...so I accepted it.
From $3000 on one to $10,000 in a few minutes over the phone.
However....I hope I never have to rack up that kinda debt again.
I got inta trouble once on the credit cards.
Same time, I've found that having access to a decent amount of credit can sometimes be helpful/useful. ie - when the item is very pricey. And it avoids bank draft or wire fees, etc.
and it kinda saved me before. Because altho I had bad credit at one time, I had at least 1 credit card left for emergencies.
So...I have to discipline myself not to use too much credit too often.
I'll be more responsible this time...I promise.
Wow Joe. That's simply amazing
A whole 7 big ones
Mannnnn I feel excited just knowing I post on the same site as you
Quote from: JOE on December 13, 2023, 06:23:45 PM...so I accepted it.
From $3000 on one to $10,000 in a few minutes over the phone.
However....I hope I never have to rack up that kinda debt again.
I got inta trouble once on the credit cards.
Same time, I've found that having access to a decent amount of credit can sometimes be helpful/useful. ie - when the item is very pricey. And it avoids bank draft or wire fees, etc.
and it kinda saved me before. Because altho I had bad credit at one time, I had at least 1 credit card left for emergencies.
So...I have to discipline myself not to use too much credit too often.
I'll be more responsible this time...I promise.
Sweetie, they didn't want to do that. I had to co-sign because you are a credit risk. :soinlove:
josephine gonna buy a case of them poppers? :popcorn:
Quote from: JOE on December 13, 2023, 06:23:45 PMSo...I have to discipline myself not to use too much credit too often.
I'll be more responsible this time...I promise.
Good thing to do. People seem to have a problem with credit cards. One time I went into a bank to make a credit card payment (this was before smart phones) and the balance was a couple hundred bucks so I wrote a check for the full amount. I get to the window and hand it to the teller and say "I'd like to make this payment please".
She looks at it and her eyes get all wide... "Oh my god! You're paying off your credit card! Wow! Hey Jennie come look at this!"
She calls all the tellers over and they're like "Whoa! I wish mine was paid off so I could max it out again! This is amazing! I've never seen one paid off before! Oh you're so lucky!" with looks of amazement on their faces.
You would have thought I won the lottery or something.
Quote from: Oliver the Second on December 14, 2023, 04:36:43 PMGood thing to do. People seem to have a problem with credit cards. One time I went into a bank to make a credit card payment (this was before smart phones) and the balance was a couple hundred bucks so I wrote a check for the full amount. I get to the window and hand it to the teller and say "I'd like to make this payment please".
She looks at it and her eyes get all wide... "Oh my god! You're paying off your credit card! Wow! Hey Jennie come look at this!"
She calls all the tellers over and they're like "Whoa! I wish mine was paid off so I could max it out again! This is amazing! I've never seen one paid off before! Oh you're so lucky!" with looks of amazement on their faces.
You would have thought I won the lottery or something.
That is such a bad bullshit story you would think that Senile Joe wrote it.
I hardly use credit these days.
Quote from: Oerdin on December 15, 2023, 06:44:30 AMI hardly use credit these days.
I still use credit, but not nearly as much as I used to.
I got into trouble before by racking up too much cc debt, so I have to be careful this time. Just use it when needed, then pay it off.
Tho I had poor credit before, I still never went bankrupt and managed to pay down the previous debts.
I hear all this advice , especially from business people. that it's OK to fail, go broke whatever, a person can start over again. However, I think that's a pile of malarky. It's just a persistent myth to feed 'the machine' and rope some other sucker in. From those I've met who declared bankruptcy for most, life is never the same. They need workarounds to get through life. Have to resort to pay day loans or ones with very high interest. It's like a handicap that haunts them for the rest of their lives. Almost like losing an arm or leg.
About the only people I think who can afford to go broke are types like Donald Trump. Have friends in high places who can bail them out or bankroll them. Or they have so much debt that it fulfills the saying, "If you owe the bank $10,000, you're in trouble. But if the you owe the bank $10,000,000, they're in trouble."
I use credit but never more than 30% of the total liquid assets
this way if shit does hit the fan unsecured cards get fucked in favor of continuing the more important essentials
I have never had more than $5000 in credit card debt in my life and 90% of the time I paid it off ever two weeks to try to avoid the fees. The main type of long term debt I have held is mortgage debt but even that I try to minimize.
I use my credit cards too. I never pay interest because I pay before the due date. And I get cash back at the end of the year.
