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Email this8:53 am
January 12, 2019
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RatesDotCa Link ➡ https://rates.ca/resources/march-2021-economist-rate-predictions
As for myself, I expect interest rates to start rising, sometime around Q2 of '22.
What's your take ❓
- Dean
" Live Long, Healthy ... And Prosper! "
9:22 am
October 29, 2017
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It’s very simple. Interest rates aren’t going up until inflation is at least 2.5% and probably more like 3.0% and higher. And that needs to be sustained for a few months too.
The only question to ask, is whether you think the economy is going to take off, increasing demand, or is our currency going significantly down in value.
11:07 am
October 27, 2013
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Short term rates are not going up but 5 year rates will be influenced some by market sentiment on 5 year bonds. Central banks can manage that to some degree but not entirely.
2:27 pm
October 21, 2013
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I have not reinvested the five year GICs in my ladder yet this year. I keep a float large enough to allow me to pick my time during the year. Last year, I bought in January, which turned out to be the best rate I could have gotten that year.
I'm hoping for some improvement in upcoming months. I may lock in by the summer if there's no action by then. These decisions are always tricky.
2:49 pm
October 27, 2013
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Do you have the option to spread out the purchases of your 5 year GICs into 2-3 separate purchases at 2-3 separate times to take some of the up/down risk out? Many folks operate five year ladders with 10 GICs or 15 GICs to spread maturity dates around...albeit at considerably more portfolio management effort.
6:05 pm
October 21, 2013
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Yes, I can do that, and in most years I do have more than one non-reg'd five-yr GIC maturing, but am trying to simplify where possible. Because of insurance limits, sometimes it's not possible to reduce it to one GIC - especially right now as MB CUs with their unlimited insurance are not exemplary in rates. We are trying to buy only joint GICs in non-reg'd 5 yrs, which also limits our coverage for CDIC and ON CUs.
I also keep several one-yr GICs for liquidity, which mature through the year. I suppose I could wrap them into even more five year GICs maturing more frequently but so far have chosen not to.
10:07 am
January 12, 2019
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.
More indications that rates will start to go UP⬆, sooner than expected :
I'm still guessing Q2 of '22.
- Dean
" Live Long, Healthy ... And Prosper! "
5:45 pm
December 26, 2018
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I locked 5 years GIC 2 year ago at 3.75% with Meridian.
I don't think we will see above 3% before 2023.
I wonder if I should invest in Etf's.
10:03 pm
September 6, 2020
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Canadianbull said
I locked 5 years GIC 2 year ago at 3.75% with Meridian.
I don't think we will see above 3% before 2023.
I wonder if I should invest in Etf's.
I went to a bank seminar on Eft's for a 1-2 hour session years ago. It did not take long for me to realize it was not for me.
What is your average yield? What is your average term and weighted term?
Have a Great Day
11:35 am
January 12, 2019
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Canadianbull said
I locked 5 years GIC 2 year ago at 3.75% with Meridian.
I don't think we will see above 3% before 2023.I wonder if I should invest in Etf's.
With no guarantees (or insurance), ETF's can't be directly compared with GIC's.
I've been invested in ETF's (and other stocks) for years now. If your 'Comfort Zone' is limited to insured SA's & GIC's, then ETF's are probably not for you.
.
- Dean
" Live Long, Healthy ... And Prosper! "
2:40 pm
September 6, 2020
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I've been invested in ETF's (and other stocks) for years now.
- Dean
How have your Eft's done?
Have a Great Day
2:57 pm
September 6, 2020
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Loonie said
I have not reinvested the five year GICs in my ladder yet this year. I keep a float large enough to allow me to pick my time during the year. Last year, I bought in January, which turned out to be the best rate I could have gotten that year.
I'm hoping for some improvement in upcoming months. I may lock in by the summer if there's no action by then. These decisions are always tricky.
I am buying in January for my 5 year ladder. Good in April 2019, January 2020. Rates lower in January 2021. I bought. I am watching to see if/when the rate recovers to January rate. The one thing about 5 year ladder you do not need to have 20% in each year. You could have 15%, 20%, 30%, 20%, 15% or whatever ratios you want in each year. No plans for another year. Actually fully invested. No cash. You have cash in account(s) paying 1.1% to 1.8% so you can wait until the time is right.
Have a Great Day
3:39 pm
January 12, 2019
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topgun said
How have your Eft's done?
