At what long-term rates would you commit the bulk of your portfolio to fixed income | Page 2 | RRSPs and RRIFs | Discussion forum

Thank you! I am getting BMO to match at 5.1% paid monthly, appreciate the comparable with Motive. My main reasoning is that I think there are huge demographic head winds 10 years out for Real Estate and that’s all I know. I believe the market is about 50% long no matter what money but there are huge potential problems on the horizon, again credit is more important then cash in my opinion interest rates will go lower with unemployment going higher. These rates are great, I am 42 and want to focus on my health and young daughter, survive until 2025, remortgage one home and buy 10. I am 50% Real Estate and 50% GICS. Kind regards

My longest are 3 years, but most of the 3 year GICs were bought 2 years ago when I was doing a five year ladder.
I am disproportionately weighted in one-years.
For the rest of this year, I won't buy anything longer than 2 years max. And I have significant cash, which will remain accessible.
This is about all I can stomach right now, given the state of the world and my age!
I remain concerned about USD and CDN$ future purchasing power but don't know that anything else would be more reliable.

Just because rates are higher now than they have been in recent years doesn't mean they can't or won't go higher. I remember when rates were 20%+.

I'm 76. I like to keep my money handy. I might want to spend it!

Inflation is proving very difficult to tame. At first we were told by BoC that it was "temporary". Remember? I wrote then on this forum that I didn't think it was temporary.

The effects of climate change and global political instability will mean life will become more expensive by increasingly large margins. These massive changes are already happening faster than we expected.
Only a few months ago, inflation was declared to be dying and rates were said to have peaked. Now, we have clear rate inversion, which usually means that short is better.

You don't have to agree, but this is my view at this time.

I can think of lots of things I might do with the money, but we all have different circumstances and understandings of what the future is likely to bring.
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As I've said before, I believe everyone should have a clear and informed understanding of why annuities are or are not suitable for them.

Loonie said
Just because rates are higher now than they have been in recent years doesn't mean they can't or won't go higher. I remember when rates were 20%+.

I'm 76. I like to keep my money handy. I might want to spend it!

You don't have to agree, but this is my view at this time.  

I would like to know how much debt population had during 20% interest rates vs now.
This is reminiscent of summer 2007 to me.

savemoresaveoften said

However it seems like you are also trying to maximize your interest income, to try to time to capture higher rates. Since you mention you are 76, isn’t trying to time the market to capture the highest rate a bit unnecessary ?  

I think it depends on the individual. I could have another 25 to 35 years ahead of me if genes were the deciding factor. Who knows? I have to be prepared for the possibility that I might not make it to 80 but also that I might survive well past 100. It's not much different than being 40.

I enjoy getting a good bang for my buck. It's fun, even if I never use or need all the money.
I am using deposit brokers more frequently now. I find it easy and efficient. I keep most of my cash in accounts that have companion chequing, for quick access. The broker sends a courier to pick up my cheque.

My concessions to older age are to reduce use of FIs that don't offer chequing, reduce length of ladder, and to funnel more money through deposit broker. Works for me, but always subject to change if I get a better idea.

I don't give a lot of thought to timing the market. I just look for choices that meet my other criteria. But this doesn't mean I'm not interested in market trends or alert to protecting my assets.

There is no one answer that suits everyone.

NCC1701Z said
"The broker sends a courier to pick up my cheque."

Why would you need a cheque?  

The deposit broker requires payment by cheque. They are not a bank and don't hold our money. I think they then deposit the cheque in the account of the issuer.

fat_dog said
I do not know about “ don't hold our money. “
I was at the office of gic direct in winnipeg trying to buy a gic from MACAN . and they were telling me I had to make the cheque payable
to gic direct . when I asked what they would do with the cheque . I was told gic direct would cash in an account they had at C.I.B.C bank
and in a few day they would buy the G.I.C. from macan

so g.i.c direct was going to hold the money .

and the cheque was going to be payable to G.I.C. DIRECT  

I have dealt with 2 deposit brokers over the years. My cheques are always written to either the issuer or myself, and there have been no problems. I have NEVER been asked to write a cheque to the broker. Without solid corroboration, I don't find your story credible.