Long term GICs | Page 2 | Motive Financial | Discussion forum

Norman1 said
... Valiant Trust Company ...

They don't take deposits. (Source.)

unforgettableid said

dentgal said
I'm maxed at Oaken, EQ, People's Trust, etc.

Even if you put just 10% of your net worth into some index mutual funds or ETFs, this (or might not) be beneficial for you.

Or, if you just want to dip your toe into the waters, you could invest much less. You could try investing only a tiny sliver of your net worth (e.g. $500⁠–⁠$1000) for just a year or two.

Loonie, I respectfully disagree.

Investing a tiny amount of money into a fund can help a person to learn and internalize an important lesson. This lesson is: after the markets fall, they seem to always bounce back.

Some people can't stomach investing 5% of their net worth. For these people, 1% or 0.5% might be wiser, and can help them to develop a stronger stomach.

unforgettableid said
Loonie, I respectfully disagree.

Investing a tiny amount of money into a fund can help a person to learn and internalize an important lesson. This lesson is: after the markets fall, they seem to always bounce back.

Some people can't stomach investing 5% of their net worth. For these people, 1% or 0.5% might be wiser, and can help them to develop a stronger stomach.  

Yes, I am aware of this, and I don't deny it.

The problem comes when and if, as they keep increasing their investment, they become convinced that they can't lose. Or they discover, during a downturn, that their stomach lining is not as thick as they thought, and they sell off at a bad time. Happens all the time.

My point is that a decision to invest this way and learning how to do it best is not a matter of getting our feet wet and getting used to the temperature and then deciding to get in deeper. It's not about desensitizing oneself, quite the contrary. It's about having a thorough understanding of risk and return. There is no law that says that because an investment has bounced back in the past, that it must do so again, ever, or in time for you to benefit. I hope things go well, because stability is easier to live with than chaos, but it's not guaranteed. As soon as I hear anyone suggest that an excellent track record is essentially a promise of future success, because success is seen as a predictor of success, all my red flags start waving.

I too am a senior and fortunately have enough finances to live out the rest of my life fairly comfortably.

It is fun for me to look around for best interest rates etc. on GICs. I like it too that I totally use the banks and credit cards without paying them a dime in interest and carrying costs!! Except for a mortgage when I was in my 20's and early 30's, I never have. The exception being for an investment in a rental property.

I agree with others that it would be wise to invest say between 1-10% of your portfolio in stock market/mutual funds and the like just to get your feet wet and learn more about the ins and outs of investing.

But when you get a certain age, and you know you are safe albeit really bored with the low interest rates, maybe it is best for you (and your spouses) to just live with that knowledge and not go through the anxiety and sleepless nights over any kind of financial risk.

As I have said before.......it gets to a point at my age ....if I play it safe my grandchild will for sure get "X" amount of dollars at the time of my death. If I risk investments.......she will either get more or less than that. So it is just a matter really of how much my "estate" will be worth.

I would rather know I can be frivolous once and awhile with purchases or holidays and not have to think I might regret it after I have lost in the stock market. I don't need to win anymore..........I just don't want to lose!!

Alexandra said
I think I am going to bite the bullet today and send some funds to my Motive Financial HISA and then purchase a 10yr term GIC at 2.5% with interest paid out annually. I called them yesterday and as long as you are 65 yrs old, you can do this. However you must phone them with that instruction once the funds arrive in the DISA.

Doing this just to even things out. I may even do this next year with my TFSA GIC's if the rate is still decent. I'll let that compound though ..... I guess.

Has anyone here did a "practice investing account" with RBC? They give you $100K free money and you can do pretend investments. Might be fun just to see how much one could have made in a certain period if they had used their own money  

I did a "practice investing account" with Scotia iTrade. They also give you 100K free money for pretend investments. Good whether you are a beginner or expert. Cannot setup dividend reinvestment with dividends. You need a live account for that.

10 year GIC's not sure when you should stop that long a term. My FI does not offer more than 5 years. Maybe up to 10% of your GIC's would be fine in 10 year.

hwyc said

Alexandra said in #4
I was just looking yesterday at the Motive 10/9/8/ yr GIC rates as well.

... if you wanted, you can get paid monthly (at Motive anyway) if you are over 65.

Hear you made a descision to bite the bullet in #32. However, on Motive website, it says GICs with a term of at least 12 months, customers over the age of 57 also have the option of having interest paid monthly into a Motive Savings account. ... here's also looking at the TFSA GICs w/monthly paid. In such low interest rate environment, earning interest tax free matters.  

I agree with you. GIC's within TFSA are better for tax reasons than non-registered GIC's. Interest payment frequency is unique to each individual. Have fun.

Rick said

My understanding is non-registered GICs ONLY that have the option to pay out monthly. TFSA GIC's have the option to cash out anytime @ 0% from start date, and choose between compounded interest or paid out annually. The RSPs are frozen until maturity.  

RIF GIC's withdrawals are interesting. Dec 31 determine how much is withdrawn the following year. The following year take proceeds from the GIC with the lowest interest rate. If not enough in that GIC pick the next GIC with the lowest interest rate. etc. Nothing wrong with creating a 10 year ladder in RIF. If you need additional funds remove the funds from the next maturing GIC.

hwyc said
Rick said in #36

Note taken, Rick. Here's continue searching for a FI willing to provide that option in the TFSA setup. ... just don't understand what motive got to lose by extending that from non-registered to TFSA, whereas the elders got everything to gain on the TFSA side.  

I checked my FI. When purchasing GIC in TFSA the interest is either compounded to maturity or paid annually. I will be purchasing a TFSA GIC sometime. I am happy with the available interest payment frequencies. Maybe you should wait until the TFSA savings account has enough cash to purchase longer term GIC's. Everyone is UNIQUE.