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Kevin-Barry Henry

Why Investing in a GIA May be Better Than a GIC.

By: Kevin-Barry Henry, #1 Bestselling Author

I have recently written in this space that as a result of rising interest rates due largely to inflation, that GICs are back on the menu for many investors looking for stability and security (Are  GICs Making a Comeback?).

Did you know that GICs (Guaranteed interest certificates) have a cousin sold by insurance companies called Guaranteed Interest Annuities or GIAs? Well, they do and because they are sold by insurance companies, they offer all the features of a GIC, but they also have all the benefits of a life insurance contract, something that GICs just can’t offer.

That makes them especially great options for estate planning and business owners.

I have started to receive more inquiries about GIAs over the past few weeks. Given the market volatility, rising interest rates and struggling bond funds, people are considering GIAs for the fixed income portion of their portfolio.

Perhaps you should really consider a GIA too? They make a lot of sense.

How do GIAs differ from GICs

Because GIAs are issued by life insurance companies and not banks, they offer all the beneficial properties that guaranteed investment funds do, namely:

  • You can name beneficiaries on non-registered accounts
  • Potential creditor protection (attention business owners!)
  • GIAs bypass your estate and are not subject to probate
  • Proceeds of GIA accounts are paid directly to the named beneficiaries
  • Because there is no probate, payouts happen very quickly

5-year rates are in the low-to-mid 4% range with most carriers right now and that makes them a really attractive proposition. 1-year rates are in the low-to-mid 3% range right now. That is a great guaranteed return.

If you would like to discuss GIAs for your own portfolio, feel free to reach out to me for a FREE 15-MINUTE CALL HERE

As always, I look forward to hearing from you.

With Gratitude,

KBH.

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THIS ARTICLE IS PROVIDED AS A GENERAL SOURCE OF INFORMATION ONLY AND SHOULD NOT BE CONSIDERED TO BE PERSONAL INVESTMENT OR LEGAL ADVICE. READERS SHOULD CONSULT WITH THEIR FINANCIAL OR LEGAL ADVISOR TO ENSURE IT IS SUITABLE FOR THEIR CIRCUMSTANCES.