Long-Term GICs – A Good Addition to Your Portfolio Oct 21st

Have you checked the interest rates on GICs lately? Today’s low interest rate environment has made many investors hesitant to plunk their savings in GICs, especially with the paltry returns offered – but they remain a solid option for risk-adverse investors seeking a steady return, especially when locked in for the long term.
The Benefits of Not Cashing Out

There are several benefits to locking into a non-cashable GIC for the long term (30 to 40 months) that investors often overlook.
“Generally, the longer the term, the higher the interest rate. That being said, you want to look at the spread to see if it’s worth going for a longer term,” says financial educator Jim Yih, owner of Retirehappy.ca and author of A Simple Guide on Guaranteed Investing.
Is Now a Good Time to Lock In Long Term?
With interest rates potentially rising within the next year, you may be wondering if it’s a wise move right now to lock in long term with GICs. The good news is with GIC laddering (buying into several GICs with one timed to mature each year), you don’t have to worry about timing the market…