GIC or Savings Account?

GIC or Savings Account?I recently had two reasons to look up the going rates on GICs and savings accounts. I thought I’d share what I found with you today and raise the question: Is it worth it to put cash into a 5-year GIC when some savings accounts are paying almost as much while offering the same safety and more liquidity? Why GICs or Savings Accounts? I mentioned two reasons I was interested…

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The Stages of Financial Security to Ensure Your Financial Independence

The Stages of Financial Security to Ensure Your Financial IndependenceWe all want financial security, but, wow, it sure does seem like a long way off to most of us, doesn’t it? It’s hard to stay focused on such a distant goal, so I like to create mental milestones to reach, which are easier to get to and give some sense of satisfaction along the road to financial security.  It’s just breaking the larger goal up into more manageable chunks….

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Why banks aren’t paying higher interest rates

Why banks aren't paying higher interest ratesSo far in 2010, Canadians have opened 20 per cent more chequing and savings accounts than last year at this time. That amounts to about $100 billion in new deposits and Canada’s major banks have been fighting for a share of it with incentives, including cash rewards for customers opening new accounts. While consumers can get cash and travel points to open a new account, there is one conspicuous weapon…

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Ottawa backs down on tax-free savings account errors

Ottawa backs down on tax-free savings account errorsFinally, the government has come to its senses about the 70,000 letters sent to Canadians who made over-contributions to tax-free savings accounts or transferred them without the proper paperwork. In a statement issued this afternoon, the two ministers responsible for the new tax shelter said they recognized the confusion that resulted from lack of understanding of the rules. And they’re trying to make amends. If you received a request to…

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The Importance of Paying Attention to Financial Statements

The Importance of Paying Attention to Financial StatementsI’ll relate my experience to underscore the significance of paying attention to your finances – not just the saving and investing parts but also the all-important records of those money transfers/contributions. I contributed to my TFSA account for 2009 in May of that year and rested in content that I had been prudent in taking advantage of the newly introduced savings vehicle. Since financial institutions do not issue an official…

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At 55 – Is it Too Late For Retirement Planning?

At 55 – Is it Too Late For Retirement Planning?During my day job, I meet many clients to look at their personal finances. More precisely, my mandate is to create financial plans and help clients with more than $250,000 invested with the bank. So, most of them are in their 50s. Unfortunately, I come across a lot of people who don’t have a financial plan and have never discussed retirement planning. At one point, it’s like they feel that…

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Chuck it All and Buy GICs?

Chuck it All and Buy GICs?It’s possible to make a reasonable argument that the average investor would be better off investing in GICs than stocks and bonds. Unfortunately, David Trahair fails to make this argument well in his book Enough Bull: How to Retire Well Without the Stock Market, Mutual Funds, or Even an Investment Advisor. So, I’ll try to make it for him. The main argument in favour of investing in stocks is their…

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The Basics And Benefits Of Registered Retirement Savings Plans

The Basics And Benefits Of Registered Retirement Savings PlansWhat if there was a way that you could get the Canadian government to pay almost half of the money you needed to make an investment (be it for the purchase of stocks, mutual funds, guaranteed investment certificates, mortgages etc.). Then, when you’ve made money on that investment, through interest earned or capital gains, the government tells you that you don’t have to pay tax on it. Keep the profits,…

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Pay Yourself First: AutoMagic Bill Payments

Pay Yourself First: AutoMagic Bill PaymentsI was reading another site and saw that someone has written a book or is charging folks to learn how to make their personal finances automatic so in response to that, here are some simple ideas (for free (and thus worth every penny you paid for it)) to automate bill payment for your personal finances. I offer these ideas as a heuristic methodology, your mileage may vary, and with all…

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