I have literally never made this sort of comment but I genuinely cannot commend you enough for this sort of video. The fact you’re listening to your clients and realizing “hey there’s probably more than 1-in-40m people going through this” and giving genuinely great advice is so amazing! Again i literally never comment but especially with this much praise. Even though im decently literate financially im beyond happy i found your channel
Could you do a video on best tricks and tips and advice for a single person in retirement? There seem to be a lot of options for couples with income splitting and survivor benefits but I feel like single people are really overlooked and are at a major disadvantage. Really enjoying your videos!
EQ also does 3 month GIC’s and deposit it in your savings when the time is up. They notify you and you can do another if you want. I do this with my Emergency fund as I also have a normal savings with EQ. So pleased with them. The big banks are only out for themselves. Yeah for online banks.
Shouldn't you be referring Canadian Tire Financial bank instead which is offering a significantly better 1.55 percent? I don't believe it is a promotional rate. Also, should consider limiting the deposit to $100,000 to ensure it is insured by the CDIC. Maybe spread the deposit between the couple.
I have part of my investments in a market linked GIC, just because I truly can't afford any longer term dips on everything. (almost retired, and not a lot (250k) of savings) Down side is that its capped at 4%/yr. which was reached (extra going to bank) this year. Not great, but I took the 4% as a trade off for security. I also have ETF investments to balance things off. I've been really enjoying your presentations.
Yes, EQ bank is good. You should mention that it's CDIC protected FWIW. For things like savings for tax payments and emergency savings, I agree it's about the best. I can use my line of credit if I need money today, but it only takes a day or so to get money transferred so I'm only paying a day or two of interest if I do that. We can pay our property tax on a monthly basis, so it gets paid as a regular bill which is kind of convenient.
Hi Adan. Thank you for today's advice. I only put money in cash and market linked gics at most. Good advice on putting cash into EQ bank with a higher interest rate.
My advice ? Buy CIBC stock @ 4% dividend. Stuff your deposits. I was wrong. Should have bought it in mid October last year at $48.15. Now is 65.77 no mention of dividends. Now 5.47%. GIC at 1.3% is a joke. Stop lending your money to the bank for cheap interest BUY the bank ! Even if it doesn't move in a year you still get dividends which are almost tax free.
hI aDAM. gREAT ADVICE FROM YOU ON THE BEST OPTION FOR gic INVESTORS LIKE ME. I was wondering how best to invest my noney with a gic and tfsa combined..great advice
If you are going the HISA route, might I suggest you use Canadian Tire Financial Bank instead of EQ for the time being. They are currently offering 1.55 per cent, at least .30 higher than EQ and the rate isn't promotional. Also split the investment between the couple to ensure they are well under the $100 000 limit that is insured by CDIC. Always shop around for the best rates and move your money if a better long term rate comes along, if the difference of interest you would have earned is worth more than the time it takes to do so. Sometimes it is.
My 88 yr old mother just sold her house $600k and moved into Retirement home. Extra cost $35k/yr. I’m thinking laddered GICs for 5yrs. Interest will increase her inc tax. What do you think?
Thank you to give me proper advice on rrif. I am not planning to retire soon. I am 64 now and want to convert my rrsp to rrif. Can I claim the 2000 credit though I am not collecting pension. What is better to transfer lump sum or transfer every year. Regards Dan
Holy molly where can you make an investment that pays over inflation these days? I just bought a GIC interest rates are finally going up. Nothing to compensate for inflation.
With the present market mess, some would be nervous to put more than the CDIC insured amount into one bank, for obvious reasons. With a GIC, aren't they "guaranteed" insured for any amount? If not, what type of "bank" investment is insured over the CDIC insured amount which I believe is $100,000 in Canada
Question.... If one had a GIC for 3 months for example, and wanted the money in one month, can they withdraw all the money with no returns, or is it cut in stone that they will NOT allow you to withdraw?
The catch with locked in GICs is that there is a penalty for cashing them in early. Ones that are locked in for 3 to 5 years can have penalties that will cut into your principle if you cash them in, in the first year or two before they mature. One of my recently matured and did well. It was for a 3 year term with a guaranteed return rate of .49, but ended up getting a 18 percent return.
