Search found 4795 matches

by Springbok
31 Oct 2023 13:45
Forum: Under the Mattress: Protecting Your Money
Topic: VISA - Resolving Fraudulent charges
Replies: 39
Views: 3491

Re: VISA - Resolving Fraudulent charges

Talking to some friends about our VISA issue, they said they had had $20,000 withdrawn from their Tangerine account without their knowledge or getting any kind of alert. They were asked about the withdrawal a few days later while calling about something else. The money was returned after about 3 or 4 weeks. Not sure, but it must have been in savings account of some type. By the way - Tangerine is part of Scotia. Seems like they need to upgrade their anti-fraud systems!
by Springbok
31 Oct 2023 13:35
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: If all the markets crash??
Replies: 94
Views: 6045

Re: If all the markets crash??

When I was younger; I drove at night - now I don't have to. Routinely drove to the city - now I don't have to. I climbed ladders and routinely worked on roofs - now I don't have to. I took the Silverado 4 wheel drive out in blizzards - now I don't have to. I drove in rain/thunderstorms - now I don't have to. I drove on icy roads - now I don't have to. Went out to clear the driveway of whatever snow had accumulated - now I don't have to. Never concerned about icy sidewalks/pathways - now I am. Loved to fly for trips - hate it now. Drank a lot of alcohol- can't (or rather shouldn't) now. Was 100% invested in equities - I don't want to or need to now. My point....lots of things have changed (including myself). To deny this to myself is silly....
by Springbok
31 Oct 2023 13:16
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Preferreds
Replies: 2578
Views: 318293

Re: Preferreds

OnlyMyOpinion wrote: 30 Oct 2023 19:48 After November, folks will have to be happy with a 7.87% yield (on today's $21.65 price).
.
bmo.pr.e.JPG
Seems like something worth looking at. When first issued at $25 and 4.85% in Sept 2018, GOC5 was about 2.32%. A bit less than GOC5+spread. Now we could earn 7.87% for 5 years. So what would happen after that? I need another guess ;) If GOC5 goes back to 2.32%, then yield would be 5%. What would market price likely be? Based on 2018 $25?

Regardless, something to compare with non-bank perpetuals priced and yielding about same, but forever.
by Springbok
30 Oct 2023 15:54
Forum: Under the Mattress: Protecting Your Money
Topic: VISA - Resolving Fraudulent charges
Replies: 39
Views: 3491

Re: VISA - Resolving Fraudulent charges

Our VISA fraud issue is more or less complete. Just want to see the zero balance on next statement! We recent switched from old BMO Airmiles CC to BMO Cashback card. Wife has been using it for groceries etc and I have only used it once or twice for small purchases and gas. Today, I tried to use it to make a $1000+ on-line purchase from a company in Vancouver that I had never bought from before. The transaction was blocked by BMO. I had to call them and was directed to their fraud department. After verifying that it was actually me, they allowed the transaction to go through. A bit of a nuisance, but as I told the guy - I would rather them check up on transactions like this when they occur rather than what happened with the $2100 fraudulent ...
by Springbok
30 Oct 2023 09:27
Forum: Retirement, Pensions and Peace of Mind
Topic: Borrowing cash within RRIF to fund minimum withdrawal
Replies: 7
Views: 887

Re: Borrowing cash within RRIF to fund minimum withdrawal

I had seen that article when doing a search. But it didn't sound like that is what happened. I got the information 2nd hand, so it might not be totally accurate. Sounded to me more like the RRIF borrowed the cash for the withdrawal, perhaps to avoid having to sell other holdings that are locked in (like GICs) or perhaps equities when markets are low. But then, why not withdraw them in-kind. I will see if I can get a better explanation of what exactly happened.
by Springbok
29 Oct 2023 20:47
Forum: Retirement, Pensions and Peace of Mind
Topic: Borrowing cash within RRIF to fund minimum withdrawal
Replies: 7
Views: 887

Borrowing cash within RRIF to fund minimum withdrawal

A friend recently checked the RRIF accounts of his elderly parents. Both accounts are substantial and are managed by two different big bank wealth management groups.

As I understand it from his MIL, he noticed that the managers of both accounts had arranged for the RRIFs to borrow cash (from the manager's bank) to fund the minimum required cash withdrawals. Then the interest on the loans was charged to the RRIF.

I was surprised that this sort of thing was even allowed. I can see the possible advantage if interest rates are low. Can we borrow cash within our RRIFs? Anyone know?

