GICs can be a good option for both older and younger investors: Expert
Amid market volatility, one financial expert said many investors are looking for low-risk opportunities in the form of guaranteed investment certificates (GICs).
Jason Heath, managing director at Objective Financial Partners, said in an interview with BNN Bloomberg on Thursday that stocks can be a great longer-term investment option, but are not suitable for every investor.
“There's a renewed interest from investors and from investment professionals alike. It's been 15 years since we've seen GIC rates like this. And for a long time, they haven't been very enticing,” he said.
Heath said GICs can sometimes be a good fit for younger investors as the funds can be used for things like tuition or a down payment for a home.
He said GICs can also be a great option for older Canadians who can build a “GIC ladder,” which involves purchasing some combination of a one-year, two-year, three-year, four-year and five-year GIC. Heath said this can provide funds each year and mitigates interest rate-related risks from having funds all come due at the same time.
Check out the full video at the top of the article to learn more.