CANADA INVEST.com
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Canada Investment, Insurance, and Financial Senior Advisor
Hiroko Kobayashi Moxey
The Plan with a principal guaranteee will give you apeace of mind
Private Pension Plan
The global financial crisis plus the prolonged record low interest rate and the unreliable public pension plans have created a big concern for people who are looking ahead to their retirement. It has never been more vital to make important long term investment plans for the future. If you invest in an extreme-low interest like a term deposit, it will never provide sufficient funds for your retirement. Diversified investments of growth potential through stocks and mutual funds are indispensable for long term planning and retirement.
While the baby boomers are retiring, it is of great concern that the retirees’ capital continues to grow into old age without being adversely affected by inflation. Every year the price of gasoline and food goes up as inflation rises. $1,000 today will only have a value of $456 in 20 years with the average inflation rate of 4%. It is now necessary to prepare for the future with a high growth potential investment plan.
Can you save enough with a term deposit?
It is not possible to save enough with a term deposit. A lot of people are trying to save with low interest time deposit accounts, this gives only a very low rate of interest; and the highest tax rate is applied to the savings even though the principal is guaranteed.
Stock and Mutual funds with high growth potential should be considered as a good option. However, you may be exposed to the market volatility and you could even lose your capital which happened too many during the recent financial crisis.