Posted by sschulman on 4th of Nov 2016 at 11:32 am
Speaking with my mother's bank manager yesterday about what to
do with her expiring GIC's. He suggested something called "Equity
Powered GIC".
The bank chooses a basket of 10 stocks which you pay for. Your
principle is guaranteed so you can't lose, but your gain is limited
to 7% over 2 years and the bank keeps the rest.
In other words, I said, the banks are now buying stocks!! He
said this was instigated in 2012 or 2013. BMO was the first to do
it.
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Equity Powered GIC
Posted by sschulman on 4th of Nov 2016 at 11:32 am
Speaking with my mother's bank manager yesterday about what to do with her expiring GIC's. He suggested something called "Equity Powered GIC".
The bank chooses a basket of 10 stocks which you pay for. Your principle is guaranteed so you can't lose, but your gain is limited to 7% over 2 years and the bank keeps the rest.
In other words, I said, the banks are now buying stocks!! He said this was instigated in 2012 or 2013. BMO was the first to do it.