All things considered, not too bad (I'm guessing you mean ETF's ).
But back in late 2019 I 'Thinned The Herd' (sold a lot of my stocks), including all but two of my ETF's. Now the only ETF's I have left is the boring TSX:VCE (which has done quite well), and the gold producers TSX:HEP. As expected, HEP has been a 'Wild Ride' ... but I love that 8% Dividend 
.
Topgun ... do you have any ETF's ❓
- Dean
" Live Long, Healthy ... And Prosper! "
10:38 am
September 6, 2020
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As I stated below I took a bank seminar years ago. I quickly determined not for me. Never bought any ETF. I have a friend that invests in stocks. He seems loaded in bank stocks. I try to spread my stocks over many sectors. It hopefully smooths out wild rides. Different strokes for different folks apparently works well.
Have a Great Day
12:46 pm
September 6, 2020
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AltaRed said
Do you have the option to spread out the purchases of your 5 year GICs into 2-3 separate purchases at 2-3 separate times to take some of the up/down risk out? Many folks operate five year ladders with 10 GICs or 15 GICs to spread maturity dates around...albeit at considerably more portfolio management effort.
Loonie said
Yes, I can do that, and in most years I do have more than one non-reg'd five-yr GIC maturing, but am trying to simplify where possible. Because of insurance limits, sometimes it's not possible to reduce it to one GIC - especially right now as MB CUs with their unlimited insurance are not exemplary in rates. We are trying to buy only joint GICs in non-reg'd 5 yrs, which also limits our coverage for CDIC and ON CUs.
I also keep several one-yr GICs for liquidity, which mature through the year. I suppose I could wrap them into even more five year GICs maturing more frequently but so far have chosen not to.
Interesting the possibilities. 5 year ladder with 1 year GIC's work well. I am building 5 year ladder. I have a HISA for short term. I found having more than one 5 year GIC maturing each year creates more portfolio maintenance. I am merging them as they mature.
Have a Great Day
9:52 am
January 12, 2019
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Dean said
All things considered, not too bad (I'm guessing you mean ETF's).
But back in late 2019 I 'Thinned The Herd' (sold a lot of my stocks), including all but two of my ETF's. Now the only ETF's I have left is the boring TSX:VCE (which has done quite well), and the gold producers TSX:HEP. As expected, HEP has been a 'Wild Ride' ... but I love that 8% Dividend
Topgun ... do you have any ETF's ❓
Dean
Topgun ... No ❓
- Dean
" Live Long, Healthy ... And Prosper! "
4:26 pm
September 6, 2020
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Loonie said
Yes, I can do that, and in most years I do have more than one non-reg'd five-yr GIC maturing, but am trying to simplify where possible. Because of insurance limits, sometimes it's not possible to reduce it to one GIC - especially right now as MB CUs with their unlimited insurance are not exemplary in rates. We are trying to buy only joint GICs in non-reg'd 5 yrs, which also limits our coverage for CDIC and ON CUs.
I also keep several one-yr GICs for liquidity, which mature through the year. I suppose I could wrap them into even more five year GICs maturing more frequently but so far have chosen not to.
Do you track the average yield on GIC's? Whether 1 or 5 yr. Yes/No
Do you track average term? Yes/No
Do you track weighted term? Yes/No
Have a Great Day
11:18 pm
October 21, 2013
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Not sure why you are asking me these questions, especially in such an abrupt survey format.
I have no plans to answer.
3:49 am
September 6, 2020
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Loonie said
Not sure why you are asking me these questions, especially in such an abrupt survey format.
I have no plans to answer.
I am sorry I asked in abrupt survey format. As far as CDIC coverage please check your third party GIC's available on your brokerage account. The rates are not the best. They are competitive. I purchased 2-5 year GIC's in 2018. The reporting is good. Tax reporting in a timely matter. Easy to purchase. Easy to transfer funds in/out. Phone service is excellent.
Have a Great Day
5:50 am
October 21, 2013
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topgun said
I am sorry I asked in abrupt survey format. As far as CDIC coverage please check your third party GIC's available on your brokerage account. The rates are not the best. They are competitive. I purchased 2-5 year GIC's in 2018. The reporting is good. Tax reporting in a timely matter. Easy to purchase. Easy to transfer funds in/out. Phone service is excellent.
I think you are trying to be helpful, but this route is not suitable for my situation. And, as you suggest, there are usually better rates to be had elsewhere.
Please write your comments in the forum.