Q&A: Investment options
With a GIC coming due, reader wonders where to invest the money.
Question: I have a GIC coming due. I am 61 and have quite a lot of equity holdings. My question is: should I invest more in fixed-income? If so, where is the better choice? Short term bonds, ETFs, corporate bonds, or another GIC? – Yvette in New Brunswick Gordon Pape answers: Yes, if you have a lot of money in the stock market you should be thinking in terms of adding to your fixed-income securities, especially at your age. If your goal is to minimize risk, you might consider the iShares DEX Short Term Bond Index Fund which is a recommendation of my Mutual Funds/ETFs Update newsletter. It trades on the TSX under the symbol XSB. Ask your financial advisor if it is suitable for your needs. I would avoid locking into a GIC at this time because interest rates are likely to rise in the next year. Do you have a money question you'd like to ask Gordon Pape? Please visit this page to find out how. Then check our website every week to see if it was chosen for a response. Sorry, we cannot send personal answers. Photo ©iStockphoto.com/ Feng Yu Copyright © 2010 All Rights Reserved - Gordon Pape Enterprises Ltd.
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