April 6, 2013
…With all the new and/or scammy products being invented and marketed, and high-pressure tactics used at the Big Banks, there's no way most of us can keep up - let alone the average financial semi-literate.
The recent explosion over series A/series F trailer fees is an outstanding example of what few people understood when they faced a financial "adviser" (high-pressure salesthing) chanting "STAY THE COURSE!" endlessly.
There's no justification for our financial system being organized on a "harvesting of fools" basis.
It is not organized that way. But, it ends up being so because of "fools" who spend more time shopping for a $1,000 fridge than they do on investing their $10,000 RRSP contribution.
It is also because of "fools" who want someone to help make them money for free! As a result, the investment industry found ways to indulge that fantasy by hiding the costs. I remember when those back-end load mutual funds were introduced in Canada and what a hit they were.
"Foolish" enough to believe one can draw 6% each year in retirement income and not run out of money? There are products now to indulge that fantasy too! For example, those Class T6 units of some CIBC "managed portfolios".
March 30, 2017
Have you tried that advice out on someone with dementia, imperfect vision or hearing, or just not as smart, educated and worldly-wise as you? There are lots of us out there.
One has to educate oneself and not rely on others when it comes to personal finance. There is no way around it. When one chooses to spend their time and watch netflix instead of googling how each investment product works and learn, who is to blame. For example, the past Sunday I spent most of the day to follow the news and read up on the Credit Suisse development and what are AT1 bond, etc. All are from public news feed and the like. Its really a personal choice whether one wants to learn or not. I bet you most of the financial advisors do NOT follow the news closely. Yet one would trust them 100% with one's hard earned money ?! For disclosure, I am just an early retiree managing my own money these days.
I will also add "People who cries foul" and use "I dont know, I am dumb" as an excuse should learn to own up on one's action.
September 11, 2013
Some believe their financial safeguarding is someone else's responsibility, some believe it's their own responsibility (for those who are incapable yet somehow still have money to invest that's what POAs, friends, trusted advisers, etc are for), never the twain will meet so no point even going down that road here. In my view.
October 21, 2013
It seems it's easy for some to pass harsh judgments on people whose situations they don't understand or want to know about. Everything is all very cut and dried when viewed from a remote position of safety.
All the POAs , trusted friends, and so on matter not a whit when you start losing mental capacity but can't be convinced of it and doctor doesn't want to say in writing that you are incompetent.
You are at the mercy of whatever charlatan comes along, including but not limited to: those nice people at your Bank whom you've known for years who have now put your money into a fund where it will earn more; the guy who knocked on your door who said he could lower your bills if you'd just let him look at your water heater (and then asked to use your washroom, ate the snack you offered and said he'd be back soon); the fellow who called from CRA saying your account was in a crisis situation but the line wasn't clear so you pretended to understand and did as he asked as you didn't want to be difficult (but you wondered why the phone said he was calling from London, England? was it my nephew?); and the nice person you met at Bingo who took you out for a coffee and helped you with your bank statements, which are getting harder to read .
You didn't want to bother your friends, children, etc., because you were sure you knew what you were doing. You're not a child and you didn't like your daughter second guessing you all the time; in fact, you got the locks on the door changed so she couldn't go snooping around. You're thinking about changing your POA to the fellow from Bingo. etc etc.
All this, and much more; scenes from real life.
Yea, I know, it'll never happen to you.
May 24, 2016
November 18, 2017
I'm not characterizing our financial system as "harvesting of fools" - I'm saying we shouldn't make it so. Requiring clarity and completeness in disclosure helps those who need to inform and educate themselves do so.
So I'm glad to have those details to read. And I like to attend Co-op AGMs in person because I'm not just limited to their issued statements; I can hear what other members are concerned (or gratified) by, and their questions to the officials often reveal a great deal. (It was at an AGM that an irate member revealed huge losses unreported as yet in the financial statements once.)
And of course, one can buttonhole some officials and make direct contact. And video AGMs never provide food.
October 5, 2017
October 5, 2017
Just received this reply from CIBC via Canada post.
"We are writing to let you know that we are not going ahead with these changes at this time. No action is requires on your part."
Signed by a senior Vice President.
I had planned to cashout and find a better rate for 5 years , no such luck now and will remain locked in for the duration of my term.
May 25, 2017
@bhuc Did you try escalating through the branch? Banks don't rescind fee increases when they change their t&c and customers wan't to leave... Just saying, either CIBC's lawyers are jokers or the bank needs to be accountable for this gaffe and compensate customers by either allowing them to withdraw their gic's without cost or renew their GIC's for the remaining duration with a higher rate of interest.
October 27, 2023
I bought a 6 figure , 5 year GIC at 4.0 % in March of 2022 at CIBC.
Since CIBC has now given me the option of declining their changes to the terms and conditions of my personal non registered GIC , I will be able to redeem the full amount plus prorated interest as of April 16, 2023.
I intend to move the money to an FI that has given me a 45 day rate hold of 4.5% for a 5 year term.
If anyone wants out of their GIC with CIBC then this is their opportunity !
But one only has 30 days to exercise this offer because after 30 days you have consented to the changes and you are locked into the remaining rate and term !
After reading the letter, and asking my CIBC FA about it at least 4 times with zero explanations and clarifications, and denials that she even knows about the letter, I wrote CIBC FA again, and said I want to close my GIC as the letter stated we can from April 16th to May 15th. Since I was going to be away on a shoot, from April 1st for two months, I inquired about redeeming it. The FA sent me a Secure Email, saying that I need to request it there. So I did, I requested it to be redeemed on May 15th, to earn interest while I was away, and to be deposited to my checking account.
When I got back from my trip, the FA lied and said she never received my request. I have contacted others in the bank, and they all are giving me the runaround, and giving me other lies. I think this should be made public, and addressed. The bank is behaving unethically in many ways ( I have copies of emails, showing their lies) and most likely illegally. They wanted to be able to unilaterally change the terms. And they allowed us to redeem our GIC's early if we didn't agree. Now, they are denying that I even requested it.
BHUC, were you able to close down your GIC as they stated? May I contact you directly? I'm not familiar with this forum and how it works, and can't see any direct link to posters.