Category: DIY Investors

Caution: Transferring RRIFs between brokers

RobHLeave a comment

DIY investors include a growing number of RRIF holders (like me). If you want a primer on RRIFs, you can read that here. There are some strange nuances involved with moving RRIFs between brokers which may not be obvious and are not documented anywhere — or if they are, I have yet to find where.

I’ve covered parts of this topic before, (here and here) but this post attempts to summarize the weirdness so you don’t get caught unaware. It is my belief that the cautions outlined below are applicable to ALL brokers, but happy to learn otherwise, just drop me a line at comments@moneyengineer.ca, I read all my mail.

For simplicity, I’m going to refer to the “sending” broker (the broker that currently manages the RRIF) and the “receiving” broker (the broker to whom you’re transferring those same assets).

Caution 1: A sending broker cannot transfer a RRIF unless it has fully paid out RRIF minimum for that year.

As RRIF aficionados will know, at the end of the calendar year, a new “RRIF minimum” amount is calculated by the broker based on the market value of the RRIF at that time and the age of either the RRIF owner or the spouse of the RRIF owner. This is a well-known fact. What is perhaps not so well known is that the broker who holds the RRIF at the start of the year is obligated to pay out the full amount of the RRIF minimum, even if that RRIF is transferred in the course of the year1.

This has implications, especially if you attempt the transfer early in a calendar year:

  • You are going to end up with “extra” cash that you weren’t expecting. You’ll have to be prepared to do something with that money, but what? Leave it as cash? Invest it in a HISA? Invest it in an all-in-one?
  • This early windfall also means that your potential tax-free growth2 is lost.

Caution 2: Waiting past end of November to initiate a RRIF transfer runs the risk of tying up your RRIF funds for multiple months

“Fine”, you think, “if I wait until late in the year to transfer my RRIF, I can avoid the problems inherent in Caution 1”. This is what I thought, too. I was, again, wrong.

There seems to be an industry-wide pause on RRIF transfers that starts in late November and lasts until January of the following year. I’ve seen more than one mention of it. Questrade’s message when I attempted to transfer-in my RRIF to them was

“Please be advised that RRIF/LIF account transfers are subject to the industry-wide cut-off date, November 28, 2025. This cut-off date is not specific to Questrade, but is arranged and agreed upon by all Canadian financial institutions to ensure yearly payments are made in an orderly and timely manner to all account holders.”

It appears I got extremely unlucky: the transfer STARTED before November 28th, but failed to fully complete before the deadline. Performing a transfer is a multi-step process using a service called “ATON”34. You can read all about how ATON works over here.

In my case, it took until mid-February for the transfer to complete. During that time, the account was in limbo, and no payments could be made. For someone who expects to be paid monthly from a RRIF, this was a bit of a problem.

Advice: Initiate RRIF transfers before November 1.

This ought to give enough time for the transfer to complete before the cut-off date. And minimizes the amount and time you have “extra” money floating around. You can help make sure your transfer goes as expected:

  • Make sure the assets you hold are supported at both institutions. GICs are a frequent problem. So are bank-backed HISAs. If you hold assets like that, do yourself a favour and sell them before you initiate the transfer so that they are just cash.
  • If you hold fractional shares in your account5, get rid of them by selling off the fractions or buy more so that you have whole shares. From what I’ve read, fractional shares are a construct that is broker-specific and will cause issues when you attempt to transfer them.
  • Make sure you have enough cash in your RRIF so that the sending broker can pay out your RRIF minimum before the transfer begins.

Happy investing. If a transfer really goes astray, it looks like OBSI can help.

  1. This CRA link seems to be the one that states this. ↩︎
  2. Since the average gains of the market are positive, I’m always going to make the assumption that it’s better to be invested than not. You could of course get lucky and avoid a big market downturn because your RRIF cashed early, but that’s not how I think about investing. Time in the market is always better than timing the market, per Ken Fisher ↩︎
  3. “Account Transfer Online Notification”, apparently per https://cffim-fcmfi.ca/wp-content/uploads/aton-best-practices-guide-Jan-15-2021-v9.9.pdf ↩︎
  4. I am indebted to Financial Wisdom Forum users NorthernRaven and OptsyEagle for their help in understanding what went wrong in my case ↩︎
  5. Wealthsimple (for all shares/ETFs) and Questrade (for some US shares/ETFs) both offer this option. There may be others. ↩︎

Quick links for the long weekend

RobHLeave a comment

(Quick aside: as a retiree, I did have to make sure this coming weekend was, in fact, a long weekend 🙂 )

What’s the deal with AOA?: updated

While many Canadians are familiar with all-in-one products that trade on the Canadian exchanges (XEQT/XGRO, VEQT/VGRO, TEQT/TGRO, ZEQT/ZGRO), there is also a USD product that I use quite heavily in my retirement portfolio. That ETF is AOA. In this updated post, I break down what’s inside it. TL/DR: lots of US Equity, lots of International Equity, a tiny slice of Canadian equity, and broad coverage of the US and international bond markets.

