgage is paid off. When this is the case, the focus normally turns to using the accumulated funds to build up investments savings in non-registered accounts, Registered Retirement Savings Plans (RRSP), Registered Education Savings Plan (RESP) and Tax Free Savings Accounts (TFSA).
Some of our retired clients are making deposits into their investment accounts. In some cases, the pension and other income they receive exceed their expenses, and they would rather have us invest these funds than have them sit in a bank account earning very little.
When our clients sell a house, major asset (i.e. boat, plane), business, or receive an inheritance, they will often call to request guidance on how best to get the proceeds to us to invest within their accounts. Below are a few of the most common ways clients can make deposits into their investment accounts.
Every institution will have their own specific policies but the expectation is that branches will generally not accept cash deposits of any size, unless there is an exceptional service situation (e.g. to facilitate a client covering a small debit balance); however, this is possible only when the branch has appropriate procedures and controls in place to handle cash deposits. It should be noted that travelers’ cheques are considered as cash deposits and typically will not be accepted. The best course of action would be to deposit the cash to your bank account and then use one of the methods below to fund your investment account(s).
Mailing or dropping off a personal cheque
One of the easiest and simplest ways of funding your investment account is to write a personal cheque and either mail it to us or drop it off at the branch. In this case you would make the cheque payable to the institution. It is always worth confirming who to make the cheque payable to. For example, with the rebranding our firm is now referred to as “Scotia Wealth Management”; however, when clients are writing out cheques to deposit to their account they should make the cheque payable to “ScotiaMcLeod”.
Do not make the cheque payable in the name of your Wealth Advisor or portfolio manager. For segregation of duties, the mail is not opened by the portfolio manager, but rather another staff member in the branch that will immediately secure the cheque and ensure it is deposited to the correct account. To avoid any confusion, we recommend writing the investment account number in the memo section of the cheque (i.e. Account 123-45678-90). If your deposit is funding to a few different accounts such as TFSA and RRSP contribution, you can simply write one cheque for the total amount, and it can then be allocated to the proper accounts (i.e. $12,000 cheque to be allocated into two different TFSA account — $6,000 each). When this is done, we recommend that you put both account numbers in the memo field with the respective dollar amounts written beside each account number.
Draft or Certified Cheque
A lot of clients that we have spoken with have the thought that a draft is more reliable than a personal cheque. This is a natural assumption given that when you have a draft issued from a bank account the funds are pulled out immediately. However, when a draft is deposited, we are required to prove the source of funds and require the issuing bank to confirm that the draft was in fact issued from your account. In general, Bank Drafts are not a preferred form of payment and we encourage clients to issue a personal cheque or use one of the electronic options mentioned below to make deposits.
Electronic Transfers from Scotiabank to Scotia Wealth Management
For those that use the same institution for both their banking and their investments, making deposits can be done electronically. In the case of Scotiabank and Scotia Wealth Management — you would simply log on to your online access and transfer between accounts such as a chequing account and an investment account. If you do not have online access to your accounts, you could use the telephone banking services to have them complete the transfer for you. Alternately, you can use the good old fashioned way and go into your local branch and have a branch representative complete the transaction for you. Whichever way is your preferred method, it is always a little bit easier when you deal with the same institution.
Direct Debit from Scotiabank to Scotia Wealth Management
With some of our clients that do their day to day banking with Scotiabank, we have a signed agreement on file that allows us to pull funds directly from their Scotiabank chequing or savings account and move it directly to their non-registered account. In this scenario, a client would send us an email asking us to take money from their Scotiabank account on file and move it to their Scotia Wealth Management non-registered account. Once we receive the request, we would always confirm verbally with the client that this is their intention, and once we have confirmed, we submit the request. The funds then arrive in the investment account on the same day.
Direct Debit from non-related bank to Scotia Wealth
It is not a requirement for our clients to have their day-to-day banking with Scotiabank. Some prefer to use a bank that is in closest proximity to where they work or live. Some of these same clients like the idea of forced savings and putting aside a certain dollar amount every month. When a client is wishing to set up a regular stream of savings, we can automate this process by having the client sign a Pre-Authorized Contributions (PAC) form. The PAC form is also used with clients who have their day-to-day with Scotiabank. This is an automated way to set up a steady stream of investment saving regardless of where you do your banking.
