I personally think GIC's are not for me because of the following:
1. The rates are usually not that high, plus you end up having to pay taxes on your gains even though you havn't touched it.
2. Depending on where you live (Alberta for me) the GIC's may not even offset inflation rates. Which effectively nulifies or makes your gains negligible. Plus you still have to worry about paying taxes opn those gains.
3. Many institutions try to get you to lock into a term
4. It adds to your taxable income at the end of the year whilst RRSP's reduce it (or at least defers it for later).
Although I haven't reviewed the restrictions on the new savings plan, I wonder if you open the savings account first and then invest it in a GIc if the gains end up being tax free... then my issues above are no longer applicable... For me I'd still put my money in Canadian real estate.
So far it seems the application of this new plan is endless!
Reggie
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rdnicolas [Edmonton]: 77 Gal (48x16x24), (3) Fluval 404's, (2) Korlis 2's, 100lbs LR, Coralife Pro 250, Deltec MCE600
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