Mary Keetch Financial Services

GIC

Need a guaranteed income in retirement? Tired of getting less than 5% on your GIC’s?
Check out this article if you are ready to retire now:  https://www.empire.ca/docs/pdf/INP-0147-ClassPlusScenarioInRetirementTakingIncomeNow-EN-web.pdf

Check out this article if you have a few years to go and will take income later:  https://www.empire.ca/docs/pdf/INP-0146-ClassPlusScenarioSavingForRetirementTakingIncomeLater-EN-web.pdf

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%

2010     1.78%                                   1.85%                                      0.07%

2011      2.91%                                   1.90%                                     -1.01%

 

* 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

For date from 2010 to 2011 obtained from http://www.inflation.eu/inflation-rates/canada/historic-inflation/cpi-inflation-canada-2011.aspx and GIC rates for 2010 and 2011 obtained from gicinvest.net

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


  • Daily GIC Rates

    IND. $25k min CORP. $25k min
    1-Yr 2.55% 2.55%
    2-Yr 2.75% 2.75%
    3-Yr 2.8% 2.8%
    4-Yr 2.85% 2.85%
    5-Yr 3.0% 3.0%
    Manulife Savings/TFSA/RSP .90% 30 day GIC 1.0%
    Rates are subject to change please call (519) 667 0555 for exact rate for amount your investing. Minimums start at $1,000 Updated June 19, 2017 in Can $ Source: GICinvest.net

    Links:   Assuris  |  CDIC  |  DICO