GIC Ladder Investing Strategy.
Maximize Your Investment Return With A GIC Ladder.
GIC laddering is a strategy by which you are able to reduce interest rate risk for example by not being locked in to a GIC term and missing out on higher rates. Another "risk" it reduces is that it takes away having to guess what GIC term to choose to lock in your money. GIC ladder effectively gives you flexibility and makes your cashflow better.
You have a lumpsum of money you want to invest but are worried about tying it up into one investment for a period of time until the investment matures.
Creating a GIC ladder with different terms of maturity e.g. instead of one lumpsum investment of $100,000 you could divide it into 5 investments of $20,000 with different interest rates.
Steps To Start Building a GIC Ladder
Schedule your periodic payments or expenses like quarterly income taxes. You can use a calendar to do this easily to make sure the GIC ladder meets your needs.
Document all your other sources of reliable income such as dividends, employer pensions, annuities and other payments like Old Age Security and CPP. If you're a business, you could also go through this exercise to see when you may need cash available whilst getting a return on your funds.
Determine the timing of these obligations with the different GIC terms available to you to make cash available just before the obligation is due. A GIC ladder can be constructed using different terms from 30-270 days all the way to 5-10 years. It all depends on your needs how you structure the GIC ladder.
Buy Your GICs Today
Complete the form and we'll get back to you right away to answer your questions and walk you through to complete the process. We'll send you a secure email to setup a profile to buy GICs securely online. Alternatively, call us at (416)966-0606.
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CDIC and Assuris deposits are insured up to $100,000. DICO deposits insured up to $250,000. Rates are subject to change without notice. Certain minimums may apply. Call for details. E&OE.
Compare GIC Rates to Build the Best GIC Ladder
When you compare GIC interest rates with Blue Alpha Wealth you're able to optimize the best rates whilst taking into account your deposit insurance needs, you'll build the best GIC ladder.
Blue Alpha Wealth provides you with portfolio construction tools, real-time GIC rates board and an 'upcoming maturity' report so you don't have to guess.
We provide you the automated portfolio construction tools so you don't have to guess to when building a GIC ladder. We provide the best GIC rates and automated maturity reports.
Current GIC Rates
Today's GIC Rates
|1 Year||2 Year||3 Year||4 Year||5 Year|
GIC Laddering Example
GIC Years @ interest rate
2Year GIC @ 2.30%
3Year GIC @ 2.60%
4Year GIC @ 2.85%
5Year GIC @ 3.10%
Now, say after the first year, your GIC matures with income of $420. Add that to the $20,000 and you'll have $20,420 cash available to pay obligations or you could decide that you want to reinvest into another GIC. Let's assume after that year current GIC rates for 4 year maturity are at 3.2%.
If you invest that $20,420 into a 4-Year GIC @ 3.2% your GIC earned income after 4 years would be $2,613.76 which would give you a balance of $23,033.76. So you took advantage of a rise in interest rates as the 4 year GIC after the first year of your GIC ladder is 0.10 higher than the 5 Year GIC.
Let's Get Started! Register An Account To Find the Best GIC Rates In Canada and Build A GIC Ladder!
Complete the contact form below. You are not obligated to purchase GICs right away. This is just to setup your profile so when you're ready you can buy and view your GIC portfolio all in one place. This is a one-time setup. We'll send you a secure email to begin the process securely online and complete the setup. We are available to walk you through the 3-5 minute setup. Alternatively, you can call us at (416)966-0606.
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