ING Direct – Earn 2% on your money

[Shwa Girl]

Just checked our ING accounts.


ING is offering a 1 year Tax Free GIC at 2%.

The 1 year Tax Free RRSP GIC is also 2%.


www.ingdirect.ca

[kris32]

oooh,thank you. Not too bad afterall.

[ashedfc]

Do you guys seriously feel 2% is enough, when Govt inflation numbers show more than 2%...
this way you are guaranteed to loose money..

[Shwa Girl]

Do you guys seriously feel 2% is enough, when Govt inflation numbers show more than 2%...
this way you are guaranteed to loose money..

What banks and products do you suggest? Please post here.

[Carlotta]

Just checked our ING accounts.


ING is offering a 1 year Tax Free GIC at 2%.

The 1 year Tax Free RRSP GIC is also 2%.


www.ingdirect.ca

There is no such thing as a "tax free RRSP". All money withdrawn from an RRSP is taxable. Also, the only way ANY GIC would be tax free would be if it were held in a tax free savings account.

[tjthemanto]

Do you guys seriously feel 2% is enough, when Govt inflation numbers show more than 2%...
this way you are guaranteed to loose money..

Yes its not enough.

But Can you guarantee 2 % with any other investments like mutual funds, stocks , real estate etc ?

If you have any other investment where you will guarantee my principle + 10 % interest let me know, I will gladly buy it from you.

Sure I can make more like 10 % , 50 % etc with stocks, mutual funds , real estate etc , but it can also be easily - 10 % , - 50 % in no time.

Ask all the people who lost their shirt during the stock market crashes and real estate crashes.

[ashedfc]

What banks and products do you suggest? Please post here.

I can only tell you the disadvantage of holding a fixed income product (like GIC) in the current global economic environment..
Having known the facts, then what you do is solely your responsibility. A financial decision shouldn't be taken with ignorance.
Best is talk to your existing advisor & discuss,

Here's something worth reading,
Printing Money – Price of Gold – Preservation of Wealth

October 9th, 2012 by admin golds
by Egon von Greyerz – October 20121.
1. Worldwide money printing continues unabated
2. Just In 10 years $120 trillion have been printed making global debt $200 trillion
3. World GDP has gone from $32 trillion to $70 trillion 2001-2011
4. Thus $120 trillion debt is required to produce a $38 trillion annual increase in GDP
5. The marginal return on printed money is negative in real terms
6. Thus the world is living on an illusion of paper that people believe is money
7. This illusionary paper wealth will implode in the next few years
8. The initial trigger will be the collapse of the world’s reserve currency – the US dollar.
9. The dollar is backed by $120 trillion of US government debt and probably NO gold
10. All currencies will continue their race to the bottom and lose 100% in real terms against gold
11. This will create a worldwide hyperinflationary depression
12. All assets financed by the credit bubble will go down in real terms
13. This includes stocks, bonds, property and paper money of course
14. The financial system is unlikely to survive in its present form
15. The banking system including derivatives has total liabilities of around $1.2 quadrillion
16. With world GDP of $70 trillion, the world is too small to save a financial system which is 17x greater
17. This is why there will be unlimited money printing and hyperinflation
18. The only asset that will maintain its purchasing power is gold
19. Gold has been money for 5,000 years and will continue to be the only currency with integrity
20. Western countries’ 23,000 tons of gold is probably gone. (article by Eric Sprott "Market at a Glance")
21. The consequence is that most of the gold in the banking system is likely to be encumbered
22. This means that Central Banks one day will claim it back against worthless paper gold IOUs
23. Thus gold and all other assets within the banking system involve an unacceptable counterparty risk
24. Gold should be held in physical form and stored outside the banking system

(Canada isn't out of the global economy, hence problems elsewhere affects the Canadian dollar)..
wait couple more months, the Canadian housing is getting ready for a major correction.. this will take substantial wealth away from homeowners borrowed to the hilt..
check this..
www.greaterfool.ca (a daily blog from Garth Turner).

[itchy54]

So.....we are to buy gold..and then what. Shave off little bits to buy groceries....

The article you quote is written by someone who sells gold and other valuable metals to very well of families....biased a bit maybe?

We need to diversify, yes...but i won't be hoarding gold bars in my basement (and where I live, the copper/gold mining sector is booming..there is gold in them thar hills...my backyard...)
so close to retirement I did take advantage of putting some of my loose money into the 2% savings for a year...in fact, all the money that i have made for myself (and we can retire very comfortably at 56 and never had a high paying job and stayed home with the kid) was made in GIC's...my financial advisor lost most of the money we had invested so maybe that makes me a little leary of words printed by an financial advisor...
I have a home that is paid for...that is important. i can grow food and hubby and i both have skills that could be traded for things if our dollars become firestarter....and i know how to pan for gold...and i know where to look...knew that geology degree would come in handy.

I understand that 2% is not much, but it beats 0 and negative returns....and as my income is low i don't pay taxes on the interest.

our plan is to buy acreage when prices fall...land, i believe, if it's farmable and has water, will be very valuable indeed.

[ashedfc]

There are 2types of return - Real return & Nominal return... (thats where the difference lies)...
go google to learn the difference

[hmm]

A 2% return should keep your money from loosing value, and considering it's a Tax Free GIC, that's not too bad of a deal (comparing to other available options).

