GIC
Need a guaranteed income in retirement? Tired of getting less than 5% on your GIC’s?
http://manulifegifselect.ca/incomeplus/product_overview_video
Did you know that by investing with a life insurance company for Non-registered you gain these additional benefits:
- Ability to name a beneficiary, and by naming a beneficiary you avoid probate costs upon death
- Potential Creditor Protection
- You may invest up to 10 year GIC and be covered by Assuris to protect principal
Here is some interesting information on how Inflation affects your returns:
Year Inflation* 1 year** GIC index Real Rate of Return
1980 10.10% 12.71% 2.61%
1981 12.40% 17.18% 4.78%
1982 10.9% 15.07% 4.17%
1983 5.8% 9.79% 3.99%
1984 4.3% 11.18% 6.88%
1985 4.0% 9.43% 5.43%
1986 4.1% 8.82% 4.72%
1987 4.4% 8.5% 4.10%
1988 4.0% 9.72% 5.72%
1989 5.0% 11.43% 6.43%
1990 4.8% 12.20% 7.4%
1991 5.6% 8.66% 3.06%
1992 1.5% 6.1% 4.6%
1993 1.8% 4.8% 3.0%
1994 0.2% 5.87% 5.67%
1995 2.2% 6.25% 4.05%
1996 1.6% 3.64% 2.04%
1997 1.6% 2.82% 1.22%
1998 0.9% 3.69% 2.79%
1999 1.7% 3.89% 2.19%
2000 2.7% 4.77% 2.07%
2001 2.6% 2.67% 0.07%
2002 2.2% 1.63% -0.57%
2003 2.8% 1.72% -1.08%
2004 1.9% 1.2% -0.7%
2005 2.2% 1.53% 0.67%
2006 2.43% 2.78% 0.35%
2007 2.05% 2.98% 0.93%
2008 2.375% 1.2% - 1.175%
2009 0.31% 0.4% 0.09%
* Source: For data from 1980 to 2004 See attached article http://www.advantage4u.ca/documents/education/en/inv/gic_dilemma.pdf
For data from 2005 to 2009 obtained from Bank of Canada CPI http://www.bankofcanada.ca/en/index.html
Other Useful Links:
If you are investing in GIC’s through a life insurance company http://www.assuris.ca/
If you are investing in a GIC through a bank http://www.cdic.ca/
If you are investing in a GIC with a Credit Union http://www.dico.com/DICOpublic.nsf/main/MainPublicEnglish?OpenDocument
Interesting articles through a website established by the Ontario Securities Commission to promote education http://www.getsmarteraboutmoney.ca/Pages/gSrchResults.aspx?cx=008489766705386019383:3btwbgunbbi&ie=UTF-8&cof=FORID:9&q=GICs#899
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