any financial ppl out there? need advice/help!

[gkAeris]

Investment Details
Product: RATE MAXIMIZER GIC RSP
Issuer: THE CANADA TRUST COMPANY
Principal: $1,080.62
Current Balance: $1,107.64
Issue Date: Feb 28, 2003
Maturity Date: Feb 28, 2008
Interest Rate: 3.00%
Interest Payment: COMPOUND ANNUALLY
Maturity Instructions: PAYOUT

what the hell does that mean?

i brought this RRSP or something last year....
does it mean i'm making 3% of whatever is in that account each year?

and then for some strange reason i have this too now

Product: TRIPLE VALUE GIC RSP - 2004
Issuer: TD MORTGAGE CORPORATION
Principal: $600.53
Current Balance: $600.53
Issue Date: Mar 04, 2004
Maturity Date: Mar 04, 2005
Interest Rate: 1.90%
Interest Payment: COMPOUND ANNUALLY
Maturity Instructions: RENEW PRINCIPAL AND INTEREST

:dunno:

yup so if someone knows what i'm doing can you tell me????? :)

[Shaolin]

the only number i look for in quarterly statements is the % change.. did someone start a GIC account for you? Because you would know it if you started your own GIC Account.

Anyways, from reading the descriptions, yeah what you said is right.. you're making 3% annual compound interest on that investment of 1,080.62.

Did you start another GIC investment? or parents? boyfriend? whatever.. you should know if it's in there ;)

so from the looks of it, it's just 2 GIC investment accounts.. one at 3% and one at 1.9%.

I highly recommend throwing the money into an index fund or something instead if it's a 5-10 year investment term.

[ninjak84]

The interest is compound, so you're making 3% a year with a new total every year.
The first year, you'll have $1030. Then the second year you'll have $1061.

Same deal/calculations on the second account too.

RRSP's are usually locked for a long time, so it's best not to touch any of that money until the maturity date. If you do want to take some out, you have to pay a big tax percent on it, and lose alot of money.

[TrevorK]

Possbile consider an actual mutual fund.

Right now you're using GIC's which have 0 risk to them basically, mix in some risk and you should be able to get 5% easy as a return.

[gkAeris]

Originally posted by Shaolin
the only number i look for in quarterly statements is the % change.. did someone start a GIC account for you? Because you would know it if you started your own GIC Account.

Anyways, from reading the descriptions, yeah what you said is right.. you're making 3% annual compound interest on that investment of 1,080.62.

Did you start another GIC investment? or parents? boyfriend? whatever.. you should know if it's in there ;)

so from the looks of it, it's just 2 GIC investment accounts.. one at 3% and one at 1.9%.

I highly recommend throwing the money into an index fund or something instead if it's a 5-10 year investment term.

see that's werid, i kinda understand the first one, but then i don't know why i have the second one, i remember just calling in and someone at the bank told me to get the 2nd one (took $ from the first to put into the 2nd one???) so i shouldn't keep the 2nd one?

well i'm just putting $$ for the future like RRSP so i won't be touching it for awhile (hopefully) and i don't like MF there not as stable i'm not a risk taker hahaha

[Shaolin]

well looking at the descriptions maybe your banker suggested that the 5 year maturity is strictly for your long term investment (5 years is pretty dam long).. and chances are he/she suggested you start a short term GIC account to make some money in the short term without taking on any risks and also you can pull it out within a year..

that's my assumption..

it also looks like your 2nd account is pretty much optional in a sense that you can re-invest it after maturity, where the first account looks like after 5 years you get your money and that's it.. It says Renew Principle and Interest.. I think what that means is that after maturity the principle is whatever you re-invest and the interest rate will change to the prevailing (current) rate in 2005.

I'm not an RSP guy so I can only tell you what i know..

It really depends on what you want.. do you have any short term (1 year) obligations? if you don't, then i don't see the point in making a secure investment that's only give you a 1.9% annual return.. if it's money that has no obligations, throw it into something that will yield a higher return. Like what TrevorK said, you can get better returns on other investments if you have no financial obligations with the 2nd GIC account.