Don't know exact details, but after complaining, the interest charges were reversed.
by Springbok
29 Oct 2023 11:44
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: If all the markets crash??
Replies: 94
Views: 6045

Re: If all the markets crash??

I look at it quite differently. Using your example, the IPS version of getting from Toronto to Montreal would likely start on the 401 highway as generally the quickest route. However it would also pre-plan what would happen should you encounter traffic jams, construction, etc. so you would have some idea in advance when to take alternative actions. Right, but because you don't know where those traffic jams or construction hold ups may occur, it would be difficult to pre-plan. At the time the hold-up occurs, you need to use tools like maps and GPS to make on the spot decisions. And even those may not allow you to meet your objective. This is my whole point. How can you write a policy that plans for events that you have no way of predicting ...
by Springbok
28 Oct 2023 20:55
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: If all the markets crash??
Replies: 94
Views: 6045

Re: If all the markets crash??

Essentially decisions are pre-made on what steps to take if/when a specific asset class is outside from your target range. Maybe but its all guess's. I agree. Trying to guess the future is a mugs game. I feel same about Investment Policy Statements. They are sort of like predetermining that you will drive from Toronto to Montreal on the 401 highway. This regardless of construction or other diversions. Or even take the train or a plane because they will get you their at some predetermined time. I have a hard time believing that using an IPS has been proven as prudent financial management based on real life data. I am sure, but can't prove ;), that those who rode the wave through 2008/9 did a lot better than those who rebalanced to some arbi...
by Springbok
27 Oct 2023 21:08
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Preferreds
Replies: 2578
Views: 318293

Re: Preferreds

Descartes wrote: 27 Oct 2023 17:32
Springbok wrote: 26 Oct 2023 10:22 I would be happy if our whole portfolio could yield 7% perpetually!
Then why not buy BNS commons at 7.56%?
I realize it is not attractive to you. I would like you to enunciate why.
Why do you want me to enunciate why? It is your question. The answer should be obvious.
by Springbok
26 Oct 2023 20:42
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Preferreds
Replies: 2578
Views: 318293

Re: Preferreds

brady wrote: 26 Oct 2023 19:35 The issuers could do everyone a favour if they would issue preferreds with a hard maturity date and a hard clear fixed interest rate.Someone G Stromberg might had some harsh words for some of these complicated products the issuers have been pushing out.
There are the PVS splits. Partners Value - They are another Brookfield Financial Engineered offering with fixed maturity. Yields to maturity are, I believe , in the 8-9% range.
by Springbok
26 Oct 2023 20:34
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Preferreds
Replies: 2578
Views: 318293

Re: Preferreds

If I lump Power Corp and Power Financial together along with George Weston and Loblaws I think I count 0nly 17 separate issuers of perpetual preferreds today. I am surprised there are that many! You got me interested, so I counted the ones on my list! I get just 16 ;). Pretty limited. Largely Insurers or utilities, but I haven' t tried to work out the sector allocation! (Power and Brookfield make that difficult!) Royal Bank Coop General Empire Life Power/PowerFin/GreatWestLife Industrial Alliance Intact Financial Manulife Sun Life (Securian Canada now?) Bombardier Brookfield Corp/Renew/Inves/Sagen Canadian Utilities Emera Enbridge Fortis George Weston/Loblaws Innergex Renewables The ones I own are blue. I haven't added up how much of each,...
by Springbok
26 Oct 2023 10:35
Forum: Under the Mattress: Protecting Your Money
Topic: VISA - Resolving Fraudulent charges
Replies: 39
Views: 3491

Re: VISA - Resolving Fraudulent charges

The fraudulent charges were reversed on Monday. That was 6 weeks after reporting them and over a statement payment date. So far the interest charged on the fraudulent, and our paid up legitimate purchases, have not been reversed. I received one email communication from Scotia saying the case was closed. When I called accounting re our statement, they said case will be open until October 30th. They said to call Fraud number again for more information! We are approaching another payment date and if not resolved before then can see another hiccup :( We will keep this account open just until we get our cash back! In reviewing bank holdings, I saw we have way too much in Scotia, who in general, and from our experience is not a great performer! H...
by Springbok
26 Oct 2023 10:22
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Preferreds
Replies: 2578
Views: 318293

