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August 5, 2019
7:08 pm
Bud
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how r u playin it 1-5yrs
what rates should we expect now and till year end

1?
2?
3?
5?

GIC King

August 5, 2019
8:45 pm
AltaRed
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Renew your 5 year GIC ladder on schedule. Guessing interest rates is a mug's game.

August 5, 2019
9:26 pm
gicjunkie
Ontario
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I totally agree. Get the best 5 year rate you can.

August 5, 2019
9:35 pm
Doug
British Columbia, Canada
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I'll be the contrarian here. With low rates for a longer period and the tendency for interest rate volatility at the short end, I would shorten my GIC ladder to 3 years, opting for the best 1-3 year GIC rates available, with the potential to throw in some 15- to 18-month GIC promos, on an equally weighted basis. I would avoid GIC terms of 4 years or longer.

Thus, if I had, say, $200,000 to put into GICs, I'd go:

$50,000 in a 1-year;
$50,000 in a 15-month (with Peoples Trust Company);
$50,000 in a 2 year; and,
$50,000 in a 3 year.

Cheers,
Doug

August 5, 2019
11:11 pm
Canadianbull
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For registered accounts
5 years with best rate

For non-registered accounts
Go with best rate for shorter time.

CB

August 6, 2019
7:57 am
AltaRed
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My GICs are all in my RRSP, soon to be a RRIF. I look for staggered maturities over 5 years to eventually feed my RRIF withdrawals. If I go short now, it means I am going to have to go short later to get back on the 5 year plan. The math almost never works.

August 6, 2019
1:03 pm
GICinvestor
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AltaRed, I guess your laddered RRSP GICs may be in different FIs and or/under multiple FIs in one brokerage or with an investment dealer. Much to my dismay, they all have different rules of where the mandatory RRIF withdrawals come from. You might want to check that out.

My RRSPs are not evenly laddered but when withdrawn they become fairly evenly laddered within my TFSA Account.

August 6, 2019
1:26 pm
Doug
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GICinvestor said
AltaRed, I guess your laddered RRSP GICs may be in different FIs and or/under multiple FIs in one brokerage or with an investment dealer. Much to my dismay, they all have different rules of where the mandatory RRIF withdrawals come from. You might want to check that out.

My RRSPs are not evenly laddered but when withdrawn they become fairly evenly laddered within my TFSA Account.  

I think AltaRed may have a couple different bank savings accounts held in his own name, but most of his GICs are as you suspect, in his self-directed discount brokerage accounts.

Cheers,
Doug

August 6, 2019
5:03 pm
GICinvestor
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Doug said

I think AltaRed may have a couple different bank savings accounts held in his own name, but most of his GICs are as you suspect, in his self-directed discount brokerage accounts.

Cheers,
Doug  

Was NOT my point. Some FIs have different methods for paying out mandatory RRIF. Which can affect ones GIC investing strategy. Methods should be questioned.

August 6, 2019
6:29 pm
AltaRed
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My GICs are indeed all in one discount brokerage account but from different issuers. I will have one GIC mature each year where the proceeds are enough to cover the minimum RRIF withdrawal. Rinse and repeat for 15-20 years.

August 6, 2019
6:38 pm
GICinvestor
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That’s what I did too. Ie I have a GIC ready for my first mandatory RRIF payment with Oaken. But their policy is to strip all interest first then dip into a GIC.

August 7, 2019
7:24 am
Koogie
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I have monkeyed around with my two ladders before when there have been tempting offers for odd numbered periods (ie: a 42 month special or a 50 month special). But when they matured, I went back to proper yearly rungs. It should be noted I am still (barely) in the accumulation phase.

As to guessing interest rates, nah. I've never been that lucky.

September 13, 2019
8:43 pm
Bud
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Looks like the gic market is comin back to life slowwly theres been a 5bps uptick at gic wealth and a cu directly is offering a bit over 3% for a bit under 3yrs was told. Apparently theyll throw in a bonus for larger sums. I'll post the name next week.

GIC King

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