Guaranteed Investment Certificates (GICs) are low risk investments that earn interest for a specific amount of time. GICs are more flexible now than they have been in the past. Financial institutions offer a variety of payment and redemption options that make them a more attractive choice for investors.
GIC terms vary from one month to 25 years or more. They have low fees, are low risk and financial institutions offer insurance for your investments that guarantees that your money is secure. Financial institutions that offer GICs include insurance companies, trust companies, credit unions, and banks.
Macnaughton & Ward Financial Services shops the market and can give the current rates of more than twenty financial institutions.
Laddering is a relatively simple concept where investors purchase GICs with differing maturing dates and thus different rates of return.
If you have $100,000 to invest, for example, divide the investment into equal amounts of $20,000:
Any maturing GICs would be invested for 5yrs.