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Any recommendations for RIF providers?
May 19, 2022
1:10 pm
frugal lady
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Have to convert RSP to RIF by year end. Have some RSP funds with Hubert but they sure are lagging behind on GIC rates. So far in searching for another RIF provider I have found that:
1. Oaken - no registered RIF savings accounts (why not??) but do offer RIF GIC's
2. EQ Bank, Motive, Peoples Trust, and Wealth One - offer no RIF accounts
3. Tangerine - does offer RIF savings (.15%) and GIC's - $50 transfer out fee
4. Hubert - RIF savings and GIC's - no transfer out fee - I like the way they handle the minimum withdrawal yearly.

My hunt continues. Any recommendations or pros/cons for others?

May 19, 2022
1:21 pm
COIN
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Why the interest in a savings account? Why not just roll the money into another GIC? Are you concerned about having cash to meet the annual mandatory minimum payout?

May 19, 2022
1:34 pm
frugal lady
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COIN said
Why the interest in a savings account? Why not just roll the money into another GIC? Are you concerned about having cash to meet the annual mandatory minimum payout?  

Havings the savings account just makes things a lot easier in my opinion. Can roll maturing GIC's into it, and purchase new GIC's when perhaps rates have increased in a few more months, can transfer other FI funds into savings. Can keep funds in savings to meet annual withdrawal, without taking $$ from a GIC at a higher interest rate, etc

May 19, 2022
1:35 pm
mechone
Ontario
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Outlook others RRIF, Rates should go up June 1St with another rate increase

May 19, 2022
1:55 pm
Bill
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I don't get it, why would a $50 or $100 transfer out fee be an important factor to consider re where to have a RRIF?

May 19, 2022
2:54 pm
frugal lady
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Bill said
I don't get it, why would a $50 or $100 transfer out fee be an important factor to consider re where to have a RRIF?  

Transfer fee is not an important factor, just summarizing differences between FI's when I see it.

May 19, 2022
6:55 pm
Alexandra
British Columbia
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Canadian Western Bank has RIF's. They are pretty competitive. They have RIF savings I believe as well. Also, I think once you have a RIF with them, Motive will let you transfer over the RIF to them. That is what they told me on the phone anyway. I have been considering it. I also have RIF's with Oaken (Home Bank), and, as you say the don't have the savings account.

May 19, 2022
8:10 pm
COIN
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Warning: Don't buy a GIC through an investment broker. They do not "break" a GIC to pay the mandatory minimum.

May 19, 2022
8:18 pm
Alexandra
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COIN said
Warning: Don't buy a GIC through an investment broker. They do not "break" a GIC to pay the mandatory minimum.  

What do you mean?

May 19, 2022
10:04 pm
Loonie
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I don't have great answers. As far as I'm concerned, RIFs are a pain in the rear and it's difficult to get fair treatment for them.

Question: are you looking for annual payout or monthly? A few FIs will allow monthly, but may ding you for it with a reduced rate.

Note that many FIs offer lower rates for RIFs than for non-reg'd or TFSAs. I try to avoid those.

It may depend on where you live.
In Ontario, where I live, I would look at the CUs. That is where most of our RIF funds have gradually migrated. As far as I know, they all offer RIFs and they are the least likely to offer discriminatory lower rates for them. The downside is that it isn't too likely that the CU you choose now will still have the best rates when your GIC matures, necessitating another decision and a transfer.

Savings accounts are essential, and you will find even more reasons to believe that once you get them started. I have been removing our registered accounts from Oaken as they mature, no matter how good their rates are. Just not worth the nuisance. Alas, the last one won't come due until 2024!

Hubert's rates are not necessarily the best, but I do keep some registered funds there because their staff are so easy to work with and that is worth a lot to me with these annoying RIFs. I keep a stash of RIF cash there which I can use as source for taking out additional RIF funds for tax efficiency purposes in years where that makes sense. When RIF GICs mature, I have an opportunity to top up that account before reinvesting.

Other than that, we have or have had RIF funds at various FIs. I can't really recommend one over the others except to say that in general I prefer CUs for this purpose. CUs also have unlimited insurance on RIFs, at least in Ontario and MB. This is important as CIDC only offers 100K.

Remember that you will need to fill out new beneficiary forms. They don't always ask you about this, so it's up to you to remember.

