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New member first post ruralsuite
November 30, 2021
7:53 pm
ruralsuite
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November 30, 2021
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Just the site I've been looking for with focus on fixed income investment instruments. I've been very bearish all through the last 10 years! ie strongest bull market ever and I sat it out. No matter, can talk more about why later.
Now very liquid and would like to learn about deposit brokers, GIC brokers. I have to set up a 5yr ladder and most of funds are sitting in savings acct earning squat.
After lurking a bit I realize my worldview is far far to the eco-left, ie contrary to my dad quoting the 'mirage of compound interest', I'm persuaded its really the debacle of same. Can't have compound growth on a finite planet, can we?

November 30, 2021
10:24 pm
Loonie
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Welcome to the forum!

I don't understand your last paragraph. Can you re-state?

Deposit brokers are the same as GIC brokers. From time to time, they offer rates that are better than those of other financial institutions that we follow, sometimes through the same institutions! If you've ever dealt with an insurance broker or a mortgage broker, deposit brokers work on similar principle. They make arrangements with a number of financial institutions (FIs) to raise money in deposits form people like us. Some of them are relatively obscure, but they are normally all covered by either CDIC or provincial insurance, up to stated limits. So, apart form providing good rates, this route also provides more institutional diversification and thus more insurance coverage. The deposit broker makes all the arrangements for you; you just provide the money and sign forms. Normally, wen the GIC matures, they will contact you to find out what you want to do with it and will tell you what they can offer if you want to renew.
Deposit brokers typically require a minimum deposit of between 25,000 and 100,000 per GIC.

November 30, 2021
11:07 pm
Norman1
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An earlier thread "GIC Simple" - offers a whole range of GIC's… also discusses deposit brokers and has background about how they work.

December 1, 2021
5:23 am
ruralsuite
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Last para, Loonie, was to say I have very untypical capitalist worldviews. As in the present system is broken and broke, either it gets rejigged from the ground up (not going to happen,imo) or we suffer a lot of unintended consequences deriving at source from the belief in infinite growth or compound interest. that's all.

December 1, 2021
1:06 pm
RetirEd
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Money can grow indefinitely. It is not a resource that can be used up or a waste product that accumulates negatively. (Subject to limits of demand-driven inflation, perhaps.)

But it's mostly PEOPLE that we have to control the numbers of!
RetirEd

December 1, 2021
4:00 pm
Bill
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You've got it, RetirEd, that's the key, and the first thing people do when capitalism lifts them out of poverty is reduce family size. And women get increasingly liberated as wealth rises, again resulting in lower birth rate.

December 1, 2021
5:01 pm
Loonie
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ruralsuite said
Last para, Loonie, was to say I have very untypical capitalist worldviews. As in the present system is broken and broke, either it gets rejigged from the ground up (not going to happen,imo) or we suffer a lot of unintended consequences deriving at source from the belief in infinite growth or compound interest. that's all.  

I see, I think. I understand the bit about growth anyway. Many have written about that, and the necessity of reconfigurations, but the likely modifications will be so minor as to not fix the problem IMO.
But I don't think there is anything useful I can say in that regard here.

Not sure what you meant about compound interest. However, if it's not something you want feedback on, then you needn't try to explain.

Would it be fair to say that your challenge is to figure out how to survive financially in an environment (economic and otherwise) which you think is basically falling apart in various ways and not likely to get fixed? It helps to have a sense of what you are trying to accomplish if we offer advice. But this is not the place to argue whether your analysis is correct as that is a never-ending argument and very complex.

In any event, it sound like you have settled on GICs, so we should focus on that.

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