GIC Investments???????

Question

Monthly, semi-annual or annual interest payment options, or

annual compound interest option?

Which one gives better interests? and how does it work?

Answer 1

GIC's are insurance contracts.

"Guaranteed Investment Contract" (GIC). The problem with GIC is that they pay squat. You get a guarantee but if you do the math correctly and bypass the tease the first year, you are better off investing in a index fund using a Roth Ira.

S&P 500 INDEX

http://en.wikipedia.org/wiki/S&P_500

MID-CAP 400 INDEX

http://statestreetspdrs.com/precise/mark...

Dollar Cost Average

http://en.wikipedia.org/wiki/Dollar_cost...

Roth Ira

http://en.wikipedia.org/wiki/Roth_IRA