Bill’s Blog | July 28, 2022
Let’s talk savings. For years savings have been an embarrassing topic, and due to central bank policies, financial institutions provided near “0” rates. However, over a decade of these harmful policies, as with all cycles, eventually revert to historical norms. So, let me share some good news with those looking for safe and decent yields outside the traditional big banks and credit unions.
- On a one-year locked-in GIC with ManuBank today, you can achieve a 4% return. Up to 4.6% on a five-year term. Also available in 2, 3 and 4-year terms. *Rate can change weekly. But this has been great in our current environment as the rates continue to increase. Minimum $2500 deposit can be Cash, RRSP, TFSA or RRIF. If you are looking for monthly income, the minimum deposit must be $10,000.
- What if you are looking for liquidity (non-locked in)? My second solution has added benefits as it is a segregated fund contract. A GIA (Guaranteed Investment Fund or Account) can provide a 1-month-renewable rate of $1.7% (*can change monthly up or down). The sweet spot is one, two and three years, as these rates are reasonable, and I can create a ladder strategy, so you can always have liquidity on the maturity or even exit early in an emergency with a small fee. Depending on the deposit amount, a one-year term starts at 2.7% and goes up to 3% on a 500K deposit—two-year, 3.45% to 3.75% and three-year, 3.55% to 3.85%.
- Here are some of the main benefits of a GIA over a bank GIC.
- Liquidity at any time; however, it is always best to wait until the term is up to avoid a fee for early redemption.
- Beneficiary designation: monies are paid out tax-free to a person or persons, usually within 30 days (excluding RRSP monies, as they are taxable).
- This asset stays outside the estate and is not subject to probate tax and delays (6 months to 2 years in many cases). Also, the money is private and not subject to lawyer and accountant fees. On a sizable estate, this can save 10’s of thousand in unnecessary costs.
- The money is also creditor protected in most cases unless a person tries to dump it in, knowing they are getting sued or going bankrupt.
- Safety, as insurance companies are highly capitalized compared to banks or credit unions.
- The Minimum deposit can start at $500. On deposits of over $1M, I can negotiate better rates.
Action Step: Please reach out to me if you are interested in getting superior yields on your savings. (All BC residents). ManuBank, I can do it online, but I must meet in person with the GIA to make the application.
Travel Insurance: Don’t leave home without it! People often default to a particular insurance carrier (usually due to convenience), not realizing there can be significant rate differences from one insurer to the next. When I make rate comparisons for clients, it can be hundreds of dollars different for the same coverage between insurers. If you are looking for very competitive travel insurance rates with a wide range of solutions, don’t hesitate to contact me.
If you travel outside the country, please do not forget to buy travel insurance. It could wipe you out financially if you have a severe health event.
So, who can we cover?
- Outbound Plans: Age 2 weeks to age 89. Age 60 plus requires a simple medical questionnaire.
- Severe health issues like cancer will disqualify you from coverage. Pre-conditions are not covered.
- Comprehensive Emergency Hospital and Medical Plans.
- Single trip or multi-trip are available.
- Canadian Expatriates plans are available.
- Inbound to Canada Plans: Visitors to Canada, Inpatriates to Canada and International Students.
- Additional Coverages are available:
- Trip cancellation & Interruption
- Trip Interruption
- Accidental Death and Dismemberment
- Flight Accident
Action Step: I can help you with a quote online within about 15 minutes and fully cover you if you approve the quote—BC residents only.
Wealth Foundation Series Online Course Summer Special: $129 CA. Why did I create the course?
After over 15 years of doing financial seminars (over 200) and sitting down with hundreds of individuals (business owners, professionals and individuals), a common theme reoccurred. The vast majority of Canadians have minimal financial education. Most people do not understand the many risks of investing, the wide range of solutions available, or the importance of market cycles, to name a few issues.
Sadly, tens of thousands of Canadians will experience a harsh lesson on why not to buy a home at the top of the real estate cycle with rising interest rates. Real estate has an 18 to 20-year cycle from trough to peak and is entirely foreseeable (I cover this in the course). Yet without this knowledge, many individuals may find themselves in financial trouble when they try to refinance in the coming years. I cover several critical cycles you need to understand in my course, so you do not experience sizeable financial setbacks.
Second, I, too, had to learn through many mistakes due to the same issue-lack of financial IQ. About 30 years ago, I started the journey of investing and eventually becoming a business owner. It was tough in my early years, as I struggled to find integral mentors. But I did not give up, and through books, tapes and seminars, I began to learn the many foundational principles essential to long-term success.
All financial education has a price tag with it. For example, I learned that markets or even starting a business could cost you many multiples in losses compared to spending a few hundred dollars on quality seminars or courses or even tens of thousands in formal education. You will pay the price one way or another, and I suggest you learn from others’ mistakes (mine) and real-world wisdom from proven investors or business leaders. If you keep wiping out your capital from bad mistakes or habits, there is no hero metal.
Who might consider taking the course?
- I have sat down with multi-millionaires many times, and they have excellent skills often in two or three areas, but they are often deficient in many critical financial areas. Whether you are a millionaire or just starting, we should all keep learning and broadening our knowledge. One to two hours a week should be the minimum. For decades I spent 10 to 20 plus hours a week learning from other experts on a broad range of topics and will continue to do so.
- The whole purpose of the six-session online course is to help you develop or adjust an existing wealth plan. I am confident the WFS course will help you whether you are a seasoned investor/business person or just starting the financial journey.
- You can complete the online course over a weekend or several evenings. Included is a study guide you can download. You have up to six weeks to complete the course, and I recommend going through it two or three times to maximize the learning experience (please take notes). The key is applying the knowledge and disciplines to your life so you continue to grow as a person.
- Finally, creating wealth is a lifetime process. There are no shortcuts. Yes, we will all make some mistakes (learn from them), so don’t beat yourself up, but the key is not repeating severe errors.
Action Step: Please click on the link and purchase the course at the Special Summer Pricing 129.00 CA
Summer Bonus Free Webinar: August 20 (Saturday) at 10 AM PST. Please join me as I interview Mark Taucar, co-founder of Accilent Select and Active Portfolio Manager. The webinar will last 45 minutes with Q&A to follow (please ask questions). So, what will you learn?
- Mark’s Big Picture Thoughts on the Economy
- What are the Big Risks in the Global Economy
- What areas in the Markets do you see Value and Like?
- What areas would you recommend Avoiding?
- Marks Key Recommendations to Protect your Wealth.
- What services do you provide to Canadian Investors? What are the differences between an active and passive portfolio manager? Closing thoughts.
Please register for this Zoom event:
You are invited to a Zoom webinar.
When: August 20, 2022, 10:00 AM Vancouver
Topic: Discussion with Portfolio Manager Mark Taucar, Accilent Capital Management Inc.
Register in advance for this webinar:
After registering, you will receive a confirmation email about joining the webinar.
We look forward to seeing you!
Bill Westmacott, Owner