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Email this9:33 am
February 7, 2019
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COIN said
No, but came really close a couple of time.It's actually ridiculous to risk 100% of your principal for an extra 25 basis points, but as a rate chaser I did. Unlike stocks, GIC's have no upside, none.
And ... Unlike stocks, GIC's have no downside either ...
| CGO |
9:39 am
October 21, 2013
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It's that old diversification thing that you are always telling us about. Someone who would buy these would be hedging their bets that shorter rates on renewal would be less.
I wouldn't buy them right now, but if you've ever in your life bought long bonds or CSBs, then there will likely come a time when you will consider these.
I bought long provincial bonds at 12% in about 1991 and was extremely happy for their 15 year duration. Wish I'd bought more!
9:52 am
March 15, 2019
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Loonie said
I bought long provincial bonds at 12% in about 1991 and was extremely happy for their 15 year duration. Wish I'd bought more!
What has been the total return (capital appreciation and dividends) for stocks since 1991?
9:56 am
March 30, 2017
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COIN said
What has been the total return (capital appreciation and dividends) for stocks since 1991?
add to that interest income tax rate is much higher than that on capital gain and eligible dividends to have an apple to apple comparison. In other words, how much one actually earns as NET return fixed income vs equities.
10:24 am
October 21, 2013
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Right. They are not directly comparable for a number of reasons, including the vast difference in risk.
2:02 pm
April 6, 2013
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COIN said
What has been the total return (capital appreciation and dividends) for stocks since 1991?
According to Historical Returns on Stocks, Bonds and Bills: 1928-2021, for the S&P 500,
- $28,895.11 invested at the start of 1991 became
- $761,710.83 by the end of 2021.
That works out be 11.1% per annum for the 31 years.
According to Investing.com, TSX 300 Total Return Index was
- 5,616.47 at the start of 1991 and
- 79,865.73 at the end of 2021.
That works out to be 8.94% per annum for the 31 years.
5:00 pm
September 11, 2013
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Agreed. I never calculate my specific return on anything, but even so it's very obvious to me my equity pile has grown way better over the decades than my fixed income pile. Like, way. And no surprise, it's precisely what the experts said to expect from long-term investing vs long-term saving.
9:24 pm
April 6, 2013
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8.94% per annum would result in doubling one's investment every 8.1 years.
Alternatively, it would 14.2X one's investment in 31 years.
Hard for a GIC buyer to miss that kind of long-term return if it had occurred.
5:43 am
March 30, 2017
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Norman1 said
8.94% per annum would result in doubling one's investment every 8.1 years.Alternatively, it would 14.2X one's investment in 31 years.
Hard for a GIC buyer to miss that kind of long-term return if it had occurred.
Add to that, GIC reinvestment risk means even with a ladder approach, you are only getting a 'avg' return esp over a 31 years period. Certainly not able to earn the 10%+ every year.
Please write your comments in the forum.