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Vancouver Off-Topic / Current EventsThe off-topic forum for Vancouver, funnies, non-auto centered discussions, WORK SAFE. While the rules are more relaxed here, there are still rules. Please refer to sticky thread in this forum.
Lol hopefully fuel injection should make that better. But the car's not getting any quieter, and I'll have to drive past his bedroom window to get the car in/out of the garage...
I'm excited to see how your FI journey goes... my carb is fuxored for the 2nd time in the last 3 years now and I've had it with that piece of shit... I don't want to spend $600 on an Edelbrock and considering fuel injection.
Surprised no one is talking about this but 1 year gic is 5.8% now, good luck y'all
While I haven't seen our bank offer 5.8 on a 1-year, I guess the bigger question is why does that matter? A GIC paying you 1.8% when Prime is 2.95% is the exact same as a GIC paying you 5.8% when Prime is 6.95%. People fool themselves into thinking that somehow this world where GICs are 5%+ is a better universe for them since they can safely earn 5%.
The S&P is up 15% this year, and the Nasdaq is up over 30%. Inflation is probably near to double digits, though you can fight about the exact decimal places until you are blue in the face.
Bottom line is locking in a 1-year GIC at 5.8% is a guaranteed loss of purchasing power. In 1-year, it probably won't matter. But if you save in GICs, buying 1 year terms every year for your retirement fund, by the time you get to retirement, you'll be broker than you are today. It's just math.
People dramatically overestimate their risk of losing their capital in equity markets and other types of investment and equally underestimate the devastating effect of not outpacing inflation.
-Mark
__________________ I'm old now - boring street cars and sweet race cars.
I think he’s saying if a GIC is 5.8% it means interest rates are going even higher in the near term. So “good luck ya’ll”
I know what you/he mean, I just meant I am more generally tired of people going "SWEET!!! GICS ARE 5%!!! WINNING!!!" which in fairness I should have been more clear, is not what he was saying.
-Mark
__________________ I'm old now - boring street cars and sweet race cars.
The only people who care about a 5% GIC are old people with cash.
Don't forget the S&P's average annual return is 10%, so when the risk free rate gets closer to that number, more people will simply go with the risk free rate. Risk free rate referring to GIC's and the like.
There are many in my parent's generation, my uncle included who lost their shirt in the dot.com bubble and ever since then, they have never invested again. There are also many who know people who lost their shirt in the dot.com bubble which affirmed their belief that you shouldn't invest in the stock market and that it's "dangerous".
While I haven't seen our bank offer 5.8 on a 1-year, I guess the bigger question is why does that matter? A GIC paying you 1.8% when Prime is 2.95% is the exact same as a GIC paying you 5.8% when Prime is 6.95%. People fool themselves into thinking that somehow this world where GICs are 5%+ is a better universe for them since they can safely earn 5%.
A GIC paying 5% may be high enough for folks who just need to park money in a low risk way but don't want to do it in a 1-2.5% savings account - in a high inflation environment it can be a material diff if you hold lots of cash (say a healthy emergency fund or you're high income and have lots in the stock market already).
Back in the low inflation/low interest rate world it made no diff to hold it in your chequing account vs a HISA or a GIC, but right now checking only pays .1% in most cases.
I think obviously it's case by case, sure the market is green this year, but for a lot of people it was like at least -20% last year. Maybe I'm doing it wrong but I'm still in the negatives. And even mutual funds that average people invest in, especially conservative funds that old people buy. They haven't recovered. A old person isn't just gonna have invested in the s&p index for the first time in their life in the last 6 months so they are green. Everything is relative. Will the market drop by another 6% this year, I would say that's pretty likely given how the rates are going. As someone above has mentioned. 5.8% is guaranteed risk free rate. Not everyone has the appetite or can even afford to loose another 6% and wait another x years for it to come back.
If someone told you I'm just gonna give you $600, with no risk would you take that? Or maybe I'll give you $1000 but you can also owe me $600. What do you think people will choose.
I bought S&P shares (VFV & XSP) 5 years ago, they both went up. 60% for VFV and 49% for XSP in that time frame. I'm definitely not a stocks kind of guy, but a lot of research went into picking my portfolio. These elder Asians don't do their DD and just go by what their "friends" say. My uncle in HK lost millions on the HKSE, and it scared the majority of my family. He recovered afterward but still my Aunts and uncles still talk about it these day. There's a reason why Asians love RE, they always feel it's the safest return.
Hi everyone! I've been gone for awhile. I'm so out of the loop when it comes to mortgage rates now even though I know we've been getting constant rate hikes!
My mortgage is up for renewal next month and I'm wondering what rates everyone has been getting lately and if there's any tips to get a better rate for the next renewal.
I also hear there's a rate hike tomorrow?? My current rate is 3.05% 5 yr fixed. I'm assuming it's around 4.5-5% now?
I think obviously it's case by case, sure the market is green this year, but for a lot of people it was like at least -20% last year. Maybe I'm doing it wrong but I'm still in the negatives. And even mutual funds that average people invest in, especially conservative funds that old people buy. They haven't recovered. A old person isn't just gonna have invested in the s&p index for the first time in their life in the last 6 months so they are green. Everything is relative. Will the market drop by another 6% this year, I would say that's pretty likely given how the rates are going. As someone above has mentioned. 5.8% is guaranteed risk free rate. Not everyone has the appetite or can even afford to loose another 6% and wait another x years for it to come back.