Re: Preferreds

randomwalker wrote: 25 Oct 2023 15:24 I think there is a premium paid for certainty of dividend over an unpredictable future. All things being equal.
I agree. I am sure that one reason many knowledgeable investors buy GICs yielding <5% (0 real?) is partly just that . Perpetuals may end up having lower yields than RRs in the short to medium term, but with some risk of that not happening. My main problem with perpetuals, is the difficulty in diversifying. I would be happy if our whole portfolio could yield 7% perpetually!
by Springbok
23 Oct 2023 17:09
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Preferreds
Replies: 2578
Views: 318293

Re: Preferreds

Your numbers are fine but I'm not sure why you are comparing the respective yields using current share prices for perps and par values for resets. That doesn't make for good comparisons. and But at the very least, this currently "left-for-dead" group of preferreds might at least start getting some media attention once these "oh-so-hated" resets as a whole start paying dividends that put to shame the dividends being paid by perpetuals. Check back in two years.. I agree that my post wasn't clear. I used yield at par for RRs on basis that that is about where they may have to be priced if things pan out as you suggest they may, in 2 years. If RRs are yielding that high in 2 yrs, then presumably perps will be too. After revi...
by Springbok
23 Oct 2023 16:52
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: BMO Investorline
Replies: 1278
Views: 198063

Re: BMO Investorline

poedin wrote: 23 Oct 2023 15:43
poedin wrote: 23 Oct 2023 15:03 Unable / not displaying holding details at this time. :?:
Displaying for registered account, but not yet for taxable account.
I didn't see that when I was on-line mid morning. Just checked now, and no problem for either type of account. I checked both, but I usually use the Legacy Holding Details when reviewing our accounts. Also much better way to print.
by Springbok
23 Oct 2023 10:16
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Preferreds
Replies: 2578
Views: 318293

Re: Preferreds

But at the very least, this currently "left-for-dead" group of preferreds might at least start getting some media attention once these "oh-so-hated" resets as a whole start paying dividends that put to shame the dividends being paid by perpetuals. Check back in two years... I am sure you are right that the average dividends on reset will increase over next two or more years as they reset while GOC5 is high. But, if we want to buy NOW, we don't get to take advantage of that perceived benefit. That 38c/quarter dividend 2 years from now is equivalent to a yield on par of about 6%. What would market price then be? Maybe close to par if GOC is down to 1.5%? Meanwhile, perpetuals can be bought now with 7% yield on purchase pr...
by Springbok
22 Oct 2023 09:55
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Preferreds
Replies: 2578
Views: 318293

Re: Preferreds

I appreciate you all on the preferred shares discussion. I consider preferred shares are important part of my FI assets. Looks like the price of preferred shares keep going down recently: TD.PF.I and GWO.PR.L as example. Is higher yield on long term bonds the main reason? If you already own those two, nothing will change the yield that you get on your purchase price. Both have healthy present and future yields! Unless you were thinking of trading them, the market price is of no consequence. (At present if purchased Friday, GWO.PR.L (perpetual) 7.07% and TD.PF.I (NVCC Rate Reset) 7.2% for next 4 years with reset after that at 3.01%+GOC) To remain competitive, market will cause yields on pfds to vary in concert with other interest rates (not...
by Springbok
18 Oct 2023 19:37
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Preferreds
Replies: 2578
Views: 318293

Re: Preferreds

Clason wrote: 18 Oct 2023 18:59
Whether the distribution is paid out or re-invested by the borrower, compounding methods are still applicable.
In order for pfds to be considered compounded, surely the distributions would have to be re-invested in the same preferred and at same yield as original purchase? How would you do that??
by Springbok
18 Oct 2023 15:35
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Preferreds
Replies: 2578
Views: 318293

Re: Preferreds

jiHymas wrote: 18 Oct 2023 10:49
If I understand you correctly, I suppose that could be called Cash-on-Cash Yield. For comparing two investments, it will differ from "regular" yield calculations in that the later-dated cash flows will have a greater relative weight in the C-o-C calculation than they do using "regular" weights, which will be discounted more due the greater time since investment.
That is more or less how I looked at it. The slight differences in time value of distributions likely minimal compared with the GOC5 rate that had to be guessed at. And, as mentioned, we don't normally reinvest the distributions in the same shares which makes compounding difficult to calculate :)
by Springbok
18 Oct 2023 09:42
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Preferreds
Replies: 2578
Views: 318293

