your new leaders implicity financial and hubert fincincial at 2% | General comparisons | Discussion forum

They are current, regular and posted rates not "teaser"/"promo" rates.

Caveat: Rates, like the weather, are subject to change day by day.

Cheers,
Doug

doc said

I wonder if it is worth investing in these banks. like u say they can just change the rate tomorrow.

Do you mean buying a GIC at these Credit Unions or buying into them on the stock market?
My opinion is about the drop in interest rates is .... if they are still higher than most banks then they are still the better investment and if they have to make the changes to sustain their presence then we should appreciate the changes. No one likes a change to "lower" rates and we feel ripped off ... but should we sweat the small stuff? I also buy ETF's in banks etc using a discount brokerage .... ie XDV, CBO etc.

My answer is Yes continue to invest in GICs and the like....but maybe only take a one year option if you think the rates will go up. Also buy into GICs that are redeemable (with penalty though) if for some wild reason the rates spiked allowing you to re-invest immediately. I guess we all have to listen to what the economists say and what Jim Flaherty has to say ..... go from there and see what term fits in for you.

When considering ETFs, remember there are literally hundreds to select from across a wide spectrum of market sectors. They are traded like stocks on the TSX and are considered a passive investment strategy, simply performing at the same level as the sector you are invested in. They also have a very low management expense ratio (MER) and I personally like them a whole lot better than mutual funds. In my view, iShares, Vanguard & BMO have some of the best offerings, which you can examine at http://etf.stock-encyclopedia......anada.html

Deb said

Kanaka,
What kind of returns do you get on your ETF's if you don't mind me asking?
I haven't ventured into this yet, but it would probably be wise to.

Hi, Deb
I control 2 TFSA accounts one each for my wife and I overall since day one 8.996% and 10.843%. I have done a couple of shuffles. I picked a commission free ETF and buy one a month if there is enough dividend money in our accounts. Our accounts show that we are making 3.26% and 4.46% as of today. I think the difference is how they calculate cost of shares vs worth today and they are NOT taking into account that I purchased some of the shares with dividend funds. I know my numbers are correct.

Regards Peter

Deb said

You've gotten great returns on those TFSA's, Peter!
1. Did you get set up through a broker/investment advisor or research ETF's yourself?

2. Doc, the timing would suggest that Hubert and Implicity are trying to scoop up business from all the credit unions that dropped their rates. I would be very surprised if they didn't drop their rates after they've got their customers, which is what Hubert did before.

1. I have 2 TFSA accounts with Itrade one for me and one for my wife. Research myself from online information and one selection was mirrored from my RRSP account that I have with an adviser. Some trial and error too. My %'s include my losses too.

2. Exactly. Who would trust Hubert. They are both out soliciting for new business and then the downward let down in a few months. BUT I JUST CHECKED....their GIC rates are better.....they can't change those until you renew.

Deb said

You've gotten great returns on those TFSA's, Peter!
Did you get set up through a broker/investment advisor or research ETF's yourself?

Doc, the timing would suggest that Hubert and Implicity are trying to scoop up business from all the credit unions that dropped their rates. I would be very surprised if they didn't drop their rates after they've got their customers, which is what Hubert did before.

Here is some information to support to why we are seeing a dip in rates.
http://www.moneysense.ca/2013/.....-slowdown/
Here are some tips in regards to buying ETF's.
http://www.moneysense.ca/2013/.....n-its-not/