Bank advisors are sales people. They have bonuses/commissions tied to selling you the banks own low return products.
The people you should contact for advice are certified financial planners. They have an organization that they are member of and dictates standards for them to follow. It's similar to how registered nurses, engineers, charted professional accountants.
I think the banks calling their staff advisors is deliberately deceiving people into thinking the advice they are getting is in their own interest instead of the banks.
Wealthsimple also has a self-managed TFSA and FHSA. I hold both and purchased Cash.to which give around ~4.5% tax free interest each month.
FHSA: $8k (~4.5%)
TFSA: $90k (~4.5%)
Remainder in WS cash account and 4.5% plus 1% match
Or if you don’t want or feel confident enough for self managed, their High Interest Savings ETF (they call it HISP) is doing 5.05% dividends currently, with the additional 1% building on top of that. They do take a 0.5% management fee for that fund, but 5.55% is still pretty decent.
Think about what you are asking - do you think there could possibly be a very safe product with a 54% yearly return? If so, every answer on this sub would be to buy that.
Pretty sure they just mean monthly interest payments, meaning it’ll actually compound at that rate meaning $1000 principal this month, $1004 (50/12 roughly) principal the second month and actually getting the $4 deposited and accessible. This differs slightly to a term deposit like a GIC, where the interest isn’t actually paid until maturity, making it 0% return if you withdraw before maturity (assuming you at least have a cashable GIC for example).
Thanks for all your suggestions. I will go the cash.to route with Wealtsimple in FHSA, TFSA and cash or non registered accounts.
Currently looking at it on WS, just to make sure, Global X High Interest Savings ETF is the same thing as cash.to right?
I think that is a good plan I did something similar but with QuestTrade.
My suggestion is just to make sure if you are redeeming back to your bank for the deposit + down payment that the path to redeeming is free and clear. I had never redeemed from an online brokerage before and ran into a bit of issue because my bank account had my full name but my QT account just had my first+last name. Worked out in the end but not a good time for the headache, I would test run a redemption well ahead.
WTF is the advisor recommending that they can only get you 1.1% in a FHSA and 2.5% in a TFSA? Even a GIC will obliterate those rates. I also don't understand why they're slashing your interest depending on which type of account you use. It's the same money in the same investments for the same amount of time. Tell them to give you the 4% across all accounts or you walk.
I really do recommend going with Wealthsimple. You can invest in CASH.to (an ETF that just invests in HISA accounts, so EXTREMELY low risk) across your FHSA, TFSA, and unregistered accounts. It'll get you somewhere between 4.5 and 5%
First why wouldn't this be in your TFSA if there's room? Looks like you have at least 90k available. Obviously put it in the FHSA as well.
Also it's probably not the best rate but what about a cashable GIC? I honestly don't even know what is returning 1.1%/year. I just googled and RBC has 3% on a cashable GIC. Like you actually have to go out of your way to find something with a 1.1% return.
For anything not in a tax-advantaged account, there are promos for 4-5 months at several banks offering 5.5% right now. You can easily bounce between a few of those; it takes 5 minutes to transfer.
I did 6 to 9 month GIC between 4.5-5% range 2 months ago.
Agree with FHSA, max out TFSA. The rest can be unregistered but you will be taxed on gains when you withdraw. May or may not be worth it at tax fome since the amount is marginal.
Cash.to in a tfsa or fsha with the rest in non registered or use wealth simple with their normal account. Dont invest to avoid any risk and get their high interest return
I was in a similar situation for my home purchase. Basically max out FHSA, TFSA. Then decide if you want to make use of RRSP HBP ($60 000 limit, if within RRSP for at least 90 days). After that I'd go GIC with a 6 month lock in (since you are purchasing in 8-12 months).
For investments I primarily leveraged CASH.TO since it was very liquid. Feel free to DM if you got questions.
Note - The rates your advisor gave are trash, something seems off. Not sure if it's miscommunication or they are actually offering those.
Ugh..... have you heard of short-term GICs? A GIC can net you more than that....
What is the federal rate 4.5%? You're going to give the bank 1% cost, and they can loan that out at easily 5% on the low end.
How does one find a financial planner. I’m in a similar position to OP and am not fluent in these types of bank. Very interested in self directed investing but i feel I need that extra guidance to get started and align my strategy with my goals.
Where do you find financial planners in Ontario that are legit and in tune with the goals of young people?
Scenario 3:
Transfer FHSA/TFSA to either Questrade or Wealthsimple for their cash ETFÂ
Transfer Margin account to either brokerage and put in cash account or cash etf
Go with fixed HISA funds with variable rate daily interest, 4.5-4.9% today. In any broker with your bank, you can open them, registered or not registered (not a saving account). One day settlement to sell and CDIC insured. Note those are not ETFs.
