Deposit insurance and other mail from the reader

Questions are piling up in my inbox, allow me to address a few here for everyone’s benefit.

Jocelyn first.

“A retired friend from the financial sector told me recently that it was becoming less and less prudent to have GICs in accounts worth more than $100,000 and more at the same financial institution, because the excess is not protected by deposit insurance. […]. I hold investments in GICs in a Desjardins caisse whose value exceeds $100,000. What do you think ? »

If there was a cataclysm big enough that Desjardins would no longer be able to honor its GICs, money would probably be the least of our worries. I would advise you to bet on gold, a garden, a few chickens, barbed wire and a gun.

Distribute between several

The Canada Deposit Insurance Corporation (CDIC) protects up to $100,000 in deposits or GICs per type of account (TFSA, RRSP, RESP, etc.) and per financial institution. When the money is split equally between an RRSP and an unregistered account at the same bank, $200,000 is insured. If you fear the apocalypse, spread your holdings among multiple institutions to extend protection.

Note that CDIC coverage does not apply to investment funds or stocks.

Form ISP-3041

In my column on Saturday, I recounted the difficulties of a retiree in getting her hands on the ISP-3041 form from Service Canada, which would allow her to recover her guaranteed income supplement. I wrote: “Only, the document does not exist in PDF format, it cannot be downloaded anywhere. »

Some took this statement for a challenge! Not a little proud, they sent me the form in PDF format. In any case, it was the 2017 version hosted on the site of the Quebec Center for Training in Taxation (CQFF).

The idea defended in the column was that we can easily access it on the Service Canada site, not that we have to scrape the web.

Advisor wanted

Question from Chantal, who has just inherited and who is trying to invest her money prudently, to preserve capital: “Can you explain to me the difference between a financial adviser, a wealth manager and a financial planner? »

“Financial Advisor” is not a recognized title, although I often use it as a generic formula to name an expert (whom I will have previously named with his real title). “Wealth manager” is not an official designation either, it is a marketing label that some financial services companies mainly use. It’s more “upscale”, without really being.

“Financial Planner”, on the other hand, is a recognized title. To appear as such, one must study, pass an exam, submit to continuing education. The planner is a generalist. He often combines other titles, either mutual fund dealer representative, required to offer mutual funds, or financial security advisor, required to offer insurance products.

The majority of them earn their living with commissions from the sale of financial products, which allows them to provide their advice “for free”. Fee-based ones are rarer. Each formula has its advantages and disadvantages, but we must above all ally with a professional compatible with our values, our vision of life.

Chantal, you could put your money in short-term guaranteed investment certificates (one year and two years), the time to find a financial planner with whom you will be on good terms.

Mistake on the person

A question from Monique: “Did you work at the Provigo parent company in Laval? I worked there for a few years and held various positions, including one with Daniel Germain. I then made the deposits. »

This colleague, did he wear a mascot uniform as part of his duties?

It’s true that my photo in The newspaper is not the most similar, even my mother takes me for someone else.

Next tomorrow.

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