|
^ Don't overthink it. The issuer of the GIC agrees to pay you "X" interest after "X" years. Since issuers are banks, it comes from the profit of normal operations of their business which largely is made up of lending money at a higher interest rates that they're paying out.tragic_ethos posted:I think main thing with GIC, you are getting your principal back with interest. When you’re getting a bond fund (or an ETF balancing some percentage of bonds and stocks), you will see the bond portion of portfolio reduce in value when interests rate increase. You can look at a bond ETF like ZAG after 2021/22 and see how that ended up impacted when rates bounced up. slidebite fucked around with this message at 18:01 on Mar 3, 2024 |
#
¿
Mar 3, 2024 17:58
|
|
|
|
| # ¿ May 15, 2024 09:36 |
|
|
Toalpaz posted:thats a really loving good deal for maple leaves, tbh. they're going to ruin all the mom and pops (fuckers) Thats 37.6 per maple leaf for under a hundred. Most budget places would have given you 43 per oz under a hundred just a few weeks ago.  Killingyouguy! posted:Why would interest rates going up mean the value goes down? Also does this mean I should opt for all-stock funds? Or, https://www.investopedia.com/ask/answers/why-interest-rates-have-inverse-relationship-bond-prices/ quote:Most bonds pay a fixed interest rate that becomes more attractive if interest rates fall, driving up demand and the price of the bond. Conversely, if interest rates rise, investors will no longer prefer the lower fixed interest rate paid by a bond, resulting in a decline in its price.
|
|
#
¿
Mar 3, 2024 18:22
|
|
|
Never been through it personally, but know a few that have. It's a big pain in the rear end that takes years to recover from. Is all of the debt in your name only? If you do go down that road, good luck. It sucks. But sometimes might be the only way forward.
|
|
#
¿
Mar 4, 2024 15:33
|
|
|
Like ^^ says, If its not sheltered, yes. A bank will issue you a T5 for a standard savings or checking (lol) and you need to claim that as part of your taxable income. If you have the room, keeping it in your TFSA in a GIC or ~something~ is probably better idea for tax implications. Anything else is basically a differed tax, which probably makes sense if you start withdrawing when you make less income (IE: retired). Or if you need it and take a gains hit (or loss) from a non-registered investment account.
|
|
#
¿
Mar 7, 2024 18:18
|
|
|
I have a question regarding "pension adjustments" and "RPP Contributions" on your T4. Is there a rule of thumb for how much those figures on your T4 impacts your RRSP room? Is it a 1:1 ratio in $$? For example, let's say you have an RRSP limit of $15,000 for 2023, but your pension adjustment is $10,000 and your RPP is $2000 on your 2023 T4. Does that leave you $3K of room to contribute? If not, is there an easy-ish way to ballpark it?
|
|
#
¿
Mar 20, 2024 20:49
|
|