GIC's are closing in on 5% FAST
- Thread starter Mfg Eng
- Start date
Yeah except inflation is 8.8% lol. I can see GICs even going higher
This inflation is short term and should wash out to what I am estimating 3.5 to 4% total for the year 2022. Next year I believe it will drop to 2.5-3% for the year. These are still pretty big numbers. Yes another month or two and the rates will definitely climb a good one and will be a good time to drop in a few dollars. I don't think the Band of Canada rate will jump up to the nearly 14% we saw in 1990 but do feel 8% is definitely possible.
If you get GIC's, get the cashable GIC .When the interest rate goes up, you can get a new GIC with a higher rate.
Thank-you FM, i appreciate it, i am trying to learn as much as i can swiftly to get stuff out of savings!!
If you're getting a GIC now you should definitely be able to get over 5% no matter the term.
Only issue is income on the GIC is taxed at 50%. Far higher than dividends or capital gains (holds true incorporated or not). Not an expert so please correct me if I'm wrong but I don't think there's a way to really shelter or offset the income from GICS - individual or incorporated.
But with enough principal it's still a gauranteed income
Only issue is income on the GIC is taxed at 50%. Far higher than dividends or capital gains (holds true incorporated or not). Not an expert so please correct me if I'm wrong but I don't think there's a way to really shelter or offset the income from GICS - individual or incorporated.
But with enough principal it's still a gauranteed income
Like Sorbate mentioned high interest savings accounts are the way to go right now. Same as unsheltered GIC's- the interest is income and is not taxed at a flat rate- that would be capital gains such as in selling a secondary house
I started Cashing out GICs
I think everyone playing the safe game and staying out of the stock market is going to regret it.
Still holding onto a good amount of cash incase stocks I want get cheaper. Inflation is so high 5% interest barely takes the edge off. And before anyone comments about the government numbers for inflation, save your breathe those are a lie.
I think everyone playing the safe game and staying out of the stock market is going to regret it.
Still holding onto a good amount of cash incase stocks I want get cheaper. Inflation is so high 5% interest barely takes the edge off. And before anyone comments about the government numbers for inflation, save your breathe those are a lie.
Now is a great time to move money into the stock market. The high interest savings account is used to park money for real estate only for me. Balance goes into the market in a unsheltered account. TSFA monies are in the market as well. Historical average of the markets is way above inflation so all should be well with a balanced portfolio.
My GIC rate as well as long as I'm in for a month. Would be higher if I locked in but don't want to
yeah I’m not seeing the stock market performing that well right now, up and down, so for now everything else that I plan to invest just sits in the interest account. It may be less, but at least I know I’ll never lose it.
Maybe if things start to do better I’ll move it over, but I made just as much in that account as I did on the stock market last year, or pretty much anyways.
Which have been doing well for you?
There is another thread in this forum that lists all the high dividend stocks.