I only use RBC and you need two different banks to link to EQbank...do you have any alternative to EQBank ? TY, great infos here for sure ! New sub here !
I’ve learned that I can link my bank to EQ, transfer money over but it takes 5 days to show up in EQ. Not ideal. OR you can go into your personal bank account, then send yourself an ETransfer to your email account. Once you get the email saying you have a deposit you can move “deposit it” or move the money directly to your EQ bank, and it only takes 1/2 an hour for it to move over to EQ.
The majority of GICs are CDIC insured to $100k www.cdic.ca/your-coverage/protecting-your-deposit/term-deposits/ Check with you FI to see what coverage they have. I would say if you use a reputable and established FI, the insurance shouldn't be a determining factor.
Well. Saving accounts usually are taxable. They cannot be TFSA type. So inflation now around 3.6 % as it was recently reported, Saving accounts with 1.4% minus taxes. Not so attractive. Look at BMO Call ETFs. They can be TFSA and paying monthly annual 6 - 7%. You can reinvest paid monthly dividends with DRIP program. Since they are ETFs they are not guaranteed. But you can choose low risk like utilities or treasury.
You can have the 1.25% high interest in both the TFSA and RRSP. The big FI have brainwashed society in their marketing that it's not possible let... As for the ETFs you mentioned, I think we missed the mark here on short term zero risk options...those carry way more risk than 99% of investors understand.
K so firstly my tfsa IS my savings account. To me this video was best case scenario for a certain set of circumstances. If that does not apply to you then your point is moot. Inflation is also negligible at this point since overall yearly inflation rate is expected to average out to between 2.2 to 2.9%. So say economic think tanks anyway. And the 3.6% is only for one month. As the country opens and expands, as businesses recoup their losses (which is what is happening right now...to be expected after a world crisis) the inflation rate will meander back to norms you may be more happy with. Adjusting your spending habits while leaving your investments solidly placed in lowest acceptable, long term risk will make this temporary blip in inflation unnoticeable for those who are fortunate enough to have the funds to invest. And it seems that is what this opinion is meant to indicate...best case scenario. But since you have an opinion, maybe you should start your own channel and express and prove your points. You know, just like school where you had to “show your work”. How long have you invested, how much have you invested, was it lump sum or decades old deposits or trust fund inheritance, did someone advise you and is this where you actually put your money or is it just something you read from a pamphlet? Seriously, we’d like to know 🤔
You shouldn't have your TFSA money in savings accounts, the gains are protected so you want growth there. Savings accounts are fully taxed here, but getting some interest is better than no interest at all. I think this sort of thing is for high availability short term money. If you've got money in the market, there's a chance you'll get your nads squashed if you have to get your money out earlier. If you've got a lot of money, I suppose you could invest in gold or silver, but if you cash it in you're paying capital gains there, plus you could lose it all in a terrible boating accident like I did.
@@tedpark6814 why to carry your precious metals in the boat? Dig it on your back yard. And when buying precious metals do it in anonymous transaction using cash while it is still legal to stay untraceable.
not really practical if you already have a self directed non registered account at lets say TD ( example). You would need to take out the money, drive over to the EQ bank and set up the account. However I guess you are offering that as an alternative. Maybe you can do everything on line govt forms and Id, etc
All online in minutes. The transfer form is part of the account opening. The days of bricks and mortar banks are ending - or at least drastically changing. Instead of a fancy branch I personally would prefer better rates... Thanks for tuning in.
It's all done online, and the setup of fund transfers can be done over the internet. It takes a week to transfer funds though. They sort of complement regular banking. I need an actual bank for many activities, but I never use my bank for ForEx or savings because their rates are crap.
All I am saying is , if you know a better way to park the money in a short term with no risk, flexibility and higer interest rate than EQ please let the viewers know
There is always a best case scenario. And this video explains one possible best case if your portfolio fits the need...i.e. short term investment with lowest risk and highest return. If you don’t need a short term investment, if your tfsa is at capacity, if your major investments are sitting comfortably in a long term strategy with appropriate risk then your statement is moot. And to be sure, the current economic situation is only “current” until tomorrow’s economic situation changes your wants and needs.
