Asked by
StuartV
|
Submitted July 15, 2014
What are Guaranteed Insurance Contracts (GICs) and can they be used to lend money?
The offer presented is to make deposit equal to 10% of the loan amount, which prepays interest of 7% over about 7 years. So for $1 million deposit you can get $10 million backed by a "GIC".
Leave Answer
Sign in to MoneyTips
Forgot Password
By submitting you agree to our Terms of Service
Answers | 1
July 16, 2014
My answer is simple: avoid complexity in investing. If you don't understand it, don't do it. Most financial products like GICs involve a lot of complexity that is designed to favor the issuer, along with very high fees and risk that is hard to really understand. Stick with low fee stock and bond index mutual funds and you will be much happier in the long run.
$commenter.renderDisplayableName() | 08.14.20 @ 16:08
{comment}
-
Upvote 0
Related Questions
Answered by Michael Hoffman PRO+
RFC, CLU, ChFC in Grass Valley, CA
Tony, If you think that you may ever need life insurance to help provide for our ...
Answered by Chad Freeman PRO+
Branch Manager in Bethesda, MD
Hi Joyce: First, it's very nice to be able to answer a question for someone rig...
Answered by Michael Hoffman PRO+
RFC, CLU, ChFC in Grass Valley, CA
Michael, there are many passive options for real estate investments that will rel...