Re: Preferreds

And let's not even discuss how to present that yield in terms of a useful number for comparisons: what conventions are you using to express that yield? Compounding annually (IRR)? Compounding semi-annually (like most bonds)? Compounding quarterly (like most preferreds)? Compounding daily (money market instruments, which use an entirely diffent formula)? Compounding conventions are a whole 'nuther ball of wax that regularly trip up professionals. I am a bit confused about this. Our individual preferreds pay a quarterly dividend in cash. That is not normally re-invested in the same preferred. We cant really buy small amounts of pfds. The dividends are either spent or re-invested in something else and unlikely at the same yield. Bonds or GICs...
by Springbok
17 Oct 2023 18:05
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Preferreds
Replies: 2578
Views: 318293

Re: Preferreds

"Please check my math - I did this on back of envelope " Springbok, I used James' Rate Reset Calculator from Prefblog and achieved "7 year equivalency" for TD.PF.E at a much lower GOC rate. I entered: current date current price 17.40 call date oct 31 2028 call price assumed the same as current price 17.40 reset spread 2.87 GOC rate assumption at reset date 3.00% The calculator then showed a coupon rate of 5.87% after reset and an annualized yield to call over the next 7 years of 7.03% ... basically equivalent to your GWO. The nuance, of course, is that your GWO is "perpetual" and the assumed GOC rate can drop! You are right, I was just checking it using better but still simple minded tools, and came back to ma...
by Springbok
17 Oct 2023 16:32
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Preferreds
Replies: 2578
Views: 318293

Re: Preferreds

I mentioned a while ago that RBC has perpetuals that yield 6%. I use RBC as an example because they are the only bank I know to have perpetuals. I mentioned previously that TD has a reset (TD.PF.E) that will reset in 2025. If interest rates went to zero you would still get a yield of just over 4%. There are likely better choices than those RBC NVCC perpetuals - the last standing perpetuals issued by a bank (P2M rating). Maybe choose one of the insurers - they have better credit rating. (for example GWO.PR.S $18.54, 5.25%, 7.07% CY, P1L) Some of the insurance perps have current yields of about 7% which of course you would get now and perpetually! TD.PF.E has a spread of 2.87%. Trading at $17.40. Current yield 4.66% (until 10/31/2025 if you ...
by Springbok
15 Oct 2023 10:00
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Preferreds
Replies: 2578
Views: 318293

Re: Preferreds

rhenderson wrote: 14 Oct 2023 17:52 Last week I bought the other min. reset, EMA.PR.H, that recently reset at 6.25%. It's now paying $ 1.58 until 2028, that's 8.23% on the purchase price of $ 19.20. :)
Yes, I see that it just reset. Good yield for 5 years! I chose EMA.PR.J when I bought it a while ago because of it's higher spread. (328 vs 254) but lower min. It seemed to make sense at the time. Now not so much :(

EMA.PR.J resets in May 2026, but who knows what GOC will be then? I have 1000 and paid $25. Now trading at $17 :(. Question is to continue earning 4.24% on $25 ($1060 pa) for 32 months and hope for a reset in the 7.5%+ on par range. Or sell and buy something like a perpetual yielding 7% now and forever. Something to think about today :)
by Springbok
14 Oct 2023 16:41
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Preferreds
Replies: 2578
Views: 318293

Re: Preferreds

I was shopping GWO.PR.G, H and I today. End up buying GWO.PR.H, with the yield of 7% perpetual. I am stuck with MFC.PR.B with only 4% perpetual. It was great two years ago when GIC was 0.5%. I keep telling myself not to look at the losses on book, but the 4% dividend every quarter. :lol: I had a bond mature in TFSA, so with nothing attractive in bond market, I also shopped for a perpetual. Because we already have a number that fall under the Power Corp and Brookfield umbrellas, I went with an Empire Life issue - ELF.PR.H, 5.5% div, yield 7%. 2H credit rating. Price of course dropped right after my buy went through :cry: I am sure many of us have gics & bonds with low yields bought during initial covid uncertainty or before. I know I so...
by Springbok
13 Oct 2023 12:02
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Preferreds
Replies: 2578
Views: 318293

Re: Preferreds

ole'trader wrote: 12 Oct 2023 22:26 Just spent 60-90 minutes quickly reviewing the 20 prospectus'
"Weird terms" is an understatement - and will take far more time to understand clearly
Only 3 of the 20 BCE pfds listed above by Thurman are Rate Resets (K,M & Q). The rest are all floaters or fixed floaters with several different methods of determining dividend payments. Given the high yields on the floaters, probably makes sense for BCE to buy them back?