I have literally never made this sort of comment but I genuinely cannot commend you enough for this sort of video. The fact you’re listening to your clients and realizing “hey there’s probably more than 1-in-40m people going through this” and giving genuinely great advice is so amazing! Again i literally never comment but especially with this much praise. Even though im decently literate financially im beyond happy i found your channel
Could you do a video on best tricks and tips and advice for a single person in retirement? There seem to be a lot of options for couples with income splitting and survivor benefits but I feel like single people are really overlooked and are at a major disadvantage. Really enjoying your videos!
I'm half way done preparing one...it will be out this summer.
My investments are both GIC’s...recommended by my bank. Thank you for this information.
EQ also does 3 month GIC’s and deposit it in your savings when the time is up. They notify you and you can do another if you want. I do this with my Emergency fund as I also have a normal savings with EQ. So pleased with them. The big banks are only out for themselves. Yeah for online banks.
Thanks for the EQ bank suggestion. I was just in the process of looking to set up an account for property taxes and this fits perfectly.
thankyou i opened an EQ account this morning
Interest rates have done nothing but go down over the course of my adulthood. Gen X!!
I guess things have changed, Eh!!
Checked out EQ bank today with your link, liked it was Canadian & secured funds up to $200k. I used to use GIC’s, in the past, too.
Great info. No downside with the EQ savings account in real returns over most GICs, plus you're not locked in 👍
Shouldn't you be referring Canadian Tire Financial bank instead which is offering a significantly better 1.55 percent? I don't believe it is a promotional rate. Also, should consider limiting the deposit to $100,000 to ensure it is insured by the CDIC. Maybe spread the deposit between the couple.
Here I am a year later and a 5 yr GIC at 5.1% is looking really good compared to what my mutuals have been doing for the last three quarters!
I have part of my investments in a market linked GIC, just because I truly can't afford any longer term dips on everything. (almost retired, and not a lot (250k) of savings) Down side is that its capped at 4%/yr. which was reached (extra going to bank) this year. Not great, but I took the 4% as a trade off for security. I also have ETF investments to balance things off. I've been really enjoying your presentations.
Thanks Ron. Yes tough market for guaranteed returns.
“Not a lot 250k” 😳that’s a lot of savings you should be proud of yourself
Which bank gave you 4% on a GIC?
Thanks
Yes, EQ bank is good. You should mention that it's CDIC protected FWIW. For things like savings for tax payments and emergency savings, I agree it's about the best. I can use my line of credit if I need money today, but it only takes a day or so to get money transferred so I'm only paying a day or two of interest if I do that. We can pay our property tax on a monthly basis, so it gets paid as a regular bill which is kind of convenient.
Fast forward to July 2022 Tangerine have GIC's @4.50% for a one year term.
And EQ bank is 5% for a 1 yr GIC
Most intelligent words I've heard.,
You're right on that
Hi Adan. Thank you for today's advice. I only put money in cash and market linked gics at most. Good advice on putting cash into EQ bank with a higher interest rate.
Cool. But what about Quebec residents?
What I do is to do 5-year GICs every year with 1/5 of $, so I got highest rate with $ available every year.
Nice!
My advice ? Buy CIBC stock @ 4% dividend. Stuff your deposits. I was wrong. Should have bought it in mid October last year at $48.15. Now is 65.77 no mention of dividends. Now 5.47%. GIC at 1.3% is a joke. Stop lending your money to the bank for cheap interest BUY the bank ! Even if it doesn't move in a year you still get dividends which are almost tax free.
hI aDAM. gREAT ADVICE FROM YOU ON THE BEST OPTION FOR gic INVESTORS LIKE ME. I was wondering how best to invest my noney with a gic and tfsa combined..great advice
Thanks for your video. Could you tell me what is "Loan Value" in GIC? Thanks in advance.