[Taios]

'Tis the season for giving and getting. Every time you refer a friend to ING DIRECT and they open an Account with $100 or more, you'll earn $50. That's double the usual $25!


Use this valid ING Orange Key


http://www.ingdirect.ca/en/signmeup/index.html

[ashedfc]

A must read....
In eight weeks you’ll be able to stick another five grand in your tax-free savings account. If you have a spouse, make that $10,000. If you have four children over 18, then shelter another $30,000. Finally, a valid reason to breed.
If you invest $10,000 in assets with a long-term return of 7% (what equities have given), and add in the annual TFSA contribution limit of five thousand, in 20 years you’ll have $243,674. Not bad for a hundred bucks a week. Of course, you can accomplish similar results with an RRSP, but the quarter mill will be nailed as income, and in 2032 you can bet tax rates will be higher.
I’m always gobsmacked by how many people think a TFSA is a ‘thing’ the bank sells. In fact, surveys show that eight out of ten people believe TNL@TB, and fill their tax shelters with a savings account. This is like making your new Boxster into a planter. Or marrying for love.
Fact is, with interest rates where they are, saving money is a losing proposition inside a tax-free account. Even moderate inflation wipes away the benefit. So all you accomplish is lending money to the bank at 2% so they can give it back to you as a car loan at 5%, and suppress snickers each time you walk into the branch.
I’m appalled at how the banks are misleading folks. So remember this:
The maximum annual contribution is $5,000 per taxpayer, or $10,000 for a couple. All unused contribution room can be carried forward forever, as with RRSPs. Unlike RRSPs, though, there’s no ability to deduct the money you put into a TFSA from your general taxable income, to net a refund. But, also unlike an RRSP, you can take money out of a TFSA at any time without generating any tax bill.
And any money withdrawn from a TFSA can be replaced, without affecting your ability to add another $5,000 every year. Most importantly, everything you stick in a TSFA (as with an RRSP) grows free of any tax. That means capital gains, for example, compound and swell. The best TFSA is a self-directed one, in which you can place a giant range of stuff from ETFs to bonds to stocks.
Here are eight strategies worth reminding.

• Stick as many of your assets as you can inside a TFSA. Stocks, bonds, strips, T-bills, options—everything qualifies for a self-directed account opened with an advisor or a brokerage company.
• Make the maximum annual contribution, and if you don’t have the money then simply transfer in assets you already own in the form of a contribution in kind. Remember to get things in first that are subject to the highest rate of tax, such as interest-bearing bonds or foreign securities that pay dividend income. (Also remember a capital gain could be triggered if you transfer securities on which you’ve made unrealized profits.)
• Use the TFSA to do some serious income splitting. If you give your spouse $5,000 as a gift, for example, then he or she can open a TFSA and contribute the maximum amount, investing this money in growth securities. None of that income will be attributed back to you. And unlike a spousal RRSP, they can take money out at any time and use it for any purpose—even the day after your gift—and no tax consequences.
• In fact, you could put money in your TFSA, make a big profit on high-growth stocks, withdraw the profits tax free, give them to your son or daughter or mother, and they could then use that money to establish their own TFSA—a great way to recycle tax-free capital gains.
• You can also take tax-free capital gains out of a TFSA and use them to make an RRSP contribution, which will in turn get a sizable tax refund because of the deductible nature of the retirement plan payment. This tax refund can then be used to replace some of the money you took from the TFSA, which allows it to grow further without triggering any tax consequences.
• In other words, you have used a tax shelter to create an untaxed capital gain, then withdrawn that profit, tax free, in order to contribute to another tax shelter. By doing so, you receive a very large tax deduction, which reduces your taxable income, with a refund that can be reinvested in the first tax shelter.
• If you’re retired and worried that your investments could grow in value and throw off income putting you in a higher tax bracket, or cause some government benefits to be clawed back, then simply shelter them inside the TFSA. Then you can withdraw cash whenever you want, without tax and without even having to report it as a part of your overall income.
• The TFSA can help with tax-loss selling. For example, if you dump a stock that’s lost value in order to claim a year-end capital loss against other capital gains, do it outside the TFSA. Then put the money inside your tax-free plan where it can be used to buy back the security and any future gains will be sheltered, while you circumvent the superficial loss rule.
• In retirement, having a fat TFSA solves some of the problems you might need an RRSP meltdown strategy to solve. That’s because all withdrawals from a TFSA are free of withholding tax, and do not add to your taxable income. So, it makes perfect sense to draw the TFSA down before you start cashing in that RRSP.

So the tax-free savings account is destined to eclipse the RRSP, especially when contribution limits rise. (The feds promised to adjust them for inflation, but no word on that year. Plus during the last election came the commitment to double contributions when the budget is balanced. But don’t hold your breath.) The very first money you save should go into one of these. Every stock, ETF or mutual fund you own should migrate inside a TFSA, unless you have no room. Your spouse and adult children should have them, allowing you to income-split. The most volatile or growth-oriented assets you own should be here. And never, ever, ever, ever put a savings account, GIC or pathetic Canada Savings Bond inside this baby.
As a group, bankers should be ashamed for taking advantage of the ignorance of the masses. The masses, for their part, have no excuse.

Source: http://www.greaterfool.ca/2012/10/28/banking

[y2ktrent]

Please feel free to use my Orange Key below

[baddays5]

Thanks for the info guys!