Question about CDs in the US and GIC’s in Canada


On July 6, 2020, from L. B. …..Newfoundland


Sixty percent of my portfolio is in  GIC’s which are now giving me just over 2% return. Where else can you hold cash and do as well in the short run?

Monday Morning Millionaire Program Answer:

A 40/60, market/cash or near cash asset allocation puts a slightly greater importance on safety than on growth potential.  It  is good for retired people and conservative investors.

Certificates of Deposit (CD’s) in the US and Guaranteed Investment Certificates (GIC’s) in Canada are similar to each other. Preservation of capital is their primary objective.

A 2% return on a security designed to preserve capital is good. It might be worth your while to shop around for better terms and returns, however.

As an interesting aside, writing in his book The Battle for Investment Survival, Gerald Loeb says that knowledgeable savers would gladly pay a fee to any bank which would guarantee the preservation of the purchasing power of our savings if they felt that there was any hope of the bank staying solvent.

From one of our experts:

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Dr. Milan Somborac

The Monday Morning Millionaire Program supports do-it-yourself (DIY) investors which I have been for over 50 years. About my team and me