Quote from: DKG on December 15, 2023, 11:26:10 AMI use my credit cards too. I never pay interest because I pay before the due date. And I get cash back at the end of the year.
That is the way to do it.
I use credit cards for every purchase that I am able, unless I get a discount for paying cash.
The rewards build up.
Every card I use is a No Fee card.
Checking my wallet I have
a CIBC Visa Dividend Cash Back card...gives me straight cash back on my card...
a World Triangle card that gives "Canadian Tire Money" on the card...when I make a purchase at Canadian Tire with it, I use all the money that has been earned on the card...
a CIBC World card that is also my Costco membership card that gives me cash back on the card once per year...I am also an "Executive" member at Costco so I get a 2% cash back rebate cheque for Costco purchases to be used at Costco once per year and that cash back is always more than the cost of the membership...
an American Express card that gives me cash back right on the card once a year...
a Rogers World Elite Mastercard that gives me cash back once a year and free travel insurance when I use it to pay for a trip which can be worth hundreds of dollars for every trip.
And I pay every card off one day before the due date (just to make sure it gets processed in time) because I collect interest on the bank balance daily, so delaying the payment earns me a modest amount of interest.
My wife has a few different cards that gives her higher cash back rates at some stores she shops at.
My question to people is this: If you have the opportunity to use a No Fee credit card that offers Cash Back or some other reward, why not use it?
Quote from: TheProwler on December 15, 2023, 03:17:30 PMThat is the way to do it.
I use credit cards for every purchase that I am able, unless I get a discount for paying cash.
The rewards build up.
Every card I use is a No Fee card.
Checking my wallet I have
a CIBC Visa Dividend Cash Back card...gives me straight cash back on my card...
a World Triangle card that gives "Canadian Tire Money" on the card...when I make a purchase at Canadian Tire with it, I use all the money that has been earned on the card...
a CIBC World card that is also my Costco membership card that gives me cash back on the card once per year...I am also an "Executive" member at Costco so I get a 2% cash back rebate cheque for Costco purchases to be used at Costco once per year and that cash back is always more than the cost of the membership...
an American Express card that gives me cash back right on the card once a year...
a Rogers World Elite Mastercard that gives me cash back once a year and free travel insurance when I use it to pay for a trip which can be worth hundreds of dollars for every trip.
And I pay every card off one day before the due date (just to make sure it gets processed in time) because I collect interest on the bank balance daily, so delaying the payment earns me a modest amount of interest.
My wife has a few different cards that gives her higher cash back rates at some stores she shops at.
My question to people is this: If you have the opportunity to use a No Fee credit card that offers Cash Back or some other reward, why not use it?
Only broke bums like Joe would not use it, because he cannot qualify for a credit card.
Quote from: TheProwler on December 15, 2023, 03:17:30 PMThat is the way to do it.
I use credit cards for every purchase that I am able, unless I get a discount for paying cash.
The rewards build up.
Every card I use is a No Fee card.
Checking my wallet I have
a CIBC Visa Dividend Cash Back card...gives me straight cash back on my card...
a World Triangle card that gives "Canadian Tire Money" on the card...when I make a purchase at Canadian Tire with it, I use all the money that has been earned on the card...
a CIBC World card that is also my Costco membership card that gives me cash back on the card once per year...I am also an "Executive" member at Costco so I get a 2% cash back rebate cheque for Costco purchases to be used at Costco once per year and that cash back is always more than the cost of the membership...
an American Express card that gives me cash back right on the card once a year...
a Rogers World Elite Mastercard that gives me cash back once a year and free travel insurance when I use it to pay for a trip which can be worth hundreds of dollars for every trip.
And I pay every card off one day before the due date (just to make sure it gets processed in time) because I collect interest on the bank balance daily, so delaying the payment earns me a modest amount of interest.
My wife has a few different cards that gives her higher cash back rates at some stores she shops at.
My question to people is this: If you have the opportunity to use a No Fee credit card that offers Cash Back or some other reward, why not use it?
My main concern is that the credit card companies change their terms all the time. If to many people are smart customers avoiding fees and charges then they just change the rules in order to fuck over more. The banks have whole departments of MBAs writing rules changes to try to trip customers up and I am not big headed enough to think I will always put smart them.