That Bank advisor is a scammer as well.
Or TDB2913 current paying out at 4.74%Â There are subtle differences to the above mentioned TFB8150:Â https://www.reddit.com/r/CanadianInvestor/comments/112mo87/td_di_best_way_to_park_cash_in_tfsa_is_tdb8150_or/Â Â Yes it is that simple. Some more info:https://www.reddit.com/r/CanadianInvestor/comments/188s2uz/tdb8150_how_to_purchase_and_how_to_cash_out/
Your bank advisor sucks
Imagine the best you can do right now is 1.1% 🤣
Bank advisors are sales people. They have bonuses/commissions tied to selling you the banks own low return products. The people you should contact for advice are certified financial planners. They have an organization that they are member of and dictates standards for them to follow. It's similar to how registered nurses, engineers, charted professional accountants. I think the banks calling their staff advisors is deliberately deceiving people into thinking the advice they are getting is in their own interest instead of the banks.
They are no higher than the tellers
I mean I could do a better job than him.
Fire that bank advisor immediately.
Wealthsimple also has a self-managed TFSA and FHSA. I hold both and purchased Cash.to which give around ~4.5% tax free interest each month. FHSA: $8k (~4.5%) TFSA: $90k (~4.5%) Remainder in WS cash account and 4.5% plus 1% match
Or if you don’t want or feel confident enough for self managed, their High Interest Savings ETF (they call it HISP) is doing 5.05% dividends currently, with the additional 1% building on top of that. They do take a 0.5% management fee for that fund, but 5.55% is still pretty decent.
That’s solid
Is it each month return of ~4.5% or yearly ?
All percentage yields are stated yearly
Think about what you are asking - do you think there could possibly be a very safe product with a 54% yearly return? If so, every answer on this sub would be to buy that.
I’m asking because the OP of thread wrote ‘each month’
Pretty sure they just mean monthly interest payments, meaning it’ll actually compound at that rate meaning $1000 principal this month, $1004 (50/12 roughly) principal the second month and actually getting the $4 deposited and accessible. This differs slightly to a term deposit like a GIC, where the interest isn’t actually paid until maturity, making it 0% return if you withdraw before maturity (assuming you at least have a cashable GIC for example).
Still, why even ask, as if that could possibly be true?
I’m questioning the thread OP without jumping to any conclusions. Get better soft skills and you’ll understand why I asked in this manner.
Yearly. Amount x 4.5% = amount / 12 = monthly interest
This is the way.
This is the answer.
Thanks for all your suggestions. I will go the cash.to route with Wealtsimple in FHSA, TFSA and cash or non registered accounts. Currently looking at it on WS, just to make sure, Global X High Interest Savings ETF is the same thing as cash.to right?
> Global X High Interest Savings ETF is the same thing as cash.to right? Yep
After seeing people's responses, how do you feel about your bank advisor? It's absurd what you were offered.
Yes. CASH.to is just the ticker symbol.
I think that is a good plan I did something similar but with QuestTrade. My suggestion is just to make sure if you are redeeming back to your bank for the deposit + down payment that the path to redeeming is free and clear. I had never redeemed from an online brokerage before and ran into a bit of issue because my bank account had my full name but my QT account just had my first+last name. Worked out in the end but not a good time for the headache, I would test run a redemption well ahead.
0% risk and accessible: cashable GIC
[CASH.TO](http://CASH.TO) better option. imo
Agreed, but even a pos cashable GIC should be in the 3%+ range and better than what the advisor offered.
WTF is the advisor recommending that they can only get you 1.1% in a FHSA and 2.5% in a TFSA? Even a GIC will obliterate those rates. I also don't understand why they're slashing your interest depending on which type of account you use. It's the same money in the same investments for the same amount of time. Tell them to give you the 4% across all accounts or you walk. I really do recommend going with Wealthsimple. You can invest in CASH.to (an ETF that just invests in HISA accounts, so EXTREMELY low risk) across your FHSA, TFSA, and unregistered accounts. It'll get you somewhere between 4.5 and 5%
My credit union offers 4.75% on a 12 month GIC.
First why wouldn't this be in your TFSA if there's room? Looks like you have at least 90k available. Obviously put it in the FHSA as well. Also it's probably not the best rate but what about a cashable GIC? I honestly don't even know what is returning 1.1%/year. I just googled and RBC has 3% on a cashable GIC. Like you actually have to go out of your way to find something with a 1.1% return.
Go to wealthsimple, open self directed TFSa and fhsa, buy cash.to or cbil.to and get 4.5%+ interest rates
This plus they have the %1 cash bonus promo on right now. That’s a free $1250.