Perfect timing for me, I’ve got a couple small GIC’s coming up right away.
Perfect. Our referral link will give you and extra $20 too!
If you are going the HISA route, might I suggest you use Canadian Tire Financial Bank instead of EQ for the time being. They are currently offering 1.55 per cent, at least .30 higher than EQ and the rate isn't promotional. Also split the investment between the couple to ensure they are well under the $100 000 limit that is insured by CDIC. Always shop around for the best rates and move your money if a better long term rate comes along, if the difference of interest you would have earned is worth more than the time it takes to do so. Sometimes it is.
I agree with Neolithic. What the heck is our there for fairly well off singles? I am approaching retirement. Woo hoo!!
My 88 yr old mother just sold her house $600k and moved into Retirement home. Extra cost $35k/yr. I’m thinking laddered GICs for 5yrs. Interest will increase her inc tax. What do you think?
What are your thoughts on ZPW ETF as an option to GICs ?
Thank you to give me proper advice on rrif. I am not planning to retire soon. I am 64 now and want to convert my rrsp to rrif. Can I claim the 2000 credit though I am not collecting pension. What is better to transfer lump sum or transfer every year.
Regards
Dan
Thank you!!
I found a bank offering 5% on a 10 year lock. Is that worth investing in or would you suggest another long term strategy?
Does being locked up for 10 at 5% line up with, and help you, reach your goals?
fast forward 10 months and gic rates have risen to 4%+ (5yr)
Holy molly where can you make an investment that pays over inflation these days? I just bought a GIC interest rates are finally going up. Nothing to compensate for inflation.
With the present market mess, some would be nervous to put more than the CDIC insured amount into one bank, for obvious reasons. With a GIC, aren't they "guaranteed" insured for any amount? If not, what type of "bank" investment is insured over the CDIC insured amount which I believe is $100,000 in Canada
Question.... If one had a GIC for 3 months for example, and wanted the money in one month, can they withdraw all the money with no returns, or is it cut in stone that they will NOT allow you to withdraw?
Will depend. Sometimes it locked in, sometimes you can get your money back with no interest
The catch with locked in GICs is that there is a penalty for cashing them in early. Ones that are locked in for 3 to 5 years can have penalties that will cut into your principle if you cash them in, in the first year or two before they mature. One of my recently matured and did well. It was for a 3 year term with a guaranteed return rate of .49, but ended up getting a 18 percent return.
I get rate for 4.10percent for Gic
Is the interest earned at EQ must be reported as income on tax return so I would lose 35% of it
If it's not in the TFSA or RRSP then yes....as you would anywhere. So still the highest rate.
1.5% bond fund expense run from that advisor
Unfortunately, EQ Bank does not offer their service to Quebec residents :-(
Correct. Maybe try the Canadian Tire one...I heard they have good rates. Not sure if available in Quebec either, but next best option
CHEZ DOMAIGE!
2023 GIC is 5%
I only use RBC and you need two different banks to link to EQbank...do you have any alternative to EQBank ?
TY, great infos here for sure ! New sub here !
No you don't need 2 banks. I only use 1 and set my account up no problem. Maybe try again?! Not sure what you ran into there.
Thanks for the sub 🙏
I’ve learned that I can link my bank to EQ, transfer money over but it takes 5 days to show up in EQ. Not ideal. OR you can go into your personal bank account, then send yourself an ETransfer to your email account. Once you get the email saying you have a deposit you can move “deposit it” or move the money directly to your EQ bank, and it only takes 1/2 an hour for it to move over to EQ.
What about CIDC/CIPF between savings and GIC? I could (probably?) be wrong but I thought one was covered for $100k and the other for up to $1M.
The majority of GICs are CDIC insured to $100k
www.cdic.ca/your-coverage/protecting-your-deposit/term-deposits/
Check with you FI to see what coverage they have. I would say if you use a reputable and established FI, the insurance shouldn't be a determining factor.
the big 5 are paying ".6" on GICS
Maybe you are right, but your advertising of EQ bank is too bold and pushy, so I would think twice before prefering one thing over another.
