You’ve probably been told that diversifying your investment portfolio is a great idea – and it is! Diversification is the spreading of your investments over different types of investment products to reduce risk and increase the likelihood of achieving the returns you need to meet your financial goals.
There’s just so many options out there for you, and let’s be honest… it can be a little overwhelming. One of these investment types is a Guaranteed Investment Certificate (GIC).
So how do you know if a GIC is right for you? Why should you invest your money in a GIC over a savings account or another of the many investment options out there? And which GIC option should you choose?
Choosing to invest your money in a GIC has some great benefits. Like the name implies, a GIC is safe and secure – your original deposit amount as well as a fixed interest rate is guaranteed with no fluctuations and market uncertainty. It is also protected. The Financial Regulatory Authority of Ontario (FSRA) insures your GIC investment through the Credit Union. All qualifying deposits in most registered accounts – LIRA, LIF, RRSP, RRIF, RDSP, RESP, TFSA – have unlimited insurance. GICs in non-registered accounts are insured up to $250,000 per person! Make sure to ask your Advisor for more details.
Investing in a GIC is also convenient and offers flexible term options. Your lifestyle, your goals, and where you are in life are but some of the factors that help decide if a GIC is right for you, and if so, which one. Everyone is unique, so what is right for someone saving for their first home or planning their retirement, may or may not be what you need right now. A GIC offers flexible terms that fit your goals and can be set up relatively quickly, so you can start earning interest right away. Even better – your GIC will earn a competitive rate that’s higher than a typical savings account!
At Kindred, all of our standard GICs are validated as Socially Responsible Investments, which means your GICs can help build a more economically, socially, and environmentally sustainable world. We offer a variety of GIC options to meet your needs. Choose your term – anywhere from 30-day to 5-year – or choose from one of our unique GICs that give back to your community like our Affordable Housing GIC or our Community Inspiration GIC.
At Kindred, our Wealth and Investment team will work with you to help determine what products or services best fit your particular needs and goals. While our interest rates follow the lead of the Bank of Canada, your financial advisor can help you determine how best to diversify your portfolio and get the best return.
Speak with a member of our Wealth and Investment team today. We’re here to help you Make Peace with Your Money®! You can ask us anything.