Investments have become one of the most talked about and well documented topics in the last few decades. There are people who have made very wise investments and earned so much and there are those who did not reap the benefits at all and ended up losing their money. In this case, if you intend to invest in the best GIC rates, there are some factors that you definitely have to consider.
1. Is it the best use for your money?
If you have made up your mind to invest and are looking to engage in GIC rates then you need to ask yourself if that is really the best use for your money as of that point in time. May be you have other needs or important bills and debts to pay. Make sure you are financially secure and free from debt before you engage in GIC rates. Sure, it will earn you some money but is it the best move at the time.
2. What is your objective?
The objective that you have should dictator whether or not you should proceed to engage in GIC rates. Most people simply want their money to grow fast. Others had money that they did not have a use for and engaging in GIC rates was their best option. Let your objective give you direction.
3. Your age
Your age is definitely a consideration. Though people have been able to capitalize on GIC rates in the short term, it is important that you look at the future. It is generally better to make investments while young because the disposable income you have is more and you can be able to wait for longer periods for your money to mature. Older people have more responsibilities and less disposable income so age is definitely a factor to consider.
4. When do you need the money?
There are people who save and make investments with retirement as the key factor on their minds. There are those who make investments because they need their money to mature in the short term. GIC rates work better in the short term so if you need your money soon you should definitely engage.
5. Your risk tolerance
How willing are you to lose money if it means that there is a chance that you could get so much more in return? Only choose to invest if you are into taking risks. If you cannot handle it then do not engage in GIC rates.
6. Emergency funds
Do you have an emergency fund? In the worst case if the economy crashes and you end up losing your money and gaining nothing at all, are you in a position to take care of yourself and for how long?