• Standard GIC Features
  
• GIC Returns can differ by
  
• Ladder Approach to GIC Investing
  
• Different Types of GIC's

STANDARD GIC FEATURES

1. SAFETY OF YOUR INITIAL INVESTMENT:

• a secure form of investment where at the end of the term of the GIC you are guaranteed to get back your initial investment plus any interest income if earned.
  
• CDIC provides extra protection for $60,000 of principal
  

2. PREDICTABILITY OF INCOME:

• GICS provide a predictability of income since the interest rate on most types of GICs is guaranteed and thus the investor knows in advance the future value if held to maturity
  
• or if investor has elected to receive regular interest payments they will generally know these amounts in advance
  

3. GROWTH POTENTIAL

• historically, the stock market has outperformed both cash and fixed-income holdings such as bonds and GICS over the long term
  
• usually the longer the term of the GIC the higher the interest rate on the investment
  
• can be registered as a basic RRSP or RRIF for tax deferral
  

4. FLEXIBILITY

a) Investment terms ranging from one day through 30 years
b) Fully and partially cashable GICS
c) GICs with guaranteed interest rates that increase each year
d) US dollar term investments available
e) GICs linked to the performance of certain stock market indices with guaranteed security of your initial principal
f) Creating a portfolio of GICS with staggered maturity dates to attain interest rate diversification

5. AVAILABILITY

• can be purchased anytime from banks, trust companies, credit unions and life insurance companies
  

6. LIQUIDITY

• most require investor to hold until maturity or will inflict penalty charges for early withdrawals if permit withdrawals
• also most financial institutions will re-invest a GIC upon maturity for a similar term unless instructed otherwise before the maturity date passes
  

This material is for information purposes only and should not be construed as legal or tax advice. Every effort has been made to ensure its accuracy, but errors and omissions are possible. Individual circumstances may vary and specific legal and tax advice is recommended. Future tax changes and market conditions may affect this information.

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