If you live in Canada you might be aware of something called a guaranteed investment certificate. It means that as an investor, you can be sure that you are going to get a certain level of return within a specific time period. An example of this would be that you could look forward to getting 25% return on your investment within 5 years. As a result of GIC rates, the current state of the economy and the levels of uncertainty, you will see that there are more and more people that are investing in this type of thing.
One of the biggest advantages of the GIC is that the rate is always guaranteed so you know what you are getting. This is something that many people find is a really good side of investment in a climate which is dogged by uncertainty. They know what they are going to get back and this means that they can put their money into something worthwhile instead of worrying about an investment that could actually just lose them money at the end of the day. The way that guaranteed investment certificates are positioned means that they are a great investment and there is lots of certainty.
The type of rate that is used is very much dependent on the certificate that you choose and then of course, also the amount of time that the investment will be made for. The secret here is that the longer you invest the more money you are going to get out. So if you want to maximise your investment, it is definitely better to think in terms of long term goals for your money. This being said, the GIC is flexible and you can invest anywhere from six months to ten years. You are the one who determines which is going to be best and this means the best result for you.
The Bank of Canada also has a role to play when it comes to specifying the rate of return. The country's central bank will determine the interest rate and this will lead to the type of rate that you can get on your investment. They can't be changed though and this will mean that there is a good deal of influence on your investment.
You will find that there is more than just one type of GIC investment that you can look at and there is one that is potentially higher gain than others. Having said this though, it is important to note that it also carries with it a higher amount of risk as well. This is a type of GIC that is called market growth equivalent or stock indexed GIC which means that if the market grows then you will get the same rate of return.
A period of three years of investment guarantees you a maximum return of 25% and this is unfortunately the highest that you can go. Another potential downfall to the GIC investment is that if the stock does lose or perhaps doesn't make any gains then you could find that you are not going to get an interest rate above 0%.
One thing that you will have to accept is that you are only going to get a 25% return on a three year investment period.
So no matter which investment type you decide to take, you can rest assured in the knowledge that with GIC rates you are always going to do better than you would with another type of investment vehicle. So go ahead and make the most of your future. - 31387
One of the biggest advantages of the GIC is that the rate is always guaranteed so you know what you are getting. This is something that many people find is a really good side of investment in a climate which is dogged by uncertainty. They know what they are going to get back and this means that they can put their money into something worthwhile instead of worrying about an investment that could actually just lose them money at the end of the day. The way that guaranteed investment certificates are positioned means that they are a great investment and there is lots of certainty.
The type of rate that is used is very much dependent on the certificate that you choose and then of course, also the amount of time that the investment will be made for. The secret here is that the longer you invest the more money you are going to get out. So if you want to maximise your investment, it is definitely better to think in terms of long term goals for your money. This being said, the GIC is flexible and you can invest anywhere from six months to ten years. You are the one who determines which is going to be best and this means the best result for you.
The Bank of Canada also has a role to play when it comes to specifying the rate of return. The country's central bank will determine the interest rate and this will lead to the type of rate that you can get on your investment. They can't be changed though and this will mean that there is a good deal of influence on your investment.
You will find that there is more than just one type of GIC investment that you can look at and there is one that is potentially higher gain than others. Having said this though, it is important to note that it also carries with it a higher amount of risk as well. This is a type of GIC that is called market growth equivalent or stock indexed GIC which means that if the market grows then you will get the same rate of return.
A period of three years of investment guarantees you a maximum return of 25% and this is unfortunately the highest that you can go. Another potential downfall to the GIC investment is that if the stock does lose or perhaps doesn't make any gains then you could find that you are not going to get an interest rate above 0%.
One thing that you will have to accept is that you are only going to get a 25% return on a three year investment period.
So no matter which investment type you decide to take, you can rest assured in the knowledge that with GIC rates you are always going to do better than you would with another type of investment vehicle. So go ahead and make the most of your future. - 31387
About the Author:
When you're deciding to buy a house, some of the factors that you have to take into account are mortgage rates. As mortgage rates are important for home-buyers, GIC rates are important for investors. If you're interested in a customized financial plan, remember to visit us.