Fees are always a concern. Any FI that charges a fee will likely reimburse at least some of the fee you incur in leaving the previous one. However, Hubert will not reimburse (since they don't charge), and they are , in my mind, a desirable FI for some RIFs. In addition, the fees increase regularly, and they can increase during the course of your GIC. You will get dinged for whatever arbitrary amount they decide to charge.

I hope that helps.

May 20, 2022
4:32 am
Bill
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My parents had their RIF accounts with Edward Jones, basket of conservative investments including some GICs, virtually no time spent on their RIFs (some folks on here seem to like spending all their waking hours on their RIFs, etc, but the vast majority of retirees don't, time becomes more and more precious), quite satisfied with the returns and service, their rep was a nice man (I dealt with him on their behalf in their last few years). Just another option that might suit some.

Also, if it's not worth the bother you can always just close it out, pay the taxes and be done. Especially if the amounts are relatively small.

May 20, 2022
9:48 am
Loonie
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OP didn't say anything about wanting to invest in the things Edward Jones primarily sells, which have a higher risk profile. I would never recommend Edward Jones; never. I discussed my issues with them previously.
But let's not get distracted. OP is asking about interest-bearing accounts such as at Oaken and Hubert which she mentioned.

If simplicity is the goal (not stated), then one good strategy is to choose a deposit broker and stick with them. When GICs mature, they will tell you what is available. All you have to do is choose which one you want and make sure you don't exceed insurance limits. They will do the rest. This is what I plan to do as it becomes more difficult to do myself and I will advise my POA to continue.
If getting best bang for your buck and security are the goals, then you have to work a little harder.

May 20, 2022
12:19 pm
toto
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i use Accelerate for my Rifs, have all my rrsps there

May 20, 2022
5:35 pm
Bill
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What Edward Jones primarily sells is irrelevant, you can have 100% GIC portfolio if that's what you want. Fyi, here are their current GIC rates:
https://www.edwardjones.ca/ca-en/market-news-and-insights/stock-market-news/current-rates

May 20, 2022
6:39 pm
COIN
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Alexandra said

What do you mean?  

Maybe an example is the best way to illustrate.

Let say you have $1mm to invest in a 5 year non-redeemable GIC. You can choose to buy it directly from CU or through Investment Broker ("IB").

CU will allow you you to take out enough funds from the GIC to meet the annual minimum mandatory payout. IB will not.

May 20, 2022
7:59 pm
Loonie
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Bill said
What Edward Jones primarily sells is irrelevant, you can have 100% GIC portfolio if that's what you want. Fyi, here are their current GIC rates:
https://www.edwardjones.ca/ca-en/market-news-and-insights/stock-market-news/current-rates  

Not really suitable for most RIFs as their GICs are all CDIC insured, so you'd have to limit yourself to max 100K for each FI (you'd need to calculate exact limit taking into account interest rate, mandatory withdrawals and term). In that case, I'd rather deal with a deposit broker (where the rates are generally better, at least right now, and you have access to CUs as well where insurance is unlimited for RSP/RIFs).
Based on past experiences, I would expect an Edw Jones rep to try to talk clients out of any decision to only buy GICs. Not recommended by me.

May 20, 2022
9:34 pm
Loonie
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What Edw Jones primarily sells is highly relevant. What they sell the most of is what they are promoting.

May 20, 2022
9:57 pm
Norman1
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I agree with that.

Your Edward Jones rep is not set up to thrive on the customary ¼% per year on GIC's. The rep will be motivated to upsell to products that generate 1% per year in commissions.

May 21, 2022
5:19 am
Bill
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I agree, if you're the type to cave to what's being promoted or want access to CU products EJ might not be the best place. But not true re having to do CDIC calculations, etc, as in my parents' case the rep looked after all that, i.e. make sure they didn't exceed CDIC limits, make sure enough was liquid to make yearly withdrawal, etc. Just had to make their desires clear and he did it all without hitch, including looking after everything properly and efficiently during estate settlement time, which might be another factor for some folks. Maybe we just got a nice guy, very good experience in our case.

May 21, 2022
8:18 am
RetirEd
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Would GIC laddering in an RRIF be a way to handle withdrawals? Just have the proper amounts coming due as needed, with a small cushion at annual or bi-annual rollovers as a just-in-case?
RetirEd

RetirEd

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