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Email this12:42 pm
December 18, 2024
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Is this standard?
My RRIF payment is based on my banks rules…of what GICS are selected to take the payments from. And that’s ok. And of course the % based on my age.
I discovered that they pulled my payment from the principal only of a few of my GICS.
Some showed the amount left (pure interest only) and some interest only balances simply don’t show on my account.
If the accrued interest was taken, they could have taken less principal from one of the GICS and I wouldn’t have this piddly small amount GICS to deal with.
I now have 4, less than $100 GICS that apparently need to wait for maturity 2 and 3 years away.
1. Is that the norm to pull principal only….or wipe out the GIC with principal and accrued interest?
2. The less than $100 GICS ….what am I waiting for? Will they renew that small amount as a GIC?
3. Should I be allowed to withdraw those 4 piddly amount GICS at the accrued value? Or putting it another way, would you want to withdraw the piddly amount GICS left?
1:23 pm
October 27, 2013
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My view is a FI would try to fund the withdrawal amount from as few holdings as possible, i.e. not firstly accrued interest across all GICs and then principal from one GIC to fund the shortfall. There is no reason for a FI to go to the effort of additional administration to look for accrued interest across multiple holdings.
Why not manage (and control) this on your own by strategically investing in a GIC ladder whereby enough GIC(s) mature each year to actually fund the minimum annual withdrawal?