Quote from: Oerdin on December 15, 2023, 11:14:00 AMI have never had more than $5000 in credit card debt in my life and 90% of the time I paid it off ever two weeks to try to avoid the fees. The main type of long term debt I have held is mortgage debt but even that I try to minimize.
Jo Jo finds this post that is the norm for most adults informative. How did he make it to his twilight years.
He's cute though.
Sadly, there are a ton of idiots out there who have no clue about proper finances or the need for savings. There are tons of people making six figures who are living paycheck to paycheck because they are too stupid to budget and figure out the difference between a need or a want.
Quote from: Oerdin on December 15, 2023, 04:44:09 PMMy main concern is that the credit card companies change their terms all the time. If to many people are smart customers avoiding fees and charges then they just change the rules in order to fuck over more. The banks have whole departments of MBAs writing rules changes to try to trip customers up and I am not big headed enough to think I will always put smart them.
They can afford to pay the 1, 2, or 3% because they charge the merchant more than that. I have been using no fee credit cards with rewards for over 30 years and never had a rule change "trip me up".
The credit card company makes money on each and every transaction. They actually charge higher fees to the merchant for the cards with higher rewards.
In the big picture, the merchant pays the fees, so their prices have to be higher than if they did not accept credit cards. In the end, the customer ends up with higher prices.
Quote from: Oerdin on December 15, 2023, 08:00:09 PMSadly, there are a ton of idiots out there who have no clue about proper finances or the need for savings.
Do not take that personally, Joe.
Quote from: TheProwler on December 15, 2023, 08:07:03 PMDo not take that personally, Joe.
Well, I just got approved for another Credit Card today, Prowler.
A US $ Mastercard with a $9,000 US credit limit.
However....I never wanted that much.
I wish they had just issued a $500 credit limit.
I woulda just asked for $500 if they had allowed me to specify a limit.
I just wanted it for small online purchases like eBay.
Or maybe when going down to the US for shopping or travelling.
Sure as hell Don't wanna buy a car with it!
They say the average American/Canadian is deep in cc debt.
But I don't wanna follow them there.
Frankly, these credit card approvals are getting scary.
I def don't wanna add anymore at this time.
I'm not gonna accept any more offers from these companies.
Still, aside from making purchases in US$, I suppose a US Credit card is useful for doing/conducting business in the US with American customers.
Might use it in the future. But if I don't, I'll just close the account.
I probably won't use it much cuz the US Dollar is very expensive/high.
Quote from: JOE on December 15, 2023, 08:22:00 PMStill, aside from making purchases in US$, I suppose a US Credit card is useful for doing/conducting business in the US with American customers.
How are you going to use it to conduct business with American customers, Joe?
Quote from: TheProwler on December 15, 2023, 08:37:24 PMHow are you going to use it to conduct business with American customers, Joe?
I dunno.
Buy stuff at auctions?
Haven't quite decided yet.
But what I know is that a lot of countries, especially in Latin America overwhelmingly accept the US dollar over other currencies. This has been told to me from people from there. So at least for travelling, a USD Mastercard could be very useful, Particularly in emergencies when no on other currency might do.
Quote from: JOE on December 15, 2023, 08:41:12 PMBuy stuff at auctions?
How is "Buying stuff at auctions" "conducting business with American customers"?
If
you are buying stuff,
you are the customer.
Also, you dingbat, you can use Canadian credit cards in other countries. They just do a conversion of Canadian dollars to their local currency.
Quote from: TheProwler on December 15, 2023, 08:49:24 PMHow is "Buying stuff at auctions" "conducting business with American customers"?
If you are buying stuff, you are the customer.
Also, you dingbat, you can use Canadian credit cards in other countries. They just do a conversion of Canadian dollars to their local currency.
Old Joe is seventy years old and he doesn't know this shit.
I find the cc often get better conversion rates than actually changing currency.
Quote from: Oerdin on December 16, 2023, 12:53:43 AMI find the cc often get better conversion rates than actually changing currency.
I noticed that too.
Quote from: Herman on December 15, 2023, 09:52:52 PMOld Joe is seventy years old and he doesn't know this shit.
I guess driving a fuckin' limo is not really the great educational experience Joe led everyone to believe.
Haha!
Quote from: TheProwler on December 15, 2023, 08:49:24 PMHow is "Buying stuff at auctions" "conducting business with American customers"?
If you are buying stuff, you are the customer.
Also, you dingbat, you can use Canadian credit cards in other countries. They just do a conversion of Canadian dollars to their local currency.
