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Tandia: 4.50% for a 5-year GIC
May 26, 2022
1:09 am
RetirEd
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They might have done better, but I never bought any. Credit Union shares don't trade on open markets like bank shares and I didn't have the stomach for the open market.
RetirEd

May 28, 2022
4:58 pm
NCC1701Z
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When I retired in the early 2000's Bell was paying 10% on 30 yr bonds. I regret not buying every day 🙂

May 28, 2022
6:16 pm
COIN
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NCC1701Z said
When I retired in the early 2000's Bell was paying 10% on 30 yr bonds. I regret not buying every day 🙂  

Yes, but you could have bought BCE shares in the early 2000's at $xx. Hopefully, the dividends and capital appreciation are greater than the 10%.

May 28, 2022
6:49 pm
Norman1
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If we look after BCE distributed its Nortel shares in May 2000, BCE shares closed Thu, June 1, 2000 at $34.70.

The annual dividend then was $1.20. Yield on cost was $1.20 / $34.70 = 3.5% per annum.

Annual dividend is now $3.68. Yield on the cost is now $3.68 / $34.70 = 10.61%.

BCE shares closed yesterday at $68.82 for a 98% capital gain.

May 28, 2022
10:01 pm
NCC1701Z
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I still have some BCE I purchased back in 2001ish 🙂 no DRIP though

May 29, 2022
4:46 am
savemoresaveoften
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Norman1 said
If we look after BCE distributed its Nortel shares in May 2000, BCE shares closed Thu, June 1, 2000 at $34.70.

The annual dividend then was $1.20. Yield on cost was $1.20 / $34.70 = 3.5% per annum.

Annual dividend is now $3.68. Yield on the cost is now $3.68 / $34.70 = 10.61%.

BCE shares closed yesterday at $68.82 for a 98% capital gain.  

And if you look at Cad banks, its prob much much juicier too !

The morale of the story is GIC is only one form of savings, you sacrifice a higher return in exchange for piece of mind. Blue chip equities is a better form of "savings", you take some risk, but you get rewarded !

One cant just want the best without sacrificing anything else. Its called risk / reward, you dont play you dont win !

May 29, 2022
4:48 am
savemoresaveoften
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NCC1701Z said
I still have some BCE I purchased back in 2001ish 🙂 no DRIP though  

same here, and bot more when Teachers abandoned their take over attempt in 2009 during the crash. Teachers sold into the hole....

May 29, 2022
7:07 am
COIN
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I still remember President Reagan's investment advice.

1/3 in equities
1/3 in real estate
1/3 in fixed income, and
1/3 in cash

May 29, 2022
9:11 am
AllanB
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Great discussion on wealth generated for BCE shareholders. All the more reason to tax capital gains at 100% not 50 and get rid of the dividend tax credit. The alternative is to stop subsidizing markets with low interest rates.

May 29, 2022
10:34 am
COIN
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AllanB said
Great discussion on wealth generated for BCE shareholders. All the more reason to tax capital gains at 100% not 50 and get rid of the dividend tax credit. The alternative is to stop subsidizing markets with low interest rates.  

Taxing capital gains at 50% is to encourage people to invest in businesses that provide employment and create wealth.

The dividend tax credit is call "integration". To minimize the effect of taxing the same income twice, once at the corporate level and again when that same taxed income is distributed to the shareholders.

May 29, 2022
10:48 am
TommyT
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Re: It appears to me that currently Tandia is the leader of the rate pack.

Sometimes a high rate may not be a good sign.

Basically its all based on a real estate crash in Ontario. EQ bank would be the first to go followed by the credit unions. What Buffett does with Home Capital I don't know. I'm just saying with 100 percent certainty EQ bank would be the first to fail.

May 29, 2022
1:48 pm
FastJonny
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TommyT said

Basically its all based on a real estate crash in Ontario. EQ bank would be the first to go followed by the credit unions. What Buffett does with Home Capital I don't know. I'm just saying with 100 percent certainty EQ bank would be the first to fail.  

I'll bite.
TommyT, can you tell us why you believe EQ Bank will be the first to fail?
What do you define as a real estate 'crash'? that would precipitate this.

May 29, 2022
1:55 pm
Loonie
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COIN said

Taxing capital gains at 50% is to encourage people to invest in businesses that provide employment and create wealth.

The dividend tax credit is call "integration". To minimize the effect of taxing the same income twice, once at the corporate level and again when that same taxed income is distributed to the shareholders.  

Yes, that's the theory.
However, if the dividends and capital gainsare gained in an RSP or RIF, the government has no difficulty taxing them at full rate on withdrawal. So, conclusion is, they can tax dividends and capital gains differently if they want to.

May 29, 2022
2:58 pm
COIN
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"So, conclusion is, they can tax dividends and capital gains differently if they want to."

Governments basically have unlimited taxing powers. They can also introduce a wealth tax, a home equity tax and re-introduce an estate tax.

May 29, 2022
6:11 pm
savemoresaveoften
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AllanB said
Great discussion on wealth generated for BCE shareholders. All the more reason to tax capital gains at 100% not 50 and get rid of the dividend tax credit. The alternative is to stop subsidizing markets with low interest rates.  

I support the exact opposite: capital gain to be 100% tax free. Make up the tax shortfall by taxing GIC interest 3x the rate that employment income tax rates are. If someone has savings that earn interest, they should pay the most…

May 29, 2022
6:29 pm
Bill
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Hopefully no politicians are reading this stuff, lots of ideas for new gov't revenue streams! (Here's another one: NYC residents pay a 3rd, municipal income tax, on top of the federal and state income taxes, along with all their other taxes.)

May 29, 2022
6:32 pm
COIN
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"Here's another one: NYC residents pay a 3rd, municipal income tax, on top of the federal and state income taxes, along with all their other taxes."

That explains why some (many?) people who work in NYC live in New Jersey or Greenwich.

May 29, 2022
6:55 pm
AllanB
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Bill said
Here's another one: NYC residents pay a 3rd, municipal income tax, on top of the federal and state income taxes, along with all their other taxes.)  

Incredible they printed trillions there and hundreds of billions here and yet they still don't have enough.

COIN said

Taxing capital gains at 50% is to encourage people to invest in businesses that provide employment and create wealth.

By lending GIC investors also invest in businesses that provide employment and create wealth.

May 30, 2022
10:33 am
COIN
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Looks like these are Tandia's new rates.

13 months 2.50%

30 months 3.90%

1 year 2.00%

18 months 3.15 %

2 years 3.00%

3 years 4.00%

4 years 4.10%

5 years 4.20%

June 17, 2022
12:04 pm
JenE
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