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Email this5:44 pm
December 29, 2018
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Bill said
(...) I withdrew from the markets pretty well totally about 3 years ago (...), but then the virus came along and I couldn't resist going back in when the market tanked in first part of 2020, to me was clearly a classic buying opportunity, and I don't think I've ever made as much in the markets in an 18-month or so timeframe as this. Now I just have to figure out when best to exit again. So I guess the lesson is have a plan that you know you can stick to, but also don't be totally blind if things happen in the world that clearly present short-term changes/opportunities.
Excellent timing! I sold everything when the market was tanking, I only lost 15% instead of 30. I re-entered and made so much money in a short period. Now, the market isn't giving as much, but it's still better than any GIC...unless the market drops another 30%.
6:35 pm
September 11, 2013
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canadian.100, us older guys have seen a bunch of these events over the decades and every single time, in my lifetime, there's been a bounceback, pretty quickly usually. When I was younger I believed, like most, the world was ending narrative when these things happened so I didn't act (or maybe even sold off a bit), but then at some point I realized I'd been wrong to do that, every single time! So I learned. This time was a little different for me, I took a bit of a gamble I guess by just buying a pile of TD Bank (millions of shares trade every day so pretty easy to do), over a few days, I felt Cdn banks would recover and prosper and TD was getting good press, and it's up nicely, plus dividends. Still have to realize the gains.
Loonie, a married couple can have a fair number of accounts at the institutions featured on this site (up to CDIC limits) plus I feel relatively safe leaving unlimited amounts in discount broker and big bank accounts (earning zero or close to it). Plus registered (or non-registered, for that matter) accounts at discount brokers can hold a variety of low-paying GICs, so that helps too. So if you're not concerned about return there are lots of places to park cash, in my view. And I'm not worried about the banking system right now, when I speak about capitalism being tossed on the fire I'm really thinking from the point of view of young people today who are assuming the future decades will resemble the past (and what else can they do?), I just don't have the confidence the 1st world markets will bear that out during their lifetimes - though Asia's slowly rising, in fits and starts, so maybe that's where capitalism eventually thrives - ? I don't fear a cataclysmic event, it's a slow erosion over a long time, in my view. I really hope I'm completely wrong on this.
7:01 pm
October 21, 2013
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Thanks for the response, Bill. I appreciate it. Hadn't thought much about the brokerages as an avenue, although i know one can get reasonable mileage out of the deposit brokers as they often have a number of obscure banks in their roster and typically pay more than through discount brokers - as Norman has documented.
I don't want any more "single" accounts, and am gradually eliminating them, and should be done by 2023 except for some temporary deposits in HISAs. At my age, I only want joint accounts, so that makes it trickier, but it will make it infinitely easier (and cheaper) for the survivor, who may be quite muddled at that point.
I don't know if capitalism is on the way out or not, but that's a huge question.
6:34 am
January 9, 2011
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Loonie said
I don't want any more "single" accounts, and am gradually eliminating them, and should be done by 2023 except for some temporary deposits in HISAs. At my age, I only want joint accounts, so that makes it trickier, but it will make it infinitely easier (and cheaper) for the survivor, who may be quite muddled at that point.
I don't know if capitalism is on the way out or not, but that's a huge question.
I have mostly done the same. I wish the HISA and GIC Comparison charts would have another column indicating 'joint accounts'. As it stands its really hard to find a definitive answer, both in the forums and banks' web sites, as some of the current top payers won't do them.
"Keep your stick on the ice. Remember, I'm pulling for you. We're all in this together." - Red Green
7:50 am
September 11, 2013
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I like the discount brokers because of easy link to big bank account, e.g. Investor's Edge and CIBC bank account, very quick and easy to transfer in or out. I don't know if you can do that with deposit brokers - ?
As I don't want to exceed CDIC limits at the smaller banks (e.g. EQ) I do keep a spreadsheet to keep track of grand total of gics and deposits I have at each of those fi's whatever accounts they may be located in.
We've appointed one of our kids as executor if the survivor is unwilling or unable to act, I definitely want someone clear-headed supervising that job. That can be a problem for some people without an obvious candidate, but the few I know do seem to have found someone younger (relative or friend) they think they can trust with the job.
I don't forsee having to eliminate our separate, individual accounts, though there will be a probate bill when the first one goes, I guess. 3 of our 4 parents stayed relatively sharp pretty much to the end so I guess I'm counting on that at this point, but for sure plans might have to change if things start getting foggy.
8:37 am
December 12, 2009
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Loonie said
I don't want any more "single" accounts, and am gradually eliminating them, and should be done by 2023 except for some temporary deposits in HISAs. At my age, I only want joint accounts, so that makes it trickier, but it will make it infinitely easier (and cheaper) for the survivor, who may be quite muddled at that point.
Unless your survivor (assumed to be your spouse) passes away at the same time as, or within months, of you, before things have all gotten updated, which can, and does, happen more often than one might think.
Cheers,
Doug
12:39 pm
September 7, 2018
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Doug said
Unless your survivor (assumed to be your spouse) passes away at the same time as, or within months, of you, before things have all gotten updated, which can, and does, happen more often than one might think.
Cheers,
Doug
Yes - I am aware of situations where the surviving spouse passed fairly soon (either naturally or due to an accident) after the 1st spouse passed and you are correct it was not a smooth effort to deal with when the paperwork was not fully updated or well documented.
2:09 pm
October 21, 2013
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There is no telling what will happen, and that is the point we have to bear in mind, not the odds of something in particular.
I have known people at both extremes.
One set of my grandparents died within hours of each other - one in hospital and one at home, both of natural causes.
I also know a woman who is now 101, who was widowed 57 years ago and has never remarried.
One needs to plan for all possibilities. Joint accounts work for me. If I am 85 or 90 or in poor health, the last thing I want is to have to wait around for probate and executors in order to access what was always intended as joint property.
Beware though of long GICs. Most FIs will let executor cash them early if purchaser dies, but with significant interest penalty.
I will be shortening my GIC ladder at some point in the next 3-4 years, and may start by gradually reducing the amount that goes into five year renewals. In my view, there is little point, at an advanced age, in having money you can't access relatively soon.
These decisions are a balancing act of priorities for each family.
10:24 am
September 11, 2013
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As an example, TD Direct Investing offers TD8150, 8155, 8157, 8159 as ISAs, each from a different (TD family) issuer so separate CDIC coverage. So if you don't mind the .25% rate, spouses with 3 accounts can safely hold $1.2M just at this institution, in addition to all the gics they offer as well. Using a number of discount brokers it's not hard to safely squirrel away a good chunk of change, if so inclined. But I get the impression the vast majority of people tend never to stop investing or chasing yield, even when they've achieved their goals, least that's how it seems to me.
8:10 pm
September 24, 2018
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julio said
Yes. My investment approach: The degree of risk one assumes should be proportional to ones inner peace. As everyone’s degree of tolerance to loss is different thus everyone’s comfortable asset allocation is different. The financial planning industry constantly plays on human greed and because it is not possible to know which asset class will have what return, they push the guessing game and call it asset allocation. You put your money where YOU can soundly sleep with it, knowing that when you miss the party you will miss the hangover too.
Well said !!!! Actually Excellent !!!
I don't have a single GIC, but thats just me.
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