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How to choose the right GIC for your goals.

It may seem particularly challenging right now to save for the future, but we promise there’s a way. Even though inflation and rising interest rates have dimmed economic forecasts for the next couple years, there are still great savings and investing opportunities available.

You could put your money in a savings account. That would help you build a rainy day fund for big purchases, emergencies, vacations – just about whatever you’re planning. Having lots of cash on-hand can even make applying for future loans easier, as it proves you’re creditworthy because savings can demonstrate that you’re financially capable of weathering a rough economy with money you’ve put aside for unexpected events.

However, while savings are essential to achieving your financial goals, the interest you earn on them might not be enough for you to keep up with inflation. The good news: there’s a way for you to save and grow your funds at a competitive rate.

Get rates on your terms.

If you’re looking for an investment with a bit more flexibility, ask your advisor about redeemable GICs. They’re secure, low-risk investments that offer the flexibility to redeem your savings with interest, any time after a certain number of days. Some come with a tiered rate of return that grows as you get closer to term maturity. Your principle investment is always protected and with a guaranteed return, the longer you stay the more it pays.

Invest in the market with less risk.

Most market-linked GICs provide the guaranteed minimum returns of regular GICs, with the potential for extra growth that comes from being linked to the stock market. They’re ideal investments for people who want to protect their initial investment while gaining low-risk exposure to global stock markets.

Grow your funds even more with mutual funds.

Investing in the stock market long-term is ideal for growing your savings and making them more resilient against inflation. The potential for high rates of return on your investments gives you the opportunity to reach your goals sooner.

With mutual funds, you don’t have to stress about picking stocks and building a portfolio. Expert market analysts craft these funds in order to provide you with a diverse set of stocks that meet your particular needs, whether you’re a conservative, moderate, or growth-focused investor.

Speak with your advisor about which mutual funds are right for you.

Keep your options open.

When it comes to investing, flexibility is key. Mutual funds are better for long-term goals. GICs can help you save for short-term needs or keep your money growing for months and years at a time. Keeping money in a savings account lets you make the most of opportunities as they arise. Each of these options come with their own benefits. So, when you’re thinking about how to save for the future, why limit yourself to just one option?

Speak with an advisor today.

It may seem harder than ever to save for the future with inflation at record levels and interest rates not far behind–but it’s not impossible. Working with an advisor who will take the time to listen and understand your needs and give you the kind of advice that makes sense for your unique situation is the best place to start. Our advisors deliver all this and more, because what matters to you matters to us.

Let us show you how you can grow your savings and earn a little extra today. Speak with one of our investment advisors when you visit a Coast Capital branch or call us at 1.888.517.7000.



The stuff we have to say.
Coast Capital Savings Federal Credit Union provides advice and service related to deposit, loan, and mortgage products. Coast Capital Wealth Management Ltd. provides investment and financial planning services. Worldsource Financial Management Inc. provides advice and service relating to mutual funds.
Mutual funds are not guaranteed or insured by any financial institution, government, or other deposit insurer. Mutual fund values change frequently and past performance may not be repeated. Commissions, trailing commissions, management fees, and expenses may all be related with mutual fund investments. Important information about mutual funds is contained in the relevant fund facts and simplified prospectus. Please read the fund facts carefully before investing.
The views expressed here are those of the authors and writers only and not necessarily those of Worldsource Financial Management Inc. The information is for general information purposes only and is believed to be accurate, however, no warranty can be made as to its accuracy or completeness. This information is not intended to provide specific personalized investment, financial, legal, accounting, or tax advice. Please contact us to discuss your particular circumstances. It may also include forward-looking statements concerning anticipated results, circumstances, and expectations regarding future events. Forward-looking statements require assumptions to be made and are, therefore, subject to inherent risks and uncertainties. There is significant risk that predictions and other forward-looking statements will not prove to be accurate.

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