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National Post online GIC Rate Guide listing
January 9, 2016
12:58 pm
Norman1
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Loonie said
...
The other possibility, especially for the non-registered funds, is annuities, but this is a bad time to buy them (although could get worse!) and I think we are not old enough yet for this to be a good deal, so would postpone that to 70+.
....

Life annuities have never been good investments, even when interest rates were much higher. But, that's not what they are for.

Life annuities are for addressing one's longevity risk, the risk of outliving one's money. They were, and continue to be, excellent for that purpose. If one pays more to buy one with escalating payments, then there will be some offset for inflation risk.

January 9, 2016
1:17 pm
AltaRed
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Loonie said

For what it's worth, I knew someone who got their money back from CDIC in the 1970s when one of the trust companies went under. It took a few months but it came on its own.

It was seamless for me circa early 1980's when Principal Trust in Alberta went broke. The very next month, my RRSP statement looked different with a different company name at the top. CDIC gets another company to take over deposits.

I simply would not worry about anything CDIC insured. They have done many of these things over the years when trust companies in particular were imploding.

January 9, 2016
1:18 pm
Norman1
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Loonie said

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It's hard to be one's own financial planner, having no professional background in it and knowing that most people make decisions they later regret. But, still, I have even less faith in most of the financial planning industry! All the advice says it's essential to find someone you "trust" and "feel comfortable with" but I have never found one who meets these criteria. They all have faith in something that I don't share. The only way they can make good money off me is if they are wealth managers who charge an overall fee, but with those people you have no say in the investment decisions but it still costs you 1%+ annually, which is an awful lot in this climate. And, amazingly (to me), there is no quality control or guarantee whatsoever. If they fail, well, too bad for me. I can't think of any other business that operates this way. In my view, compensation should be linked to benchmarks and returns. If they're going to say you're paying for the advice, as they do, then there needs to be some measure of quality of the advice, but I have never heard of any yet.
....

From what I can see, most of the self-described "financial planning" industry is not actual financial planning. Instead, they are the financial product salespeople trying to sell product with a sales pitch that includes financial planning buzz.

Keep in mind that real financial planning is not the same thing as investment management or investment counseling. It is not likely one will find both in the same person.

Financial planning is not about picking stocks, bonds, or mutual funds. Financial planning is about determining what one needs financially to reach one's goals.

Maybe one is lucky: The financial planning finds that one can reach one's goals with a return of ½% per annum. In that case, be happy and forget about stocks and mutual funds.

Maybe one gets a wake up call instead: The financial planning finds that one can only reach one's goals with a return of at least 21% per annum. sf-surprised In that case, what particular stocks or mutual funds to buy is irrelevant. A sustained 22% per annum return these days from investments is unrealistic.

January 25, 2016
4:36 pm
Miron
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I am looking to transfer my RRSP from a High Savings Account into a GIC that is offering a better interest. The best offer I get from the present institution (Outlook Financial) is 2.4% for a 5 years GIC which is not so bad. Looking around I just discovered that Duca Credit Union is offering 3% for a GIC of 80 months. I would have to pay $50 transfer fee but the difference would be compensated in less than a year.

Outlook does not have any branches where I live and any transfers (especially withdrawals) are very difficult... I don't like to visit banks but I also don't like to send letters to get my money moved around...

What do you think? Does anyone have any experience with this institution?
Are they user friendly? Do they have an easy to use on line banking?

Thank you :)

January 25, 2016
5:44 pm
semi-retired
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Hello Be careful with the 80 month term.CDIC insurance covers only up to 60 month terms MAX.Check which insurance your funds would be insured with Duca Credit Union with that extra long term. Charles.

January 25, 2016
6:00 pm
Bill
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Duca's in Ontario so coverage is under DICO. Here's the link to DICO where it tells you what the coverages are for various deposits.

https://www.dico.com/design/0_0_Eng.html

January 25, 2016
6:28 pm
Koogie
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Miron said

I am looking to transfer my RRSP from a High Savings Account into a GIC that is offering a better interest. The best offer I get from the present institution (Outlook Financial) is 2.4% for a 5 years GIC which is not so bad. :)

I have a GIC from DUCA but would be hesitant to take the 80 month offer. The term is simply to long. You are then taking on to much risk in the sense of possible inflation losses over a nearly 7 year commitment. It really only benefits DUCA.

Given the rate on offer from Outlook, you'd be better off taking the two year 2.5% GIC offer from ZAG Bank. You get a better rate, shorter term (and therefore the chance of renewing at a better rate sooner) and it is also CDIC insured. I have no problem with DICO coverage but CDIC is the gold standard.

January 25, 2016
6:37 pm
Miron
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Bill said

Duca's in Ontario so coverage is under DICO. Here's the link to DICO where it tells you what the coverages are for various deposits.

https://www.dico.com/design/0_0_Eng.html

Thank you very much, Bill!

DICO automatically insures all eligible Canadian deposits in each registered savings plan. Registered savings plans include registered retirement savings plans (RRSP), registered retirement income funds (RRIF), registered education savings plans (RESP), registered disability savings plans (RDSP), Life Income Fund (LIF), Locked-in Retirement Account (LIRA), Locked-in Retirement Income Fund (LRIF) and Tax Free Savings Accounts (TFSA).

Your deposits are automatically insured up to the $100,000 limit (unlimited for deposits in registered plans)

So, all RRSP and TFSA are unlimited insured! Is this valid for CDIC insurance too?
There is no word about the lengths of the term...

January 25, 2016
7:01 pm
Miron
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Koogie said

I have a GIC from DUCA but would be hesitant to take the 80 month offer. The term is simply to long. You are then taking on to much risk in the sense of possible inflation losses over a nearly 7 year commitment. It really only benefits DUCA.

Given the rate on offer from Outlook, you'd be better off taking the two year 2.5% GIC offer from ZAG Bank. You get a better rate, shorter term (and therefore the chance of renewing at a better rate sooner) and it is also CDIC insured. I have no problem with DICO coverage but CDIC is the gold standard.

I am waiting since 2008-2010 for the rates to go back to the previous rates of 4 and more than 4% and as you see, they keep going down so I am not expecting them to go too soon over 3%... the inflation would affect any rate, right? If the inflation is going up, would they increase the interest rates? I know 7 years is a long term but if I change my mind I can take the money out with 2% interest.

Cashable after 12 months at 2.00%. Available in RRSP, TFSA and RRIF plans.

I also notice that Duca was founded in 1954... who is ZAG Bank? Pretty new if I recall well...

I still need to check more options but for now, DUCA is number one...

January 25, 2016
8:07 pm
Bill
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Here's what's covered under CDIC. CDIC does not have different coverage limits for registered deposits. Also no coverage for GICs > 5 years, DICO appears not to care about length of GIC term.

http://www.cdic.ca/en/about-di.....fault.aspx

January 26, 2016
5:41 am
Miron
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Bill said

Here's what's covered under CDIC. CDIC does not have different coverage limits for registered deposits. Also no coverage for GICs > 5 years, DICO appears not to care about length of GIC term.

http://www.cdic.ca/en/about-di.....fault.aspx

Wow, that means DICO is much better... I don't care too much as my amounts are far away from the limits but I am sure that it's making a big difference for others.

It makes sense to me that Registered accounts are insured regardless amounts and length!

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