Rob Carrick is back in (digital) print

One of my favourite ex-Globe And Mail staffers was Rob Carrick, the keyboard behind such valuable assets as the ETF Buyer’s Guide. He retired last year, but it seems he’s back doing the same job in a different way. He’s now writing on Substack, and you can find his words of wisdom over here: https://substack.com/@robcarrick1.

PWL on Retirement: “Finding and Funding a Good Life”

Not a new publication, but new to me…It’s penned by Ben Felix, a certified Canadian financial rockstar. Looks like a good read over a cup of coffee. Finding and Funding a Good Life.

The magnificent seven ETFs

RobH2 Comments

Since my investment strategy is to own the market via passive index investing, I know that some of my retirement savings are tied up in those famous seven tech stocks1. But that’s not what I’m talking about.

For a year or so I’ve been talking about my ETF All-Stars, but I’ve come to the realization that the list isn’t complete. I discovered that I could do better in terms of where I hold certain assets, I’ve now also realized that I need 7 total ETFs to achieve my investment objectives across non-registered, TFSA and RRIF accounts. These seven ETFs are 90% of my retirement portfolio. The other 10% are found in the non-registered account and are legacy investments. Over the next 5 years, these legacy investments will disappear altogether.

Here’s how the seven2 break down:

AOA: An all-in-one USD ETF

AOA is an 80% Equity / 20% bond ETF. It’s roughly 50% of my retirement savings, and it’s exclusively held in my RRIF accounts. I’ve invested in USD ETFs for quite a long time now, and this one holding locks up most of my USD funds. The problem with AOA is that it tilts too far into US Equities (50%) and has very little exposure to the Canadian stock market (about 2.67%). So I have to compensate elsewhere.

XGRO: An all-in-one Canadian ETF3

XGRO is an 80% Equity/ 20% bond ETF, about 15% of my retirement savings. It’s the Canadian sibling of AOA in every way. It holds 20% Canadian equity and 36% US equity, so it helps take down the US bias of AOA a bit. It’s held exclusively in my RRIF accounts.

XEQT: An all-in-one Canadian ETF

XEQT4 is from the same family as XGRO but doesn’t hold any bonds. It helps take down the bond percentage of my overall portfolio from 20% to 15%. Since equities tend to grow faster than equity/bond combinations, and since my TFSA is the last account to be touched in my retirement income planning, XEQT is held only in my TFSA accounts.

XIC: A low-cost Canadian Equity ETF

XIC5 holds only Canadian Equities and helps fix the lack of Canadian content in AOA. As a 100% equity ETF, it lives mostly in my TFSA. Historically, I also hold this in my non-registered accounts but this will be reduced as I dip into my non-registered funds to pay my bills.

ICSH: A USD money-market fund

Technically, ICSH is an ultra-short-term bond fund, but I treat it the same way as I would treat a HISA. Cash is 5% of my portfolio in retirement, and it’s mostly in ICSH since US Interest rates are much higher than Canadian ones at present. I’d switch this holding to ZMMK if the opposite was true. ICSH lives both in my RRIF and my non-registered accounts. It’s only in my non-registered accounts because my decumulation strategy (VPW) requires a “cash cushion” to smooth out my monthly salary.

XCB: A Canadian Corporate bond fund

The way the math works at present, I’m a little short in bonds, and so I have a bit of XCB sitting in the RRIF to keep my asset targets in line. XCB is a nice low-cost corporate bond fund; I chose corporate because AOA and XGRO give me plenty of exposure to government bonds.

ZMMK: A CAD money market fund

ZMMK is a small portion of the cash cushion which is mostly invested in ICSH. If Canadian interest rates exceed US rates, then my holdings here would grow accordingly.

  1. My retirement portfolio is about 36% US equity, and the mag 7 make up about 10% of the US market, so say 4% of my retirement savings. ↩︎
  2. I thought I was going to need XAW as well, but worked out a plan to eliminate it ↩︎
  3. You could also consider ZGRO, TGRO, VGRO from BMO, TD, and Vanguard respectively. They are all pretty similar. ↩︎
  4. You could also consider ZEQT, TEQT, VEQT. Tomato, Tomahto. ↩︎
  5. VCN is another good choice; it’s pretty much the same thing. ↩︎

Achievement: Down to two providers

RobHLeave a comment

I am trying to keep my retirement investments as simple as possible, really I am. And this week, I finally reduced the number of providers I use from three to two. Most of my retirement investments (RRIFs, TFSAs, non-registered) are now held with Questrade, excepting one RRIF account I hold with Wealthsimple.