...I was thinking that a US credit card might be useful for buying goods/items at auctions when needed, and then re-selling them, Prowler.
....or using a US cc to buy wholesale goods and then re-sell them. Hopefully for a profit.
While I realize that wholesalers offer lines of credit, seems that a cc is the same thing. eg 30 days NET. And this might be useful when buying from US companies or those which transact in US dollars.
Anyways, it's just an idea.
Quote from: Oerdin on December 16, 2023, 12:53:43 AMI find the cc often get better conversion rates than actually changing currency.
Well, Oerdin, I sure get dinged heavily anytime I buy on eBay where transactions are done in US dollars using a credit card/PayPal.
Actually, I discovered one time that when I bought from an Australian merchant, it was much cheaper to buy in Australian dollars than American. They gave me an option to choose the currency, so I chose Australian. And it was like...10 % cheaper.
so, I thought I might try the approach of paying for items with a US cc, and then on my end, got to some place with good currency conversion rates, convert Canadian dollars into US, go to the bank and just pay them with the converted money when it comes time to pay the bill.
Outfits like PayPal/eBay ding the buyer 2-3% if they convernt.
They make so much profit off of their PayPal company and charging currency conversions.
I use my credit cards for almost all purchases.....I buy a lot of clothes online..
And I accumulate free money from my plastic.
Quote from: JOE on December 16, 2023, 11:00:42 AM...I was thinking that a US credit card might be useful for buying goods/items at auctions when needed, and then re-selling them, Prowler.
....or using a US cc to buy wholesale goods and then re-sell them. Hopefully for a profit.
While I realize that wholesalers offer lines of credit, seems that a cc is the same thing. eg 30 days NET. And this might be useful when buying from US companies or those which transact in US dollars.
Anyways, it's just an idea.
Again, you communication-impaired simpleton, you can use Canadian credit cards to buy things in other countries, including the USA.
Quote from: JOE on December 16, 2023, 11:05:05 AMWell, Oerdin, I sure get dinged heavily anytime I buy on eBay where transactions are done in US dollars using a credit card/PayPal.
Actually, I discovered one time that when I bought from an Australian merchant, it was much cheaper to buy in Australian dollars than American. They gave me an option to choose the currency, so I chose Australian. And it was like...10 % cheaper.
so, I thought I might try the approach of paying for items with a US cc, and then on my end, got to some place with good currency conversion rates, convert Canadian dollars into US, go to the bank and just pay them with the converted money when it comes time to pay the bill.
Outfits like PayPal/eBay ding the buyer 2-3% if they convernt.
They make so much profit off of their PayPal company and charging currency conversions.
Pay with your Canadian credit card, Joe, and EBay or wherever will just charge you the price in US dollars. The credit card company will do the conversion.
You sure seem to be willing to do a lot of work, like going to a low-fee currency conversion place, for a small slice of a percentage.
In business, time is money, Joe.
Quote from: TheProwler on December 16, 2023, 02:45:11 PMPay with your Canadian credit card, Joe, and EBay or wherever will just charge you the price in US dollars. The credit card company will do the conversion.
You sure seem to be willing to do a lot of work, like going to a low-fee currency conversion place, for a small slice of a percentage.
In business, time is money, Joe.
Adults should know these things. Joe is boy in a wrinkly sixty five year old body.
Quote from: TheProwler on December 16, 2023, 02:45:11 PMPay with your Canadian credit card, Joe, and EBay or wherever will just charge you the price in US dollars. The credit card company will do the conversion.
You sure seem to be willing to do a lot of work, like going to a low-fee currency conversion place, for a small slice of a percentage.
In business, time is money, Joe.
Well...doesn't the credit card company also ding a user for currency conversions, Prowler?
I don't see how they couldn't or wouldn't. It's profit for them.
Just like that friggin' eBay or PayPal. I'd find that they would take 2% or so on currency conversions. That's why I'd rather just pay in USD on purchases made from US businesses.
Quote from: TheProwler on December 16, 2023, 02:06:38 AMI guess driving a fuckin' limo is not really the great educational experience Joe led everyone to believe.
Haha!
He doesn't drive a limo. He made that up too and got caught in his lie.
Quote from: Herman on December 17, 2023, 09:29:10 PMHe doesn't drive a limo. He made that up too and got caught in his lie.
For real?
Joe is bizarre.