If someone told you I'm just gonna give you $600, with no risk would you take that? Or maybe I'll give you $1000 but you can also owe me $600. What do you think people will choose.
If your portfolio is negative right now, all that means is you're relatively new to investing in the stock market. Some possible reasons you're red right now...
1. You picked individual stocks and they are underperforming
2. You invested during the July 2021-April 2022
3. You started swing trading and did not do well.
If you simply bought the S&P 500 index (VFV) during any point in time outside of July 2021-April 2022, you should be in the money right now.
My co-worker was telling me about all of these stocks they were buying and how they have so much potential.. Then I found out they were getting all their research from the Motley Fool...
Not that there's anything wrong with the Motley Fool, it's just the fact that all she did was read some articles from them and thought she was Warren Buffet.
The bare minimum before you buy any individual stock is to look at their balance sheet and income statement. if you're not doing that, you shouldn't be buying individual stocks, and should just buy the S&P 500 index, it'll save you from losing money.
Hi everyone! I've been gone for awhile. I'm so out of the loop when it comes to mortgage rates now even though I know we've been getting constant rate hikes!
My mortgage is up for renewal next month and I'm wondering what rates everyone has been getting lately and if there's any tips to get a better rate for the next renewal.
I also hear there's a rate hike tomorrow?? My current rate is 3.05% 5 yr fixed. I'm assuming it's around 4.5-5% now?
I also hear there's a rate hike tomorrow?? My current rate is 3.05% 5 yr fixed. I'm assuming it's around 4.5-5% now?
Thanks in advance!
I usually refer to the RFD Mortgage Rates Thread to see what those brokers in that thread are offering. The rates they quote would vary like 2-3 times per week though so you should you lock it in with a mortgage application if there is a number you like.
Looks like we're being quote this today for mortgage + HELOC:
- Prime - 0.90% 5 year variable
- 5.89% 3 year fixed
- 5.49% 5 year fixed
The only people who care about a 5% GIC are old people with cash.
Don't forget the S&P's average annual return is 10%, so when the risk free rate gets closer to that number, more people will simply go with the risk free rate. Risk free rate referring to GIC's and the like.
There are many in my parent's generation, my uncle included who lost their shirt in the dot.com bubble and ever since then, they have never invested again. There are also many who know people who lost their shirt in the dot.com bubble which affirmed their belief that you shouldn't invest in the stock market and that it's "dangerous".
I care about a 5% GIC despite being primarily being a stock investor and to bring home that point, I believe equities when done in a prudent way is more lucrative than real estate.
Why? Reasons are below:
1) Because it affects the stock market. GICs are one type of investment instrument. When people make an investment they think about risk and return. A lot of people are actually risk intolerant. By having a GIC guaranteeing 5% return (sure it's long term less lucrative than equities) it's supremely attractive when it hasn't been for a long time.
What this means is that the more attractive it becomes for many people, rather than investing in equities or real estate, they invest in a GIC. This in turn directly reduces the amount of liquidity/monies in the stock market.
Not to mention age, lifestyle, etc.
2) I believe the 1-year GIC is an extremely smart decision right now for anybody. The reason is simply that there is a 100% chance there is going to be a recession/systemic calamity and a resultant stock market crash. Put money into a 1-year GIC/savings account now and wait until 1-2 years and take it out/buy when equity prices are depressed. This is what I've been telling my parents to do.
Hold liquid cash (returns don't have to be great now) -> buy Canadian bank stocks when they're paying 7-9% dividend yield (prices low) -> ride until it recovers whilst getting paid 7-9% dividend which would be even and or above current mortgage rates.
This is the safest strategy with a moderate reward that I've strategized for my parents.
__________________ There's a phallic symbol infront of my car
Quote:
MG1: in fact, a new term needs to make its way into the American dictionary. Trump............ he's such a "Trump" = ultimate insult. Like, "yray, you're such a trump."
bcrdukes yray fucked bcrdukes up the nose
dapperfied yraisis
dapperfied yray so waisis
FastAnna you literally talk out your ass
FastAnna i really cant
FastAnna yray i cant stand you
Hi everyone! I've been gone for awhile. I'm so out of the loop when it comes to mortgage rates now even though I know we've been getting constant rate hikes!
My mortgage is up for renewal next month and I'm wondering what rates everyone has been getting lately and if there's any tips to get a better rate for the next renewal.
I also hear there's a rate hike tomorrow?? My current rate is 3.05% 5 yr fixed. I'm assuming it's around 4.5-5% now?
Thanks in advance!
You are a little hooped right now. We just refinanced right around the last hike and got just over 5% for 3 years. You would be looking at around 5.6-6% today depending on your mortgage amount, property worth, and term. With the rate hike tmr, probably 6% and up. When you said you are up for renewal next month do you mean you are due, or you can renew early?
You are currently viewing our boards as a guest which gives you limited access to view most discussions and access our other features. By joining our free community you will have access to post topics, communicate privately with other members (PM), respond to polls, upload content and access many other special features. Registration is fast, simple and absolutely free so please, join our community today!
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