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At what rate would you re-allocate the majority of your portfolio to fixed income?
June 12, 2022
10:11 am
TommyT
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At 2 percent interest.

June 12, 2022
10:41 am
gicbits
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I would be happy with 5.5% locked in for 1 year.

June 12, 2022
11:15 am
TommyT
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NCC1701Z said

Inflation has far less impact on us retirees. We usually have our houses and major assets paid off. We consume less, will have less time to worry about inflation and a good part of our income is indexed (CPP/OAS). I've been retired 21 years and honestly have not noticed any significant impact from inflation.  

Speak for yourself. I have two pensions that are fixed and pay the same amount for life at age 70. Inflation will eat the both of them alive.

June 12, 2022
1:00 pm
NCC1701Z
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TommyT said

Speak for yourself. I have two pensions that are fixed and pay the same amount for life at age 70. Inflation will eat the both of them alive.  

We have zero pensions, not worried about inflation at all. I guess it depends on your lifestyle and portfolio size. Only items that have gone up noticeably are groceries and property taxes. We don't pay our taxes and shop sales so that has little impact.

June 12, 2022
1:01 pm
NCC1701Z
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TommyT said

GIC's are not insured for periods of time longer than 5 years.  

Not true

https://www.cdic.ca/your-coverage/changes-to-cdic-deposit-protection/

June 13, 2022
7:24 am
TommyT
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AllanB said
I won't do 5yr Gic again stability is gone too much can happen between now and then. Locking in for 10yrs is crazy to me. The only way I'd do 5 is if the rate was incredible, or it was cashable with less interest or without. I'd have to have a hatch. I feel they're trying to normalize the 10yr on here there are newbies who may not understand the implications. I don't.  

I still haven't found one single link on the internet saying 10 year GIC's are insured by CDIC. Even on the CDIC site is doesn't show any details only heresy. Does anyone have a concrete link showing 10 year GIC's are covered by CDIC?

June 13, 2022
8:14 am
lifeonanisland
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https://www.cdic.ca/your-coverage/faqs/#changes-q6

What were the changes to the coverage of term deposits?

Effective April 30, 2020, term deposits of more than five years are eligible for CDIC protection. The five-year term limit has been removed. Keep in mind that the deposits with terms of over five years would not receive separate coverage but would be combined with other deposits within the same category.

June 13, 2022
8:22 am
AltaRed
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The language is that effective Apr 30, 2022, term deposits greater than 5 years are covered, e.g. per FAQ here https://www.cdic.ca/your-coverage/protecting-your-deposit/term-deposits/

June 13, 2022
9:06 am
Norman1
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The legislative amendment to the CDIC Act is in section 2(2) of the act's Schedule.

Before:

Excluding moneys

2(2) The following moneys are excluded from the moneys referred to in subsection (1) [the definition of deposit]:

(a) moneys received or held by the institution if the date of deposit is or was on or after April 17, 1967 unless the institution is or was obligated, or may by the demand of that person become obligated, to repay the moneys on or before the expiration of five years after the date of the deposit; and

(b) moneys held by the institution that were received by it when it was not a federal institution, a provincial institution or a local cooperative credit society.

Now, after 2(2)(a) is deleted:

Excluding moneys

2(2) Moneys held by the institution that were received by it when it was not a federal institution, a provincial institution or a local cooperative credit society are excluded from the moneys referred to in subsection (1).

June 19, 2022
6:50 pm
RetirEd
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TommyT:

Even on the CDIC site is doesn't show any details only heresy.

I think you mean "hearsay," not "heresy."

I assume that "is doesn't show" is just a typo for "IT doesn't show."

But it does, in the second-last table entry on:

https://www.cdic.ca/your-coverage/changes-to-cdic-deposit-protection/

RetirEd

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