4.5 year – 2.60% + MORE Sep 29th

Some time ago, I wrote about my investing approach for a prolonged interest rate environment.    I wrote, while low interest rates are good for a few reasons (including great borrowing costs), prolonged interest rates have some big drawbacks:  they hurt fixed income assets like bonds and savings accounts and consequently hurt folks that are fiscally conservative.
With bond yields on the rise and possibly much higher going-forward I thought it might be interesting to share my investment approach for a rising interest rate environment.  After my three steps are done, I’d like to hear from you about your plans…
Step 1
Since our total debt comprises a modest car payment but also a fat mortgage, the first thing I’ll focus on as interest rates move higher is our mortgage debt; that’s our highest interest debt around 3%.  We’ll continue to pay down our mortgage using lump sum prepayment privileges, maybe even make a few more lump sum payments than before if we can.  If we keep after this mortgage beast we’ll be debt-free in 8 years…

This GIC rate is offered by Outlook Financial and was updated on 2013-09-16. Click on the link above to get more details or apply online.

This GIC rate is offered by Outlook Financial and was updated on 2013-09-16. Click on the link above to get more details or apply online.

TORONTO – Customers at North Shore Credit Union branches in British Columbia are greeted by a concierge, presented with a hot towel and invited to sit and sip a latte while doing their banking.
This type of environment — complete with spa music and paintings of the West Coast mountains adorning the walls — is the future of banking, according to North Shore chief executive Chris Cartliff.
“Our research was showing that clients perceive the process at financial institutions, of going through a financial plan and an annual checkup, much like they did going to a dentist,” he said from Vancouver.
So the credit union took it upon itself to transform nearly all of its 12 branches scattered across the province into “financial spas.”
It’s an unconventional approach but, in an industry where many of the services on offer are similar, financial institutions are under pressure to find ways to attract new customers or entice them away from the competition.
The banking industry has always been big business in Canada…

LISBON, Portugal – Portugal’s government says it won’t stop its unpopular austerity measures, even if it’s a big loser in Sunday’s municipal elections.
The election of mayors and councillors is the first nationwide ballot since the centre-right coalition took office two years ago, weeks after a 78 billion euros ($105 billion) bailout.
The voting has no direct bearing on the government, but the ballot is expected to reflect the public mood.
The outcome could also have consequences for efforts by the 17 nations that share the euro currency to end their bloc’s protracted financial crisis. Any political uncertainty in Portugal could fuel investor jitters about the eurozone’s commitment to restoring fiscal health amid growing fears the ailing country may need a second bailout next year.
Portugal is locked into a program of tax hikes and spending cuts in return for the bailout. But the measures have brought hardship, and the jobless rate stands at 16…