David Gorveatte CFP CSA - Financial Planner, Investment Advisor, Insurance Advisor - Manulife Securities Investment Services Inc., Fredericton, NB, New Brunswick

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Savings accounts are the most convenient way to earn interest. The interest is generally low (less than one per cent these days) because the money can be withdrawn at whim. Interest can also be determined by whether the savings account is bundled with a chequing account. Check Current Savings Rates
Guaranteed Investment Certificates (GICs) are for investing in for a year or more - usually one to five years - and come in various forms with different available options. Check out the options offered and determine which suit your needs and situation most closely. For example, some can offer a low interest rate in the first year and more attractive returns in subsequent years. Always check if there are penalties for early withdrawal and how much those penalties are. It is important to consider the liquidity of any investment. Liquidity means how available your money will be if you want to withdraw it on short notice. Generally, the more liquidity you want, the lower the interest-rate return. Long-term rates tend to be higher, but in high-inflation and pre-recession environments, this may not hold true. Check current GIC Rates
Canada Savings Bonds typically offer more liquidity than GICs. They can be cashed in without penalty after 90 days if you do it at month end. Terms vary from issue to issue. They have been made more attractive lately because of stepped-up guarantees on rates beyond the first year. For example, three per cent could rise to 5.00 percent. Minimum purchase is usually $100 and the maximum $500,000. Check Current CSB Rates
Money Market Mutual Funds that invest in federal government treasury bills, provincial treasury bills, and short-term commercial paper issued by the most credit-worthy corporations. The return for these funds are expressed as a yield. Check Current T-Bill Rates
Bond Mutual Funds are a pool of investments that are professionally managed. They have two components: the rate of interest the bond is paying and the price you pay for the bond. If a bond is paying seven per cent and interest rates go higher than seven, the bond is less attractive and therefore worth less. The price of bond mutual funds, therefore, moves in inverse direction to interest rates. A purchaser should look at the bond's performance and work out a comfort level with the fund manager. Some managers may tend to be more risk-oriented than others in the investments they put into the basket. Check Current Bond Yields
Balanced Mutual Funds are a combination of cash, fixed income (such as bonds) and equities (such as stocks). These funds are an efficient way to spread your money across different types of investments. When stock markets are down, for example, bond markets may be up, or vice versa. Diversification by asset class is the objective with these types of funds. They will tend to produce a lesser rate of return over the longer term, than equity-based vehicles, but will tend to exhibit lower volatility.
Equity Mutual Funds are mutual funds that invest in a mixture of stocks. Equity funds are categorized by the types of stocks in which they invest. For example, by geography or industry type. Usually, these types of funds will be more volatile and generate the highest rate of return over longer investment time frames. Check Current Stock Market Conditions
Labour Sponsored Mutual Funds are equity type investment funds sponsored by labour to provide venture capital for small and medium-sized businesses. Most of these funds are provincially based, although some national labour funds exist as well. Thanks to the generous tax credits they offer investors, these funds have proven quite popular. To benefit from these tax credits, investors must typically allow their investment to remain in the fund for a minimum of eight years. It should be noted that the large tax credits are offered as a "risk premium" of sorts. These funds will tend to be towards extreme end of potential volatility.

David Gorveatte, CFP is a Financial Advisor and Certified Financial Planner CFP, serving the Fredericton, NB, New Brunswick area.

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*The information contained herein is for Canadian residents only and does not constitute an offer to sell or a solicitation in any foreign jurisdiction, or in any Canadian jurisdiction where David Gorveatte is not licensed to effect sales.
**David Gorveatte, Manulife Securities Investment Services Inc., and Screenlevel Web Solutions do not make any representation that the information in any linked site is accurate and will not accept any responsibility or liability for any inaccuracies in the information not maintained by them, such as linked sites. Any opinion or advice expressed in a linked site should not be construed as the opinion or advice of David Gorveatte and Manulife Securities Investment Services Inc.. The information in this communication is subject to change without notice.
***Calculators on this website are for illustrative purposes only and should not be relied upon as an accurate indication of your financial retirement needs. As each individual's situation is different and changes over time, the results are limited by the accuracy of the assumptions you make in providing the information used in the calculations. David Gorveatte, Manulife Securities Investment Services Inc., and Screenlevel Web Solutions do not guarantee that the calculators are reliable, accurate or complete or that they will be compatible with your computer.
****Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus carefully before investing. Mutual funds are not guaranteed, their values change frequently and past
performance may not be repeated.
*****Please note that advice given is for illustrative purposes only and may not be applicable in any particular case. Errors and omissions excluded.
******Money Market Mutual Fund Disclaimer - Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual fund securities are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer. There can be no assurances that the fund will be able to maintain its net asset value per security at a constant amount or that the full amount on your investment in the fund will be returned to you. Past performance may be repeated.
*******Labour Sponsored Investment Fund (LSIF) Disclaimer - Commissions, trailing commissions, management fees and expenses all may be associated with investments in labour-sponsored investment funds ("LSIFs"). Please read the prospectus before investing. Labour-sponsored investment funds (LSIFs) are not guaranteed their value changes frequently and past performance may not be repeated. Availability and amounts of tax credits are subject to certain conditions and limitations and are subject to repayment if shares are not held for eight years.