It’s important to think long-term about ways to make money. One of the top items you should check off your financial to-do list is obtaining a Guaranteed Investment Certificate (GIC). This could be the ideal way for you to make the highest amount of interest on your investment. The good news is that this is one of the lower risks ways to do so. However, there are certain things you’ll want to know before selecting a GIC.
1. Consider the options
Taking the time to look at the pros and cons of both a fixed rate versus a variable rate can be helpful. Both of these differ in some ways and doing your research on these is essential.
For instance, a fixed rate GIC will always have the same rate from the time you purchase it until you cash it in later. On the other hand, the variable rate will continually change, and this may be a concern to many. However, you may get a much higher yield when you select a variable rate if the economy is good.
2. Your goals
You’ll want to consider all of your intentions before committing any GIC. Can you leave your money in it for a long time or will you need to take it out soon?
It’s important to be aware of your current financial status to help you make the right choice. The last thing you may want to worry about is having a steep penalty later due to cashing out too quickly.
3. Amount of money
Of course, one of the biggest things you’ll always want to consider first is how much money you have to invest. You don’t want to put too much cash in a GIC account if it’s going to translate to financial stress later.
Sitting down and thinking this through can save you both worry and concern. There’s little doubt that doing this before committing is the key to getting the best earning GIC rates down the road.
4. Think about making an income
If you’re trying to earn a monthly income from your GIC investment, you’ll want to have this set up correctly. It’s entirely possible to do so when you work with your lender to do so.
Of course, it may be in your best interest to get a monthly income that is paid to you. There are two ways you can do this. You can purchase a GIC that will give you regular interest payments. The amount of your income may vary based on the current rate if it’s a variable one.
5. Set up a GIC ladder
Another way you can get an income with a GIC is setting up a GIC ladder. This means your investment will mature at different times and you may have a rate that’s continually changing.
Being in charge of your finances is one thing you’ll always want to do. This means you’ll feel more secure and ready to enjoy the fruits of your labour. There’s little doubt that by doing the right things and avoiding the wrong ones, you can have the best possible results. Knowing some pertinent information before making a long-term investment of this type is crucial. You’ll stress less and be much more confident about your final decision when it comes to a GIC. Remain educated today to help you make a choice that you’ll be proud of in the long run!