Quote:Because the federal govt is more likely to bail out CDIC than CIPF or these provincial credit unions' self-insurance.
Originally posted by investpro
Why would CDIC coverage be safer?
In the case of a complete economic system capitulation, neither of these agencies will have enough money to pay everybody out.
However, there is a very good likelihood that the fed will bail out CDIC rather than CIPF or provincial credit unions.
Of course, getting your money back in your hands could take several months and will be a very painful process for sure.
No one has lived through a previous CDIC or FDIC bail out to it's hard to say what it will be like.
There are folks who were around during the 1929 crash when this kind of thing happened, but the deposit insurances did not exist then and small investors simply lost their savings.
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"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."
-- Rhett Butler in "Gone with the Wind"
Quote:
Originally posted by pratickm
Quote:I know of CIPF "insurance" for upto $1M.
Originally posted by investpro
Hi PratickM
Just wanted to know if you are familiar with 'insured' money over and above the CDIC amount of $100,000
I don't know about individual credit union guarantees.
Your information may be quite correct, I have no experience with credit unions.
So if I had two GICs - one for C$60,000 and another for US$50,000 in say Scotibank, how much of it is insured?
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Chandresh
Advice is free – lessons I charge for!!
Quote:Assuming both products are insured, you should have 100% coverage in this case.
Originally posted by chandresh
So if I had two GICs - one for C$60,000 and another for US$50,000 in say Scotibank, how much of it is insured?
The CAD $60,000 (if it's a regular GIC) is covered 100%.
Is the USD GIC insured?
If so, you are covered upto CAD $100,000.
By some freak event, if the CAD becomes less than one half of the USD such that your USD $50,000 becomes > CAD $100,000, then you only have coverage upto CAD $100,000.
That's my guess - the bank should be able to answer more accurately.
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"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."
-- Rhett Butler in "Gone with the Wind"
Location: carl sagan's universe
Posted on: 24-10-08 21:34:26
Quote:
Originally posted by pratickm
Quote:Assuming both products are insured, you should have 100% coverage in this case.
Originally posted by chandresh
So if I had two GICs - one for C$60,000 and another for US$50,000 in say Scotibank, how much of it is insured?
The CAD $60,000 (if it's a regular GIC) is covered 100%.
Is the USD GIC insured?
If so, you are covered upto CAD $100,000.
By some freak event, if the CAD becomes less than one half of the USD such that your USD $50,000 becomes > CAD $100,000, then you only have coverage upto CAD $100,000.
That's my guess - the bank should be able to answer more accurately.
Hi Chandresh,
USD deposits are not CDIC guaranteed.
Only deposits in CAD are CDIC guaranteed.
Good ol' Desitiger commented on this when he was singing the virtues of the US.
In the US deposits in all major currencies are guaranteed incl the Singapore Dollar which as you know has been a strong currency for many years.
Mortgage Pay down Vs RRSP
I guess we should discuss about original topic. MORTGAGE PAYDOWN IS BETTER OR RRSP
You guys can make new topic about good investment.
I really wanna know about compassion to take decision but I m totally confuse since topic has gone on different direction.
You guys seems are very smart on investment but there is people like me who dosnet know much so wanna make it simple investment. So please direct us on simple way “ what is better mortgage pay down or RRSP ?
Quote:Everybody's situation is different and there cannot be a blanket answer for everybody.
Originally posted by meetonline
So please direct us on simple way “ what is better mortgage pay down or RRSP ?
If you have to give us more information about your situation.
- Earlier you said your interest rate is 4.7 - is that correct?
- Is it fixed? For how long?
- What is your mortgage principal balance?
- What is your marginal tax bracket (to determine refund from RRSP)
- What is your age?
- How do you plan to allocate the RRSP?
It's not just about "doing" RRSP - it's more about what you hold inside it.
- How long you plan to live in the current house?
- After that do you plan to upscale or downscale?
- Based on your investment knowledge, how much annual return do you think you can generate for yourself?
So you see, it's not simple - there are a lot of factors.
If these questions confuse you, or you find it hard to come up with concrete answers to these, I suggest your best strategy is to pay down your mortgage.
If you are not able to plug numbers into a spreadsheet and do various scenario calculations, it is much much safer for you to pay down your mortgage.
That way you get a zero risk, guaranteed immediate return on your money.
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"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."
-- Rhett Butler in "Gone with the Wind"
I may be not smart enough as you are but yes I can plug numbers into a spreadsheet and do various scenario calculations my self.
My point was instead of talking about CORE issue Mortgage V/S RRSP , you guys have started whole different topic.
Mind you, not every one is smart like you guys so there should be simple compression,
It’s always helpful to know various options but there should be separate topic.
