What To Do With the Cash in My RRSP and TFSA Brokerage Accounts

The great thing about the stocks I own in my TFSA and RRSP is that they pay dividends monthly or quarterly. That cash starts to pile up though after a few months, especially if I don’t see anything I want to invest in for the long term. If I put in a new contribution without having a plan for it, my stack of cash can grow into the thousands. That’s what happened recently in both my TFSA and my RRSP brokerage accounts and I decided to park the cash temporarily until I decide how to use it.

What Cash Savings Options Does BMO InvestorLine Offer for TFSA and RRSP Accounts?

You can have a RRSP with investments in Canadian dollars or American (US) dollars at BMO InvestorLine. So they offer two ‘high interest’ savings account mutual funds, one in USD and one in CAD. They also offer a cashable GIC.

What Interest Rates Are AAT770 and AAT780 Paying on Cash Investments at BMO InvestorLine?

Today, on March 18, 2017, the rates are

  • AAT770 0.75% on Canadian dollar, CAD, investments
  • AAT780 0.50% on American dollar, USD, investments

The money is deposited as if you are buying a no-fee mutual fund. It takes the trading day plus one business day to settle.

What Interest Rates are Cashable GICs Paying at BMO InvestorLine?

Today, on March 18, 2017, they are offering

  • a one-year GIC, cashable after 30 days, which pays an annual interest rate if held to maturity of 0.85%.

For reference, a one-year-fixed-term GIC (which cannot be cashed before the year is up) is paying an annual interest rate of 1.25%.

What Cash Savings Options Does RBC Direct Investing Offer for TFSA and RRSP Accounts?

RBC Direct Investing offers two ‘high interest’ savings account mutual funds, one in USD and one in CAD. They also offer a cashable GIC.

What Interest Rates Are RBF2010 and RBF2014 Paying on Cash Investments at RBC Direct Investing?

Today, on March 18, 2017, the rates are

  • RBF2010 0.75% on Canadian dollar, CAD, investments
  • RBF2014 0.45% on American dollar, USD, investments

What Interest Rates are Cashable GICs Paying at RBC Direct Investing?

Today, on March 18, 2017, they are offering

  • a one-year GIC, cashable after 30 days, which pays an annual interest rate if held to maturity of 0.70%.

For reference, a one-year-fixed-term GIC (which cannot be cashed before the year is up) is paying an annual interest rate of 1.40%.

What Cash Savings Options Does CIBC Investor’s Edge Offer for TFSA and RRSP Accounts?

You can have a RRSP with investments in Canadian dollars or American (US) dollars at CIBC Investor’s Edge. So they offer two ‘high interest’ savings account mutual funds, one in USD and one in CAD. They also offer a cashable GIC.

What Interest Rates Are ATL5000 and ATL5500 Paying on Cash Investments at CIBC Investor’s Edge?

Today, on March 18, 2017, the rates are

  • 0.75% on Canadian dollar, CAD, investments
  • 0.55% on American dollar, USD, investments

What Interest Rates are Cashable GICs Paying at CIBC Investor’s Edge?

Today, on March 18, 2017, they are offering

  • a one-year GIC, cashable after 30 days, which pays an annual interest rate if held to maturity of 0.5%.

For reference, a one-year-fixed-term GIC (which cannot be cashed before the year is up) is paying an annual interest rate of 1.26%.

So now I know my options, I can park my cash. It doesn’t look like I should leave it sitting idly by for too long at those rates though!


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Do you have some cash parked in one of your brokerage accounts? Have you found a better way to make money with your cash while waiting to invest? Please share your experiences with a comment.

How Much Should I Budget for Food If Nursing Homes Budget Is $8.33 per day?

The Ontario provincial funding rate for food for residents in long term care facilities, most of whom are seniors, has always been lower than seems reasonable. In 2014 the amount was $7.80 per person per day for the “raw food.” That number was so low that a public outcry managed to get a small increase to $8.33 per person per day. It’s been stuck there ever since, though, despite the rate of inflation for food and the drop in the value of the Canadian dollar versus the American dollar which affects the prices of imported fruits and vegetables. Reading an article in The Star made me wonder what I should budget for our food costs if the government believes that a person can eat healthily for $8.33 a day.

Why Does the Government Provide More Money for Prisoner’s Food Per Day than for Pensioners?

One fact has always been extremely upsetting in the provincial funding for food: the funds provided for residents in Long Term Care homes are lower, per person, than those for prisoners.

At first, it may seem vaguely reasonable. Aren’t more prisoners younger men who have a higher caloric need than most pensioners who are often older women?

But then you realize that more of the older residents have special dietary needs. You shouldn’t eat grapefruit, for instance, if you taking certain medications. If you are diabetic, you may need to carefully balance the amount of carbohydrates you eat at each meal. Overall, due to reduced ability to absorb nutrients, you need to maximize the amount of fruits and vegetables you eat to increase the likelihood of receiving proper nutrition.
And, of course, it seems “morally” wrong to feed wrong-doers better food than older or disabled persons.

In March 2017, the Ontario government is paying $8.33 per person per day for raw food costs for each resident in a long term care facility. It is paying $9.73 per day for prisoners.

That just seems unjust.

What Could I Afford at $8.33 Per Day for Raw Food Costs?

I realized that this question has an attached question: where am I living? If I live in the Greater Toronto Area in Ontario, I have access to a large variety of food stores. Within walking distance of my suburban home (yes, some suburbs are walkable!) I can count six grocery stores, a butcher, a bakery and an organic greengrocer. Only two of those grocery stores belong to a major Canadian chain. The others are independents who tend to compete well on pricing.

When I think of one of our vacations to the Maritimes, though, I remember being unhappy with the fruit and vegetable selections at both the big chain grocery stores in Bridgewater, Nova Scotia. The prices were between reasonable and high, but the quality was terrible. And many items I can easily get here were not even for sale.

Where you live will likely play a big factor in your grocery budget. If you have to pay $7 to get a bus to and from the store, that is another big cost that affects those that can least afford it.

Budgeting for a Typical Day’s Food And Its Costs

Ok, let’s try any way.

Breakfast
1 /2 cup of oatmeal
1 / 4 cup of milk
1 serving of coffee

Snack
2 clementines

Lunch
2 cups nappa cabbage
1 /4 c craisins
1 english muffin
1 /4 c pork tenderloin, leftovers
1 tea bag

Snack
1 gala apple

Supper
1 /4 of a store-made roast chicken
1 cup broccoli
1 /4 cup cherry tomatoes
1 cup jasmine rice
2 home made chocolate chip cookies

Snack
1 /2 cup Rice Krispies
1 /2 cup milk
1 mini Kit Kat

My total cost? About $9.

Could I do this in another location though? I doubt it. The fruits and vegetables I buy almost always are purchased at the independent grocery stores. They have noticeably lower prices. I’m sure that many people who don’t live in a “food oasis” like this must pay much more for the same food.

What Will I Budget for Food Costs for Retirement?

I don’t know exactly what I should budget for food costs for retirement, but I know it will be more than $8.33 per day.

It’s especially important to remember that the $8.33 per day includes

  • Any food lost due to spoilage. (Ever open a carton of eggs and find one is cracked? Opened a head of lettuce and found brown leaves in the middle?)
  • Any food for special holidays such as a turkey, fancy dessert, cheeses.
  • All snacks even the occasional candy bar or soda pop.


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