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Home COFSAB Forum Finances CDIC Insurance and Secured Funds Reply To: CDIC Insurance and Secured Funds

  • Neil Holatko

    April 29, 2023 at 12:23 pm

    The first paragraph is correct. You’ll find institutions have different branches within, for GIC’s and other reasons… for instance, Oaken was the highest in Calgary for GIC’s at 2.1 % prior to BoC rate hikes. Within Oaken there are 2 branches allowing for $200k insurable (Oaken Home Trust and Oaken Financial? I can’t recall). Once you’ve hit around 3 or more institutions it could be difficult to maintain but GIC’s are straightforward and creating an excel or google sheet is quite simple… You’d be losing much of your gains hiring a manager who charges basis points (look for one that charges an annual rate). The best returns are at 5 years and if you sort yourselves out correctly you could have 1 or 2 special meetings a year just to plan investments and review. With 1 million and CDIC coverage you’ve got 10 purchases… over 5 years… that’s only 2 maturing a year. If a 5-year ladder isn’t the appetite, then try to plan the maturity cycle timing to be tight and pre plan your options and the meetings with institutions within that week.

    Schedule 2 doesn’t allow for much other than GIC’s but it does allow for some great dividend stocks and bonds. A conversation is best held when you have multiple board members with financial backgrounds.

    Could you have a Reserve Fund Update instead of a new study? That may be a little more affordable and timelier.

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