Quote from: TheProwler on December 17, 2023, 11:26:23 PMFor real?
Joe is bizarre.
I just bought over $4,000 worth of pure Gold today, Prowler.
Do you think it was a wise purchase or investment?
Quote from: JOE on December 17, 2023, 11:43:54 PMI just bought over $4,000 worth of pure Gold today, Prowler.
Do you think it was a wise purchase or investment?
I regularly trade $20-100K of stock. $4K is chump change.
I am curious though, Liar Joe. It was not even 9am when you posted that. Where did you buy the gold before 9am?
Quote from: TheProwler on December 18, 2023, 01:05:44 PMI regularly trade $20-100K of stock. $4K is chump change.
I am curious though, Liar Joe. It was not even 9am when you posted that. Where did you buy the gold before 9am?
Joe lies for attention. What a waste of his time and ours.
Quote from: TheProwler on December 18, 2023, 01:05:44 PMI regularly trade $20-100K of stock. $4K is chump change.
I am curious though, Liar Joe. It was not even 9am when you posted that. Where did you buy the gold before 9am?
Jo Jo likes to fib. He is still cute.
Quote from: TheProwler on December 18, 2023, 01:05:44 PMI regularly trade $20-100K of stock. $4K is chump change.
I spent $100,000 on a 12 month term GIC last week at 6% Prowler.
Do you think that was a good investment?
It matures in 1 year.
Quote from: TheProwler on December 17, 2023, 11:26:23 PMFor real?
Joe is bizarre.
He is frickin weird. Ya, he got caught by a former owner of this place. Everything he posts is bullshit. And he never researches his lies like today with the gold being too heavy to ship.
Quote from: Herman on December 18, 2023, 09:54:43 PMHe is frickin weird. Ya, he got caught by a former owner of this place. Everything he posts is bullshit. And he never researches his lies like today with the gold being too heavy to ship.
It was joke, man!
In which case you been caught in your own b-shite too, Herm!
I'd say ya stepped in the cow pies too often.
I always joke with that Lokmar character anyway
Back when I first saw posts from Joe, I realized within only a couple posts that he was full of shit.
But I did not understand just how much of a real life loser he is....
Joe, do you hate yourself?
Be honest.
Quote from: TheProwler on December 19, 2023, 02:16:08 AMBack when I first saw posts from Joe, I realized within only a couple posts that he was full of shit.
But I did not understand just how much of a real life loser he is....
Joe, do you hate yourself?
Be honest.
I'm gonna git another GIC tomorrow for $100,000 at 5.75% Prowler.
do you think that is a good investment/wise decision?
I'm buyin' a lotta gold too. Preparing fer Hard Times, eh.
I keep hearing the stock market is gonna crash in 2024 or 25, eh?
what do you think, Prowler?
is that true?
You boring fuck.
Quote from: TheProwler on December 19, 2023, 02:50:37 AMYou boring fuck.
And after that I was thinkin' of getting another GIC for $50,000 Prowler.
I'm concerned that we may be on cusp of Hard Times, Prowler.
I believe as some economists and leading business minds, that 2024 will be a difficult year. there could be a correction in the stock market, eh?
so it's better ta put the money in a safe place for the time being.
What do you think...Prowler?!
Speak up Boy!
I'm gettin a lotta gold in case things crash real hawd, Pwohlah
Gold 'n cash...best place ta be right now
Anyways, here's the $4000 worth of gold I bought the other day:
(https://i.ebayimg.com/images/g/0YIAAOSwB-FjEkEZ/s-l1600.jpg)
Check it out, Prowler.
Got the weights listed too, eh?
Quote from: TheProwler on December 19, 2023, 02:16:08 AMBack when I first saw posts from Joe, I realized within only a couple posts that he was full of shit.
But I did not understand just how much of a real life loser he is....
Joe, do you hate yourself?
Be honest.
Everything he posts are lies. He has never been in a limo, let alone drive one. It amuses him for some reason only he gets.
I hope josephine installed a rotisserie in his moms casket! Her money is just about all gone now!
Quote from: Lokmar on December 19, 2023, 11:39:49 AMI hope josephine installed a rotisserie in his moms casket! Her money is just about all gone now!
Difference betweem me 'n you/TheProwler is....that I buy things that can be re-sold....Lokmar!
I can always re-sell the stuff I bought at or near the price I paid for 'em Bud!
Like I said...Gold never grows Old....cuz it can always be re-sold....Lokmar!