2 years ago when video was fresh, it was by far best option out there. Still is one of the better ones now. But a few more options out there.
Any recommendations for emergency funds currently it's in EQ. I'm assuming that's still the best option.
Yes it is. Use the regular savings account at EQ for this.
Interest rates going up "a bit" lol?
Well.
Saving accounts usually are taxable. They cannot be TFSA type. So inflation now around 3.6 % as it was recently reported, Saving accounts with 1.4% minus taxes. Not so attractive. Look at BMO Call ETFs. They can be TFSA and paying monthly annual 6 - 7%. You can reinvest paid monthly dividends with DRIP program. Since they are ETFs they are not guaranteed. But you can choose low risk like utilities or treasury.
You can have the 1.25% high interest in both the TFSA and RRSP. The big FI have brainwashed society in their marketing that it's not possible let...
As for the ETFs you mentioned, I think we missed the mark here on short term zero risk options...those carry way more risk than 99% of investors understand.
K so firstly my tfsa IS my savings account. To me this video was best case scenario for a certain set of circumstances. If that does not apply to you then your point is moot. Inflation is also negligible at this point since overall yearly inflation rate is expected to average out to between 2.2 to 2.9%. So say economic think tanks anyway. And the 3.6% is only for one month. As the country opens and expands, as businesses recoup their losses (which is what is happening right now...to be expected after a world crisis) the inflation rate will meander back to norms you may be more happy with. Adjusting your spending habits while leaving your investments solidly placed in lowest acceptable, long term risk will make this temporary blip in inflation unnoticeable for those who are fortunate enough to have the funds to invest. And it seems that is what this opinion is meant to indicate...best case scenario.
But since you have an opinion, maybe you should start your own channel and express and prove your points. You know, just like school where you had to “show your work”. How long have you invested, how much have you invested, was it lump sum or decades old deposits or trust fund inheritance, did someone advise you and is this where you actually put your money or is it just something you read from a pamphlet? Seriously, we’d like to know 🤔
You shouldn't have your TFSA money in savings accounts, the gains are protected so you want growth there. Savings accounts are fully taxed here, but getting some interest is better than no interest at all. I think this sort of thing is for high availability short term money. If you've got money in the market, there's a chance you'll get your nads squashed if you have to get your money out earlier. If you've got a lot of money, I suppose you could invest in gold or silver, but if you cash it in you're paying capital gains there, plus you could lose it all in a terrible boating accident like I did.
@@tedpark6814 why to carry your precious metals in the boat? Dig it on your back yard. And when buying precious metals do it in anonymous transaction using cash while it is still legal to stay untraceable.
not really practical if you already have a self directed non registered account at lets say TD ( example). You would need to take out the money, drive over to the EQ bank and set up the account. However I guess you are offering that as an alternative. Maybe you can do everything on line govt forms and Id, etc
All online in minutes. The transfer form is part of the account opening.
The days of bricks and mortar banks are ending - or at least drastically changing. Instead of a fancy branch I personally would prefer better rates...
Thanks for tuning in.
wake up, this is 2021 not 1921
It's all done online, and the setup of fund transfers can be done over the internet. It takes a week to transfer funds though. They sort of complement regular banking. I need an actual bank for many activities, but I never use my bank for ForEx or savings because their rates are crap.
With the current economic situation, none of the above mentioned is a good investment
And what would you recommend then for short term savings!? Saying these are bad options with no alternative doesn't help the viewers..
What is your alternative ? Stop saying it's not a good recommendation and have no other alternative.
@@wallylam8888 stop your abuse here. You have no right to stop any one from making comments,
All I am saying is , if you know a better way to park the money in a short term with no risk, flexibility and higer interest rate than EQ please let the viewers know
There is always a best case scenario. And this video explains one possible best case if your portfolio fits the need...i.e. short term investment with lowest risk and highest return. If you don’t need a short term investment, if your tfsa is at capacity, if your major investments are sitting comfortably in a long term strategy with appropriate risk then your statement is moot. And to be sure, the current economic situation is only “current” until tomorrow’s economic situation changes your wants and needs.