$150K CDIC Insurance ? | Page 5 | General financial discussion | Discussion forum

I've read almost half of Canadians age 55 - 64 have less than $5k in savings, 75% have less than $100K. And around me I hear complaining about how nobody has any savings, life is so expensive these days, etc.

CDIC limits affect virtually no-one, it's not anyone's priority to increase them. And for the few it affects there are plenty of banks, etc to spread their money around, it's not a problem.

I would support a targeted CDIC increase to retirement plan deposits, there are a few people who have RRSPs or RRIFs with one institution with which they purchase GICs, those retirement funds should be protected at higher levels as it seems unreasonable to expect such super risk-averse people to have a number of plans at different institutions to stay under the limit.

Canadians who have significant excess money invest in non-insured vehicles like ETFs, mutual funds, stocks, real estate, etc. Aside from the few on here and maybe a few more people. I see no need for a general increase.

CDIC is funded by member institutions, they will recoup any additional CDIC costs from their customers, though I assume they're not likely to be material.

I've read almost half of Canadians age 55 - 64 have less than $5k in savings, 75% have less than $100K. And around me I hear complaining about how nobody has any savings, life is so expensive these days, etc.

o Just out of curiosity, where did you see those statistics?

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CDIC limits affect virtually no-one, it's not anyone's priority to increase them. And for the few it affects there are plenty of banks, etc to spread their money around, it's not a problem.

o It’s a problem for any one with money that doesn’t use an advisor or doesn’t use a brokerage agency.

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I would support a targeted CDIC increase to retirement plan deposits, there are a few people who have RRSPs or RRIFs with one institution with which they purchase GICs, those retirement funds should be protected at higher levels as it seems unreasonable to expect such super risk-averse people to have a number of plans at different institutions to stay under the limit.

o Out of curiosity where did you get that statistic from? While I have no idea what the younger folks do RRSP vs TFSAs, why would you not include TFSA?

o And the higher the CDIC coverage the less FI’s are required.

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Canadians who have significant excess money invest in non-insured vehicles like ETFs, mutual funds, stocks, real estate, etc. Aside from the few on here and maybe a few more people. I see no need for a general increase.

o I totally disagree.

Here’s another article regarding the wealth of a senior in Canada . See first paragraph. And there are some other good points. I wouldn’t be bothered with opening any of the links though.

The StatsCan data does include the equity value of one's home. https://www150.statcan.gc.ca/n1/pub/11-627-m/11-627-m2024047-eng.htm

Virtually no one in Canada requires CDIC insurance coverage to $150k since virtually no one has insurable deposits anywhere close to that value. The StatsCan table demonstrates that well. That said, the CDIC paper did lean to moving towards moving to $150k due partly to inflation and what some other countries are doing, or have already done.

It may be more important to have more unlimited coverage for registered assets which CDIC also is considering, and short term, e.g. 6 months, coverage of maybe $1M for funds passing through accounts, e.g. house sale proceeds and inheritance disbursements.

Bill said
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Until I started following this site I had never met anyone who put 100% of their substantial savings into GICs and high interest savings accounts, I did not know such people existed, so I guess I am extrapolating from my personal experience and assuming they are few and far between. Even on this site, out of all the people on earth there are what, about 30 or so regulars on here.  

I doubt there is anyone on this site who puts 100% of their savings into GICs.

For me, it's a cash wedge strategy that helps me sleep soundly as the stock market keeps bubbling along and the majority of my investments go up and down. That wedge, and having a LIRA invested at 5.1% through 2027, constitute less than a third of my assets. If it wasn't for this site, I might never have found that safe harbour for my LIRA funds. I've made tens of thousands in additional interest thanks to the GICs identified and ranked here.

Bill said
But you'd lose the bet that there aren't people on here that are 100% into gics and/or HISA accounts, some have said so over the years I've been reading.  

I agree that I would have lost that bet too but have learned being on this site that is the case.

I know of no one in real life being 100% in deposit accounts of various types, with just a few exceptions being of the Greatest Generation (born 1901-1027) and experienced the Great Depression.

gicjunkie said

Most of my investments are in GICs and HISAs and there is a reason for it. It's not no risk, but it is low risk. My circumstances and age dictate a very low risk tolerance. I have been quite content to invest this way knowing my principal is reasonably well protected. It's called peace of mind. I earn enough interest to live on quite comfortably with leftovers to add to savings. Many would question the inflationary loss of this strategy, but I am secure enough not to be concerned by it. Read into that what you will.
I also would love to see an increase in the CDIC insurance limits. It's well overdue.  

Ditto and feelings very similar.

All GIC's Non Registered, RRIF, and TFSA.

And was also wondering if any one else does the same.
Non-registered - all joint (but may not depending on different situations)
RRIF - all with a successor (but may not depending on different situations)
TFSA - all with a successor (but may not depending on different situations)
All to go into an associated Savings Account at Maturity.*
*exceptions are Oaken RRIF
Most to pay out interest annually. **
**exceptions are Oaken Oaken RRIF and TFSA
I print a paper copy to reflect the information above ***
***Hubert does not show joint, successor or maturity instructions.
Prefer to deal with FI's that have an office in the lower mainland of B.C.

I like the accounts with no cheques, bill payments, no ATM card or e-transfer. As I feel is more secure of an account. Haven't spent the time to verify Oaken, Peoples or Hubert.
Hubert does have e-transfer. To enhance to avoid this.
And yes I have both sides of all accounts set up with alerts.

And suggestions to step up security like no cash (or a minimal %age) and use short term GIC's (or?) staggered at a rate same or higher than the HISA rate of the FI.