Author: News Canada
(NC)—Both first time and seasoned investors should consider term investments to provide stable, predictable performance and to diversify their portfolio. Term investments provide peace of mind for those with a low tolerance for risk or who rely on their investments for income.
“Term investments are an integral part of any portfolio,” says Julie Sheen, Vice-President, BMO Term Investments. “Your local bank branch can help you to determine what portion of term investments you should incorporate into your portfolio.”
Term investments, such as Guaranteed Investment Certificates (GICs) fully guarantee your principal investment and provide a stable, predictable rate of return. These types of investments can be easily converted into cash and tend to be the safest category of investment options.
It is this security that many risk-averse investors enjoy. Term products are designed to help reach short-term financial goals, such as buying a car or planning a family vacation, as well as to diversify a long-term portfolio.
Establishing your investment time horizon will help determine what percentage of your retirement savings portfolio should be held in term investments. If you have many years before retirement, consider holding only a small portion of your portfolio in security-oriented products. If retiring sooner, you should consider moving your higher risk investments into lower risk products. You do not want to risk losing any of your savings, as these will soon become a source of income. An investment professional will be able to help you determine the ideal mix of investments for your individual needs.
Information provided by BMO Financial Group. For more information visit www.bmo.com/gic.
- News Canada
You can also get further information on GIC’s from one of our independent brokers. Use our GIC Form to talk independent broker who will get you the highest interest rate.