Is there a guaranteed capital gain product that is not in TFSA or RRSP? | Page 5 | General financial discussion | Discussion forum

Please consider registering
guest

sp_LogInOut Log In sp_Registration Register

Register | Lost password?
Advanced Search

— Forum Scope —




— Match —





— Forum Options —





Minimum search word length is 3 characters - maximum search word length is 84 characters

No permission to create posts
sp_Feed Topic RSS sp_TopicIcon
Is there a guaranteed capital gain product that is not in TFSA or RRSP?
January 25, 2023
12:20 pm
savemoresaveoften
Member
Members
Forum Posts: 1892
Member Since:
March 30, 2017
sp_UserOfflineSmall Offline

@butterfly

How much $$$$ are u seriously looking to buy for the second hand GICs that u keep asking….or u just posting for the sake of posting…

Someone who is serious about it and have $$$$$ for it would have a private banker, instead of coming to a forum

January 25, 2023
12:35 pm
Lodown
Member
Members
Forum Posts: 69
Member Since:
January 10, 2017
sp_UserOfflineSmall Offline

Is it possible to start a "GIC club" wherein members sell GICs to each other at discounts, when appropriate, in order to realize Capital Gains? This might solve the problem of obtaining a source of GICs.

January 25, 2023
12:40 pm
butterflycharm
Member
Members
Forum Posts: 139
Member Since:
April 19, 2019
sp_UserOfflineSmall Offline

Lodown said
Is it possible to start a "GIC club" wherein members sell GICs to each other at discounts, when appropriate, in order to realize Capital Gains? This might solve the problem of obtaining a source of GICs.  

sf-laugh

Wouldn't some rule from CRA apply where an asset is sold at much lower value than it should be like the black book that MTO uses? There is always an element of cash transferred that is not by the rules in cases like this.

But yes, there is probably a market for 2nd hand GICs. There should be as there is more room for saturation of rates. The big gap in GIC rates from different FIs is probably because such a system is not available.

Most FIs say their GICs are NOT TRANSFERABLE so such market may be unprofitable to run.

January 25, 2023
2:00 pm
Bill
Member
Members
Forum Posts: 3491
Member Since:
September 11, 2013
sp_UserOfflineSmall Offline

CRA generally has nothing to say re value if asset transferred at arm's length.

January 25, 2023
5:55 pm
Bill
Member
Members
Forum Posts: 3491
Member Since:
September 11, 2013
sp_UserOfflineSmall Offline

Ok, I can see that sell button might just be for redeemable GICs. Same thing in RBC Dir Inv, I found one non-redeemable GIC I hold with a sell button too but it said outside of trading hours now and a phone number to call.

It's possible the person I'm familiar with a couple of years ago was provided special accommodation by Investors Edge, unexpected cash need of a client with a relatively active portfolio, so maybe it was a one-off. I assumed they found a way to unload the GICs to other buyers, or maybe the issuers took them back from the broker as a goodwill gesture, so it's true, it's possible there's almost no market for these types of transactions generally. Guess you'll have stick to discounted bonds, achieve the same thing pretty much.

January 25, 2023
6:05 pm
Lodown
Member
Members
Forum Posts: 69
Member Since:
January 10, 2017
sp_UserOfflineSmall Offline

butterflycharm said

sf-laugh

Wouldn't some rule from CRA apply where an asset is sold at much lower value than it should be like the black book that MTO uses? There is always an element of cash transferred that is not by the rules in cases like this.

  

No. As stated, It would only be done when appropriate. That is when current rates are higher than the interest rate on the GIC being sold. To continue with a previous example, and assuming we each have the exact same GIC (rate and term), I would sell you my $20,000 two-year GIC for $18,884.35 and you would sell me your $20,000 two-year GIC for $18,884.35. We both end up in the same place, except we each will have Capital Gains upon expiry of the GICs.

No permission to create posts

Please write your comments in the forum.