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Email this4:34 pm
October 15, 2015
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I'm wondering what the benefits are keeping all your gics at the same brokerage as your equities versus another bank such as Hubert. I realize by going to someone like Hubert you are getting a lot higher rates but don't you have to take the rrif minimum from each account you have? Are there other benefits to having everything at a brokerage that off set the bad rates?
5:31 pm
February 24, 2015
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You are required to take the minimum % from each account. If you have a RRIF at Hubert that contains only GICs, my understanding is that Hubert is required to cash in a GIC partially, without penalty, to cover the minimum withdrawal.
On the other hand, if you have a brokerage account that contains GICs, stocks, cash, etc., you have more flexibility and more obligation. If you do not have enough in cash on RRIF payment day, you can decide which investments to sell. I think that the issuer(s) of the GIC(s) are not required to allow a partial cash in.
So if interest rates are falling, the brokerage account is attractive because you are not forced to cash in a GIC which is earning a higher rate than currently available.
12:16 pm
July 19, 2013
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Take a look at this article, you don't have to cash out, you can move the minimum requirement 'in kind'. https://www.theglobeandmail.com/globe-investor/investor-education/rrif-minimum-withdrawals-separating-fact-from-fiction/article19380686/
4:47 pm
February 24, 2015
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JW said
Take a look at this article, you don't have to cash out, you can move the minimum requirement 'in kind'. https://www.theglobeandmail.com/globe-investor/investor-education/rrif-minimum-withdrawals-separating-fact-from-fiction/article19380686/
Yes, "in kind" is an option, but I think that no FI will move part of a GIC as a RRIF withdrawal. If someone has done this successfully, I would be interested in hearing which FI. If you want to move out stocks in kind, I don't think you can move out partial shares. Mutual funds, yes, but in any case, the requirement is $ and presumably the correct number of units can be calculated to meet that requirement.
1:56 pm
July 19, 2013
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Edward Jones will do partial or fractional shares "in kind" but Questrade will only do full shares "in kind". When I was with EJ I took the full RRIF Annual Minimum Payment "in kind" to my Margin Account and $5500 to my TFSA. Now I am with Questrade I will do "in kind" in full shares and round-out with Cash. If the GIC falls below the Minimum Payment amount one could do it "in kind" and round-out the balance in Cash. Agree a partial GIC is not doable.
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