Consolidating means bringing all your savings together in one place, and there are many advantages to doing so!
Are there any fees for transferring my investments? Why consolidate, given that we’re often told not to put all our eggs in one basket? How do I transfer my accounts to Bâtirente? Here are answers to the questions you’ve been asking us on this topic.
Are there advantages to consolidating my assets with Bâtirente?
Yes! At Bâtirente, the fee rate you pay gradually decreases as your group’s assets grow, and paying lower fees means more money left for your own projects. This privilege is made possible by the pooled savings offered to our working or retired members as well as their spouses. In 2020, this progressive fee rate brought our members discounts of more than $6.5M.
How can I learn about the fees related to my Bâtirente plan?
You can find this information in the MY ACCOUNT secure section as well as on your quarterly statement under the Investments available for your plan section. All fees paid are shown there, expressed as a percentage.
I consolidated my RRSP assets with Bâtirente. Should I do the same thing with my TFSA?
Yes. Bâtirente’s fees are the same for all types of plans within the same group. An investment in Bâtirente’s TFSA therefore benefits from the same cost savings as an RRSP or another plan. You need to verify beforehand whether your investment is redeemable at any time or at a fixed date.
Since a TFSA is not an investment that pays, why transfer it?
Actually, it’sIt’s not the plan type (TFSA or RRSP) that determines how well your investments perform but, rather, the investment type chosen. If your TFSA offers very weak performance, this is most probably because it is invested in a savings account and is redeemable at any time. By choosing the same investment funds as those in your pension plan, you benefit thereby from the same performance for all your plans.
I’m a member of Bâtirente, but my spouse is not. Can they become a member?
Yes. We can open an account for them in your Bâtirente group that offers them the same advantages as you, at the same management fee rate for all plans (RRSP, TFSA, or LIRA).
Are there any fees for transferring my investments to Bâtirente?
That depends on the institution where your investments are held. Financial institutions charge between $50 and $100 per plan transferred. However, these fees are minimal compared to the long-term savings you will realize with your Bâtirente group plan. Depending on your group’s management fee rate, you could save up to 2% annually in fees on your investment balance. For example, if you have $100,000 in an RRSP at another financial institution with a management fee rate of 2.5%, but that rate is only 1% for your Bâtirente group, then you save $1,500 per year. That’s more money for your own projects or for your retirement!
Does Bâtirente reimburse these expenses?
No. Bâtirente’s management fee policy does not provide for the reimbursement of these expenses. However, the above calculation shows that the savings achieved through the reduced fee rate fully offset the costs associated with the transfer—-often even within a few months. Moreover, you don’t pay this amount in cash, sincecash since the fee will be deducted from the interest you will have earned on the investment in question.
Why consolidate, given that we’re often told not to put all our eggs in one basket?
This is indeed a common expression! But the idea here refers to diversification of portfolio, not of financial institutions. Bâtirente has been a strong, responsible institution for nearly 35 years and has the interest of its members at heart. What’s more, we work with leading portfolio managers with whom we’ve designed five diversified Funds that have proven their ability to weather the toughest market periods.
How do I transfer my accounts to Bâtirente?
Just fill out a transfer form. The Member Services Centre can support you in this process. To speak to an agent, call 1 800-463-6984, from 8 a.m. to 8 p.m., Monday through Friday. Note that if you have not already joined Bâtirente, you should start by doing so.