When saving for a major purchase or for retirement there are only 4 basic options
A
B
C
D
BANKS up 0.25% up1.25%
* Taxable
* Liquid maybe
* CD's
* Savings
* Chequing
ANNUITIES up 3.0% - up 5.0%
* Tax Deferred
* Zero Liquidity
* LIMITED GROWTH
STOCK MARKET up 30% down 30%
* ZERO PROTECTION
VERY RISKY
YOU COULD LOSE ALL OF IT
* Taxable
* Liquid
* RRSP's / TFSAs'
* NON-REG RRSPs
* Stocks
* Bonds
G. I. F. FUND up11.5% - up 18.25%
* Zero Risk
* RRSP / TFSA etc
* NON-REG RRSPs
* Liquid
* Diversified
Let's look at an example of $10,000 over 5 years in each of the above also inflation
HUGE ADVANTAGE GOES TO THE GUARANTEED INVESTMENT FUND, YOU CAN ELIMINATE LOSSES BY LOCKING IN GROWTH.
1. Inflation went up to $11,000.00
2. Bank monthly income fund closed at $9,461.00 DID NOT KEEP UP WITH INFLATION
3. ANNUITIES closed at $12,155.00 little better than Inflation, BUT YOU CAN NOT GET ACCESS TO THE MONEY EVEN IN EMERGENCIES, LIKE YOU NEED A NEW ROOF, OR YOUR CAR BLEW UP,
4. STOCK MARKET INVESTING CLOSED AT $15,298.00 IT GOES UP AND DOWN LIKE IN 2008 - 35% DROP. YOU ASSUME ALL THE RISK.
5. G.I.F. a moderate blend of Zero Risk funds. closed at $18,140.00 ... also these are very flexible for your changing needs.. Locking in growth, complete safety... peace of mind..
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