Electronic Transfers from non-related bank
If you bank at a non-related bank then there are still ways in which you can electronically deposit funds to your Scotia Wealth Management accounts. In this scenario, it is done just as if you were paying one of your bills, such as B.C. Hydro, Fortis Gas or your telephone.
1. Add the associated investment account as a bill payee (i.e. ScotiaMcLeod)
2. Provide the account number of the account you would like to make the deposit to (for ScotiaMcLeod it would be ten digits)
3. Process the amount you want to deposit as a bill payment to the investment account
The set-up will vary between each institution and if you require more assistance you should contact the financial institution of where you are sending the funds from. If clients have never done this before, we will suggest that they test the electronic method by transferring one dollar. We will then confirm the transfer on our end, before they proceed with transferring a larger dollar amount. Each financial institution will impose a daily limit on these transactions. If you wish to do larger deposits electronically then we would recommend doing it as a wire transfer which is the next option mentioned below.
Doing a wire transfer could make sense when you are looking to electronically transfer larger dollar amounts or if you are looking to transfer funds in a currency other than Canadian dollars. Say, for example, you have received a large inheritance from a relative who lives in the United Kingdom and you would like the proceeds to be deposited to your Scotia Wealth Management investment account. The quickest and most convenient way to have the funds transferred is by having the sending institution send it as a wire payment. Some typical information you will need to provide to the sending institution would be:
• Beneficiary Institution
• Canadian Routing Code
• Swift Code
• Account with Bank SWIFT Code
• Beneficiary Customer
• For further Credit
This information is easily obtained by asking your portfolio manager to provide you with the details specific to your account and institution.
Another situation where having your funds sent via wire transfer makes sense is if you are transferring a large amount from your regular Canadian bank in either Canadian Funds or US funds. The information required is similar to the information mentioned above and again can easily be provided by your portfolio manager.
Third Party Deposits
A third party deposit is usually defined as a deposit (cheque or wire) made payable to a client where the payor is different from the name on the account where the funds are being deposited. An example of a third party deposit could be when a client works for a company that matches his or her RRSP contributions and sends a cheque monthly to the client’s Group RRSP account. Another could be where a grandparent would like to add some funds to their grandchild’s RESP account set up by the parents. In all of these cases, there is going to be enhanced scrutiny on the deposit due to the fact that third party deposits can represent money laundering activity.
In order to accept the third party deposit, a few things that we are required to do are determine why the third party cheque or wire is being deposited, what is the relationship of the third party to the client, contact the issuer of the cheque or wire to determine the appropriateness of the deposit, and contact the financial institution involved with the cheque or wire to determine if the funds are available.
Kevin Greenard CPA CA FMA CFP CIM is a portfolio manager and director, wealth management, with The Greenard Group at Scotia Wealth Management in Victoria. His column appears every week at timescolonist.com. Call 250-389-2138. greenardgroup.com
This millennial tech worker is meticulous about saving, but his investment gameplan needs work – TheChronicleHerald.ca
It’s atypical for someone his age, but this 27-year-old tech support worker we’ll call Duke is confident he doesn’t need financial advice when it comes to spending or budgeting.
Duke, who earns $66,000 per year in Toronto, has been meticulously laying out his budget since he started working part-time in 2015. He divides his monthly take-home salary of $3,700 by 4.5 to give him a weekly budget of about $822. Each transaction he makes is placed into a spreadsheet where it’s dated and filtered into a category such as food and entertainment. A final column shows what percentage of his weekly budget was spent.
He’s never spent more than he’s earned, he said. In fact, he’s usually left with $1,000 at the end of the month to pump into his chequing accounts, which total $108,000.
“I don’t feel a financial adviser would be able to tell me anything I don’t already know,” said Duke of his spending.
Are you a millennial who wants to get the most out of your money? Contact Victor at
to appear in future edition of Spent, an entertaining look at the financial lives of real Canadian millennials.
