I borrowed the money for a GIC but a student loan is a lot more than 6,000!Any amount of consumer debt is bad debt. The only good debt is debt that helps you to meet your financial goals - i.e. mortgage debt, student loans, leveraged investing...
What is your LOC interest rate? What is the GIC duration rate you received?I borrowed the money for a GIC but a student loan is a lot more than 6,000!
prime+2 and I don,t have a interest rate on my GIC its a progressive GIC from BMO Dividend Link GIC locked up for 5 years in a RRSP(registered)What is your LOC interest rate? What is the GIC duration rate you received?
Even progressive rate GICs have interest rates - they are usually escalating rates i.e. different ones for each year.prime+2 and I don,t have a interest rate on my GIC its a progressive GIC from BMO Dividend Link GIC locked up for 5 years in a RRSP(registered)
No offense buick1957, but it seems you may have been the latest guy to be sold by a bank salesman. I've been there so this is no dis. Get rid of that LoC as fast as you can; and don't listen to whoever got you into this ever again. If you ever see them in a bar, buy them a drink, but spit in it first.Even progressive rate GICs have interest rates - they are usually escalating rates i.e. different ones for each year.
That aside, you borrowed from an LoC to invest in RRSP?
And in a GIC?
Your loan interest rate sounds rather high....it's probably 4.25% now.
How do you plan to make 4 - 5% on this deal?what I did was a great idea I will make more than 4 or 5 per cent a year I bought a Dividend Link GIC which the principle is guaranteed
You may be confusing two separate products here - progressive rate GICs and market-linked GICs.but these progressive GIC once again have no interest rates you make your money at the end of 5 years on your Participation rate which is 60% but remember Dividend Fund is one of the top performers
Can you tell the exact GIC you purchased? This could help give more real input onto how good of a choice it was given you purchased using a LOC prime+2.what I did was a great idea I will make more than 4 or 5 per cent a year I bought a Dividend Link GIC which the principle is guaranteed but these progressive GIC once again have no interest rates you make your money at the end of 5 years on your Participation rate which is 60% but remember Dividend Fund is one of the top performers
I'm sorry people I can,t explain it any better I'm not confused with nothing go to bmo.com and look under progressive GIC!!!!!!!!!!!!!!!!!!Can you tell the exact GIC you purchased? This could help give more real input onto how good of a choice it was given you purchased using a LOC prime+2.
At least please take the tax refund you get since you put the LOC $ into an RRSP and use the cash to pay down the LOC instead of buying something.
The likelihood of you making $ on a GIC linked to a dividend index fund given 60% participation is very low to nil given your interest rate, as has been suggested earlier.
And what if interest rates raise (they sure can't go down anymore), then you could end up loosing $ in the deal unless you pay the LOC off FAST, even with the tax break you get from the RRSP contrib.
Recognize a mistake and learn from it; that is the most value you may get from this deal.![]()
I took a quick look.I'm sorry people I can,t explain it any better I'm not confused with nothing go to bmo.com and look under progressive GIC!!!!!!!!!!!!!!!!!!