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



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.