He knows that, despite his budgeting, he could benefit from cutting down his food bill, which totalled $742 in the month Spent looked at his expenses. The bulk of that budget goes to groceries. Duke spent $286.66 over three trips to No Frills, $95.92 at Costco, $25.35 in two trips to Loblaw’s, $8.77 at Fortinos and an additional $100 at a local Chinese grocery store.
As far as the rest of his spending, he said he can’t make any other concessions. He only uses his car for transport — no ride sharing or public transit expenses appear in his monthly spending — and he spends just above $400 on insurance, gas and parking. His entertainment budget is light and so are his bills — $1,000 for rent, $42 for his cellphone and $15 for a gym membership.
Where he could stand to benefit from professional advice is not in regards with how to manage his funds, but how to invest them.
Duke does not have any money in a tax-free savings account and the only space being taken in his RRSP is from a work pension plan. When he first started investing in 2017, he placed $10,000 into a non-registered account and invested in a suite of mutual funds.
Over a year, he quickly grew frustrated with the high management fees he was paying and the heavy losses he was taking.
“I had no faith this person behind the counter could do a better job than me if I just got a little bit more of a background on what to invest in,” he said.
So he waited a few months before breaking even again and pulled his money from mutual funds, redirecting $3,000 into four index funds where he gave Canadian equities, U.S. equities, international equities and Canadian bonds an equal weighting of 25 per cent each.
Duke has had more success with this portfolio, but he wants more. He’s eyeing higher returns and is willing to put $100,000 of his money to work to generate them. He’s willing to take on risk, but at the same time, he wants his portfolio to be hedged against potential danger. Spent asked Frank Ortencio, portfolio manager of Raymond James’ Ortencio & Associates Wealth Management Group to help guide him.
Ortencio describes himself as an asset allocator — not a stock picker. He builds his portfolios by using ETFs to give him exposure to certain geographic regions and sectors.
Duke is still young and doesn’t have a pressing need to use his money over the next five years. He should be looking to take on more risk, Ortencio said.
“If he can live with the volatility he can increase his equity allocation to 90 per cent equities and 10 per cent bonds,” Ortencio said.
The first steps in Ortencio’s plan are to have Duke max out his contributions for both his RRSP and his TFSA. That would mean pumping $20,000 and $63,500 into the respective accounts. The remaining $17,500 would be placed into his non-registered account, joining the $3,000 already in there for a total of $20,000.
As for how he’d invest it, Ortencio said Duke can get all the bond exposure he’d need by investing 10 per cent of his portfolio into a single global bond ETF that would be held in either his RRSP or TFSA.
Duke would then begin slicing up the weightings in his equity portfolio by geographic region. Ortencio knows some investors might balk at the suggestion, but he wouldn’t recommend Duke place more than 12 to 15 per cent of his equity portfolio into Canada. He suggested the iShares MSCI Canadian Minimum Volatility ETF, which has dividend-based bank, utility and pipeline stocks among its top holdings.
“Canada is only about four per cent of the world market,” said Ortencio, who explained that Duke could much more easily diversify his portfolio if he avoids home bias.
Sixty per cent of Duke’s portfolio would then be weighted to global stocks, Ortencio said. Duke could either look for one global ETF that excludes Canada from its holdings or one fund that holds U.S. stocks and another that focuses on international firms. Again, he recommended two low-volatility products in the iShares Core MSCI All Country World Index Ex Canada ETF and the Power Shares S&P 500 Low Volatility ETF.
It’s in the remaining portion of Duke’s portfolio that he’ll take on more risk and expose himself to volatility, Ortencio said. Ten per cent can go to small and mid-cap stock ETFs, another 10 can go to REIT and technology ETFs and the final five per cent would be attributed to emerging markets. Within this section of the portfolio, Duke can also buy individual stocks — he voiced some interest in names like Tesla Inc. and Beyond Meat Inc. — but Ortencio wouldn’t recommend investing more than 10 per cent in one name.
“And 10 to 20 stocks would be too many,” he added.
