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Email this5:29 pm
November 8, 2009
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so its coming down to rsp deadline... The market sucks...the mutual funds suck...interest rates suck.....
Where to stick some cash for RSP?
5:50 pm
I've been laddering my RSP deposits in GICs for the past three years since both interest rates and the markets tanked. Given I like to manage my own finances, I've simply moved my RSPs from RBC & ING to Achieva, where I've been a customer for over 10 years. They have consistently offered the highest return on their fixed GICs. While rates are certainly low in historic terms, I would have lost significant yields over the past three years if I had stayed in a high interest savings account. I also like that I can purchase my RSP directly on Achieva's online banking service, investing my money in whatever term I want (I usually spread my contribution over a 1yr term, 3yr term & 5yr term).
Just one fella's opinion.
6:08 pm
Hi-cap dividend payers should do well in the short to medium term. All the old retired farts out there are desperately seeking yield so their RRIFs don't run out before they do, and they ain't gonna find decent yields in GICs or the bond market. BCE is a solid Canadian hi-cap dividend payer (5.42% as of last Friday's close) although this is probably not the best time to buy that particular stock. Lots of other options out there. Or you can try an ETF or mutual fund that invests in dividend payers. That might be best if you've only got a small amount to invest.
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