I had intended to be down to two providers back in March 2025, but then I uncovered a wrinkle in how providers deal with RRIFs and I ended up keeping 4 RRIF accounts over at QTrade during 2025. These 4 accounts funded my RRIF minimum payments in 2025.

One RRIF was moved to Wealthsimple in early November 2025 and this was an altogether painless experience, and I’ve been enjoying free money every month from Wealthsimple for my troubles. A good deal.

I waited until late November 2025 (November 26th, to be exact) before starting the transfer exercise from QTrade to Questrade for the remaining three RRIFs. And it took until this week (February 6th, 2026) before the assets finally showed up. That’s 72 days, a little over 10 weeks. Here’s a timeline:

  • November 26th: Submitted paperwork electronically to Questrade
  • On December 2nd, QTrade charged me the $150 transfer out fee on each account (plus tax).
  • On December 8th, I got the following message from Questrade: “Please be advised that RRIF/LIF account transfers are subject to the industry-wide cut-off date, November 28, 2025. f you would like to proceed with your transfer request, we require a document showing that the RRIF/LIF minimum payment was made for the year 2025.”
  • I submitted this proof (which, as I mentioned previously, was more than a little annoying) but nothing happened. After many calls to both Questrade and QTrade, I gathered that transfers at this point in the year were impossible. Of course, QTrade had already charged me the $150 plus tax transfer out fee.
  • In the new year, I resumed hassling Questrade and QTrade support for updates. This was made more complicated by a free money promotion offered by Questrade, which meant their support desk, shaky at the best of times, became completely overwhelmed. I saw a series of cryptic messages in my transfer update that indicated somebody wasn’t responding to a followup. These cryptic messages disappeared from my status update last week, which I either took to mean progress or an attempt to cover up inept practices, I haven’t decided which yet.
  • Anyway, without much fanfare, the assets appeared in my RRIF accounts on Friday, February 6th. My transfer status still shows “in progress”, for what it’s worth.

Anyway, I’m happy this latest transfer is done, but there’s still some tidying up I have to do:

  • I have to make sure I know what Questrade will use for RRIF minimum for the newly moved accounts. That’s another call to support, regrettably. And since I missed a month of payments, I have to figure out how to catch up.
  • I have to make sure Questrade refunds me the transfer out fees. I uploaded the documentation (which, I note, Wealthsimple does not require) to “prove” I was charged $1501.
  • I will check (again) to ensure all these RRIF accounts have a properly documented successor. That’s really important.

This last go-round was especially unsatisfactory since I got no free money out of it, which is really quite galling given how much is being thrown around these days2.

Anyway, it’s nice to have a simpler view of my portfolio; Passiv gives me a unified view across Wealthsimple and Questrade, but since the relationship between Questrade and Passiv has come to an end, I’m not sure what that will entail once my free “elite” subscription ends in March.

  1. Since every broker does this, this is 100% an exercise to prevent refunds to the unwary. . ↩︎
  2. Just search this site for “free money” if you don’t believe me. ↩︎

ZEB versus XIC: Is buying *only* Canadian banks a valid strategy?

RobHLeave a comment

A recent newsletter (On Money) from the Globe and Mail caught my attention. In it, the author (David Berman) made the assertion that ZEB (a BMO ETF that invests solely in the Big 61 Canadian banks) was a better way of investing in the Canadian banking segment over holding the stocks individually. Two of the big reasons align very well with my own philosophy, namely:

  • The ETF fees include regular rebalancing
  • The ETF removes the temptation to time the market

These are the main reasons the majority of my retirement savings are in all-in-one ETFs like AOA and XGRO.

But anyway, what caught my eye about the article were the eye-popping returns of this segment, especially compared to the overall TSX, captured in an ETF like XIC. So I did a quick analysis which I share with you here:

In summary,

  • Canadian banks make up about 1/3 of the Canadian stock market (and hence XIC)
  • This segment has outperformed the overall Canadian market — by a wide margin — over the past 16 years
  • Past performance does not guarantee future results
  • This analysis hasn’t changed my perspective; I still prefer diversification over raw performance…no FOMO for me.
  1. TD, CIBC, Bank of Nova Scotia, RBC, BMO, National Bank ↩︎