Wants to force bank to take action

Question: I have a company pension plan that was invested in locked-in GICs through CIBC. I would like to transfer these funds to a LIRA using mutual funds in order to improve the return. Can I force the bank to transfer these GICs BEFORE the maturity date? – John

Gordon’s answer: Hah! Sorry — but the idea of forcing a bank to do anything prompted a chuckle. Persuade them, possibly, although in this situation you will need to be innovative.

You actually want to do two things. One is to transfer the GICs from the pension plan to a LIRA. You will have to deal with the plan administrator on that issue. The second thing you want to do is to cash the GICs early and reinvest the money in mutual funds. That’s where the bank comes in.

If the GICs are locked in, CIBC can tell you to take a hike if you ask to redeem them early. Or they could assess substantial penalties. However, a little friendly persuasion might convince them to cut you some slack. Here’ how.

Go to the branch where you purchased the GICs and ask to speak to the manager or a senior investment advisor. Explain what you want to do. Tell them you will set up the LIRA with thr branch and use their services to acquire mutual funds if they will agree to early redemption of the GICs. They might just go for it because the fund business could be quite lucrative for them. It certainly won’t hurt to try.

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