Update – New Job and My Dividend Investments

I just spent the last few hours filling out a bunch of forms for my new pension plan and investment accounts that are part of the package at my new job. As discussed in this post, I receive a pension account and an Employee Stock Purchase Plan – which can be either an RSP or regular Cash account, or both.

Here is how I have it set up at this point:

1. Pension- my 2% pension contribution and my employer’s 4% pension contribution is going to be directed to the CC&L Group Bond Segregated Fund. I am using this as a vehicle to bump up my low fixed income component of my asset allocation. Once this is built up a bit and my asset allocation is better in line, I will more than likely sell my iUnits Canadian Bond Broad Market Index Fund and use this pension fund as my primary fixed income component.

2. ESPP – I need to actually direct the money using the company’s benefits and savings plan online tool, but my plan is as follows:

-> 5% of my salary to Company shares into a regular investment account (non-RSP) – this is mandatory
-> 5% employer match used to purchase the ScotiaMcLeod Money Market Fund in a regular investment account
-> On a regular basis, withdraw the cash from this account and deposit it into my CSA RSP and/or cash account to purchase dividend paying investments

The reason for transferring the money out of the company account is that the brokerage house the company provides is a full service firm – and thus charges full fees. We do receive some breaks on commissions, but it is still expensive. To keep my costs low, I believe I need to manage the account this way. This may change depending on what I hear from the company at my orientation.