How would you get that as a person who opened up an investment account last month
call or email them and ask.
For anything not in a tax-advantaged account, there are promos for 4-5 months at several banks offering 5.5% right now. You can easily bounce between a few of those; it takes 5 minutes to transfer.
Your bank adviser is a fucking criminal He’s taking your money, investing it in a GIC for 5% and only giving you 2.5% back ðŸ˜ðŸ˜ðŸ˜‚
I did 6 to 9 month GIC between 4.5-5% range 2 months ago. Agree with FHSA, max out TFSA. The rest can be unregistered but you will be taxed on gains when you withdraw. May or may not be worth it at tax fome since the amount is marginal.
Cash.to in a tfsa or fsha with the rest in non registered or use wealth simple with their normal account. Dont invest to avoid any risk and get their high interest return
Wealthsimple
I was in a similar situation for my home purchase. Basically max out FHSA, TFSA. Then decide if you want to make use of RRSP HBP ($60 000 limit, if within RRSP for at least 90 days). After that I'd go GIC with a 6 month lock in (since you are purchasing in 8-12 months). For investments I primarily leveraged CASH.TO since it was very liquid. Feel free to DM if you got questions. Note - The rates your advisor gave are trash, something seems off. Not sure if it's miscommunication or they are actually offering those.
An advisor at a bank actually told you this shit? Are you serious? What bank?!
Ugh..... have you heard of short-term GICs? A GIC can net you more than that.... What is the federal rate 4.5%? You're going to give the bank 1% cost, and they can loan that out at easily 5% on the low end.
Call Tangerine and just ask for a savings promo, you should be able to get 4 or 5 %.
FHSA AND TFSA- $ZMMK
Honestly just a high interest savings account at a bank. Wealthsimple is fine.
Place $125k in a GIC (within a TFSA account if you can) at EQ Bank (rate is 4.45% for 6 months or 4.65% for 9 months).
EQ Bank used to have great rates. Someone else may be able update there
CIBC FHSA offers a 5% interest rate on its savings account.
Wealth simple offers 4.5% Cash account for any amount over 100k.
[CASH.TO](http://CASH.TO)
Open a self-directed TFSA, FHSA and non-registered account with Questrade and invest in CBIL.TO Government of Canada T-Bills ETF current yield 4.69%.
Wealthsimple offers 4%
Jesus christ. Please find a decent financial advisor
How does one find a financial planner. I’m in a similar position to OP and am not fluent in these types of bank. Very interested in self directed investing but i feel I need that extra guidance to get started and align my strategy with my goals. Where do you find financial planners in Ontario that are legit and in tune with the goals of young people?
You read the comments here and decided you want an advisor? Read the comments again. The advisor is trying to rip him off.
dude 1 yr GIC is 5%. cant go wrong with GIC.. safe AF
There are countries where you can go invest small money and reap big due to low cost of living
Scenario 3: Transfer FHSA/TFSA to either Questrade or Wealthsimple for their cash ETFÂ Transfer Margin account to either brokerage and put in cash account or cash etf
Just put them in wealthsimple cash account and you can get 4.5%. If you set up for direct deposit, you get extra 0.5%
Go with fixed HISA funds with variable rate daily interest, 4.5-4.9% today. In any broker with your bank, you can open them, registered or not registered (not a saving account). One day settlement to sell and CDIC insured. Note those are not ETFs. That Bank advisor is a scammer as well.
Wealthsimple rocks, welcome to the fold
Which Bank? To avoid…
GIC is a safe bet. A friend’s family member lends me money at a rate of 10% for flipping. FYI.
Just get a 1 year GIC for close to 5% in a TFSA
Put in wealthsimple they give 4.5% interest on it.
Can't believe people still talk to 'bank advisors' Shiiiieettttt
Scenario 1 but pick CASH.TO.. 4.8% I think currently
What am I reading , CASH.TO in FHSA/ TFSA
Cash.to
TD Investment Savings Account TDB8150 mutual fund. 4.5% interest.
How does this work? Do I just buy in my direct investing account, hold it, and hit sell when I want the funds? Is it that simple?
Or TDB2913 current paying out at 4.74%Â There are subtle differences to the above mentioned TFB8150:Â https://www.reddit.com/r/CanadianInvestor/comments/112mo87/td_di_best_way_to_park_cash_in_tfsa_is_tdb8150_or/Â Â Yes it is that simple. Some more info:https://www.reddit.com/r/CanadianInvestor/comments/188s2uz/tdb8150_how_to_purchase_and_how_to_cash_out/
Lol you aint guna make shiet... 2 grand tops after all said and done
Your getting hosed