Not like the Prowler's ultraexpensive cars or yer bullets, Bud.
Jeez fer all the money yeh spent on bullets, you coulda bought several bars of silver or ounces of Gold, eh?
The stuff I buy preserves wealth, not wastes it.
Quote from: JOE on December 19, 2023, 12:00:55 PMDifference betweem me 'n you/TheProwler is....that I buy things that can be re-sold....Lokmar!
I can always re-sell the stuff I bought at or near the price I paid for 'em Bud!
Like I said...Gold never grows Old....cuz it can always be re-sold....Lokmar!
Not like the Prowler's ultraexpensive cars or yer bullets, Bud.
Jeez fer all the money yeh spent on bullets, you coulda bought several bars of silver or ounces of Gold, eh?
The stuff I buy preserves wealth, not wastes it.
My house is worth over $1 million and I have several million dollars in investments, Senile Joe.
The difference between you and me is that I can buy things like sports cars for
enjoyment without worrying about their value depreciating.
Quote from: JOE on December 19, 2023, 12:00:55 PMDifference betweem me 'n you/TheProwler is....that I buy things that can be re-sold....Lokmar!
I can always re-sell the stuff I bought at or near the price I paid for 'em Bud!
Like I said...Gold never grows Old....cuz it can always be re-sold....Lokmar!
Not like the Prowler's ultraexpensive cars or yer bullets, Bud.
Jeez fer all the money yeh spent on bullets, you coulda bought several bars of silver or ounces of Gold, eh?
The stuff I buy preserves wealth, not wastes it.
First off josephine, when the shit hits the fan, my guns and bullets can literally secure me ANYTHING! My factory built race car was bought for fun and enjoyment. IDGAF about the investment part of it. Still, this car will be worth what I paid for it in another 10 years. Maybe more.
Quote from: Brent on December 19, 2023, 04:05:46 PMYou aren't entertained by his lies?
Even his lies are boring.
He should check for a heartbeat.
Quote from: TheProwler on December 19, 2023, 04:22:38 PMEven his lies are boring.
He should check for a heartbeat.
His lies are as stale as month old bread. But, he is sticking with this type of trolling.
Quote from: Brent on December 19, 2023, 04:05:46 PMYou aren't entertained by his lies?
He reminds me of Frisby :t2723:
Quote from: JOE on December 19, 2023, 03:01:35 AMAnd after that I was thinkin' of getting another GIC for $50,000 Prowler.
I'm concerned that we may be on cusp of Hard Times, Prowler.
I believe as some economists and leading business minds, that 2024 will be a difficult year. there could be a correction in the stock market, eh?
so it's better ta put the money in a safe place for the time being.
What do you think...Prowler?!
Speak up Boy!
Honeybunch, what did I tell you about fibbing to strangers. That is why you have trouble making friends Sweetie.
Quote from: Thiel on December 19, 2023, 09:50:31 PMHoneybunch, what did I tell you about fibbing to strangers. That is why you have trouble making friends Sweetie.
Tell your boyfriend that GIC rates have dropped and will drop further in 2024. Pretending he has fifty grand to invest, in something that will not be a good investment is stupid. Tell your boyfriend to do some homework before he makes shit up.
He did say his mother passed away so maybe he is 2asting his inheritance?
Quote from: Herman on December 19, 2023, 10:46:56 PMTell your boyfriend that GIC rates have dropped and will drop further in 2024. Pretending he has fifty grand to invest, in something that will not be a good investment is stupid. Tell your boyfriend to do some homework before he makes shit up.
In late 2020, major banks were offering 5-year guaranteed investment certificates (GICs) with rates of less than 1%. Now, just three years later, bank GIC rates for 5-year terms are over 4%. Some credit unions and trust companies are offering rates over 6% for short-term GICs, though 4- and 5-year rates are just under 6%.
It is uncommon to see long-term rates lower than short-term rates. This is a situation called an inverted yield curve. It signals expectations that interest rates will fall in the future. It can also forecast a recession, which tends to result in lower interest rates to stimulate a weakening economy.
With interest rates on the verge of falling, bonds are a better investment. If interest rates fall in 2024, and they almost certainly will, bonds could perform well, rising as rates decline.
The weighted average yield to maturity for the FTSE Canada Universe Bond Index is about 4.6% currently. The duration for the index is about 7.1 years. Duration measures how responsive a bond or a bond index is to interest rate changes. It is similar to a bond's term to maturity but is adjusted based on the forecasted cash flows from interest payments.
