GICs, Annuities & Leveraged Loans
Our Financial Advisors offer expert advice for a wide range of investment services and products. They make recommendations based on their product knowledge and your personal situation.
GICs…if it's security you want
With GICs, you invest a sum of money for a specific period of time. At the end of that term, you are guaranteed to receive your full initial investment plus interest income on your money.
You always know exactly how much money you will be withdrawing when the GIC matures. While there is not the same opportunity for growth, there is zero risk of losing any part of your investment or making less than you were promised.
Annuities…work like life insurance in reverse
With life insurance, you pay a certain amount each month over many years so your loved ones will get a lump sum when you die. With an annuity, you pay a lump sum up front, and get income back each month over many years. The amount of your monthly payment will be higher if you buy an annuity when interest rates are high.
Examples of people who typically purchase annuities include those who:
- Require a dependable stream of income for life
- Require a dependable income for a specific time period
- Are not interested in making on-going investment decisions and want a simple investment
- Don’t want to worry about outliving their income
- Want to diversify their investment portfolio
Leveraged loans…if you can’t wait
Leverage loans mean simply borrowing money to invest, rather than saving and waiting. There are two primary benefits to investing with a leverage strategy.
- Allows you to make a large lump-sum contribution at the start of the investment period. This allows the entire investment to benefit from the power of compounding for the full investment period.
- Interest paid on loans for investment purposes are tax-deductible in most cases (tax deductibility of loan interest depends upon a number of factors, with the Income Tax Act providing the framework for determining deductibility).
Borrowing to invest is not for everyone and suits those with a higher risk tolerance. Your Stevenson & Hunt Financial Advisor can provide you with an outline of the benefits and risks associated with GICs, Annuities and Leveraged Loans.