Duke can keep some of his index funds in his non-registered account, as long as he adjusts their weightings. He can then use a Systematic Investment Plan, which allows investors to make automatic purchases and contribute $700 on a monthly basis going forward.
The important thing for Duke to remember, Ortencio said, is that while this portfolio might fall short of the max growth on the table during a raging bull market, it’ll also better insulate him in a sell-off like the one investors saw in March.
“This portfolio because it has a heavier tilt toward equity … the best-performing market, let’s say it’s up 10 per cent, his returns should be in the seven to eight per cent range,” Ortencio said. “But when the markets are down 10 per cent, because of the diversification, he may participate only on 70 per cent of the downside.”
Ortencio’s portfolio is an appealing one for Duke, who is happy with the opportunity to make more returns than he has in his time as an investor while also ensuring he retains some safety.
“This is definitely something I want to get up and running,” Duke said.
Copyright Postmedia Network Inc., 2020
Parkland eyes investment at Port of Oshawa – constructconnect.com – Daily Commercial News
OSHAWA, ONT. — The Hamilton-Oshawa Port Authority has announced that Parkland Corporation has signed an agreement that could lead to construction of a liquid bulk transfer facility on the Port of Oshawa’s east wharf.
Parkland agreed to a Notice of Permission to evaluate investment, noted a July 30 release. Starting in August, Parkland will use a seven-month due diligence period to complete engineering design plans, prepare for various regulatory filings and conclude economic studies.
“Parkland already plays a leading role meeting the fuel needs of Ontario residents,” said Ryan Krogmeier, senior vice-president at Parkland, in a statement. “As we continue to pursue high-quality growth opportunities and extend our supply advantage, an import terminal in Oshawa would complement our existing transloading facilities in the Greater Toronto Area.”
“Parkland is a responsible operator with extensive experience operating commodity transload terminals in Ontario. The company operates a terminal at the Port of Hamilton where it has maintained an exemplary record of safety and environmental performance,” said Port Authority president and CEO Ian Hamilton.
In spring 2020, a new grain export terminal, constructed by Sollio Agriculture and QSL, entered its first full season of service in Oshawa. The new facility gives Durham Region grain producers a local option to market their grain for export.
The Hamilton and Oshawa port authorities amalgamated in June 2019. Since then, the new port authority has identified approximately $25 million in work such as dock reconstruction, lighting and dredging that is required at the Port of Oshawa.
Call for applications – AMF seeking applications for a position on the Investment Products Advisory Committee – Canada NewsWire
MONTRÉAL, Aug. 6, 2020 /CNW Telbec/ – The Autorité des marchés financiers (“AMF”) is seeking applications for a position on its Investment Products Advisory Committee (the “Committee”).
The Committee’s core mandate is to discuss issues relating to ensuring efficient frameworks for creating, managing and distributing investment products—mainly mutual funds, exchange-traded funds, non-redeemable investment funds and individual segregated funds—and provide feedback and suggestions for enhancing the development and implementation of those frameworks.
Set up and coordinated by the AMF, the Committee is composed of up to 15 outside members from various sectors and professions related to investment products, as well as AMF representatives. Members must have extensive experience in their respective fields and a solid understanding of investment product regulation.
The AMF seeks to have a Committee composed of members representing manufacturers and distributors of the above investment products in particular, as well as investor advocates. It also wants to ensure that members reflect the various business models within Québec’s investment sector.
Committee members are appointed for a maximum three-year term. This term of office may be extended in accordance with conditions determined by the AMF. The Committee meets three to six times annually and members are not remunerated for their participation.
In order to maintain the appropriate representation of expertise, the AMF is especially interested in applicants who have extensive experience in investment fund creation and management, portfolio management or alternative asset management. Persons wishing to join the Committee should consult the call for applications. The deadline for applications is September 4, 2020.
The AMF favours diversity within its advisory committees and welcomes applications from all qualified persons.
The Autorité des marchés financiers is the regulatory and oversight body for Québec’s financial sector.
Sylvain Théberge: 514-940-2176
Québec City: 418-525-0337
SOURCE Autorité des marchés financiers
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