If interest rates fall by 1%, a bond or bond index with a 7.1-year duration should rise by about 7.1%. As a result, if rates do fall in 2024, bonds could potentially provide double-digit returns between their price appreciation and their yield.
Longer term bonds could perform even better. The longer the duration, the more the potential upside if rates fall.
The point? Longer term GIC rates have already started to fall. If rates do in fact fall, bonds could do very well.
Quote from: Oerdin on December 20, 2023, 10:29:26 AMHe did say his mother passed away so maybe he is 2asting his inheritance?
I think that is the second or third time his mother passed away over the past decade.
If you're buying a GIC or bond in a tax-sheltered account, the tax implications do not matter. Interest income in a registered retirement savings plan (RRSP) or tax-free savings account (TFSA) is tax-free, although RRSP withdrawals are eventually taxable.
If you are considering a GIC in a taxable account like a personal non-registered account or a corporate investment account, tax is a factor.
Here in Ontario, an investor with $100,000 of income earns a dollar of interest income, they pay a marginal tax rate on that dollar of about 31%. So, buying a 6% GIC leaves only about 4.1% after tax.
If that same investor bought Canadian stocks and earned a 6% return with 2% from dividends and 4% from capital gains, selling after a year, the tax would be less. The tax rate on the dividend income would be about 9% and on the capital gain would be about 16%. The after-tax return would be about 5.2%, over 1% higher than the GIC investor earning the same 6%.
Depending on the dollar value of the GIC or stock, the income could push the investor into a higher tax bracket than the marginal rates referenced above, but the outcome would be similar, with stocks being more tax efficient. The tax savings for stocks over GICs would also apply in other provinces.
As a result, a stock investor could earn a lower rate of return than a GIC investor in a taxable account and still keep more of their after-tax return. Stocks generally return more than GICs or bonds over the long run, despite the year to year volatility. This is an important consideration for a GIC investor when tax is considered. After all, it is your after-tax return that really matters.
Quote from: Herman on December 19, 2023, 10:46:56 PMTell your boyfriend that GIC rates have dropped and will drop further in 2024. Pretending he has fifty grand to invest, in something that will not be a good investment is stupid. Tell your boyfriend to do some homework before he makes shit up.
He didn't think through his latest look at me, I am an attention starved liar story.
Quote from: Herman on December 19, 2023, 10:46:56 PMTell your boyfriend that GIC rates have dropped and will drop further in 2024. Pretending he has fifty grand to invest, in something that will not be a good investment is stupid. Tell your boyfriend to do some homework before he makes shit up.
This is why I earn and handle the money in our relationship, not Jo Jo.
Quote from: DKG on December 20, 2023, 10:38:15 AMIf you're buying a GIC or bond in a tax-sheltered account, the tax implications do not matter. Interest income in a registered retirement savings plan (RRSP) or tax-free savings account (TFSA) is tax-free, although RRSP withdrawals are eventually taxable.
If you are considering a GIC in a taxable account like a personal non-registered account or a corporate investment account, tax is a factor.
Here in Ontario, an investor with $100,000 of income earns a dollar of interest income, they pay a marginal tax rate on that dollar of about 31%. So, buying a 6% GIC leaves only about 4.1% after tax.
If that same investor bought Canadian stocks and earned a 6% return with 2% from dividends and 4% from capital gains, selling after a year, the tax would be less. The tax rate on the dividend income would be about 9% and on the capital gain would be about 16%. The after-tax return would be about 5.2%, over 1% higher than the GIC investor earning the same 6%.
Depending on the dollar value of the GIC or stock, the income could push the investor into a higher tax bracket than the marginal rates referenced above, but the outcome would be similar, with stocks being more tax efficient. The tax savings for stocks over GICs would also apply in other provinces.
As a result, a stock investor could earn a lower rate of return than a GIC investor in a taxable account and still keep more of their after-tax return. Stocks generally return more than GICs or bonds over the long run, despite the year to year volatility. This is an important consideration for a GIC investor when tax is considered. After all, it is your after-tax return that really matters.
You should only have GIC's in your TFSA. Until early November, Scotiabank was offering a 5 year, 5.4% GIC.
They also had another one that was market based. It guaranteed a minimum 15% and could go up to 55% over a 5 year term.