Investment advice for GICs

This topic contains 9 replies, has 2 voices, and was last updated by  Oswald 8 months, 3 weeks ago.

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    Basically, I’m looking for any useful investment advice for GICs (aka. Guaranteed Investment Certificates).

    1.) How risky are they to invest in?

    2.) How flexible are they in the short-term vs. long-term?

    3.) Is there anything I should be careful of when investing in GICs? What other factors should I consider?



    GICs are a pretty safe investment with very little chance of losing your investment. It’s considered a low-risk investment, so you’re basically guaranteed of getting your initial investment back plus a little extra.

    It is also a pretty versatile investment. In other words, you can invest it for short term, medium as well as long term goals. The terms can be for several months or even several years.



    What about interest rates? Are there good interest rates with GICs?



    For this type of investment, the interest rates aren’t great. This is low risk, so you don’t get the best rates. You will get higher rates if you invest for longer periods.



    If you really want to learn more about GICs and rates and get good advice, you should contact Omnia Direct. I use them and I think you will benefit from their services just like I have.



    You could play around with various strategies to get the best bang for your buck. People invest in GICs because it’s a lot safer than other investments. The drawback is the payout won’t be a lot.



    If profit is a factor, you could always make investments with higher interest. However, it also means you can lose a lot of money, since it is riskier. Do you want to take that chance, especially in THIS economy?



    You can use a method known as laddering to get the most out of your investments. You can divide your investments into several GICs at different rates and maturity dates.

    To give you an example, let’s say that you have a GIC for one year and another at two years and one at five years. As it matures, you will have access to that money. You can then invest again in a new GIC.



    Remember, longer term GICs have the best interest rates. Using the laddering strategy, you can try to maximize your returns while reducing the risks.



    The best thing to do to make sure you get it right is to either speak to your bank. Then, you can confidently go ahead and invest based on their advice.

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