Why Don't I Buy a GIC?

Five year GICs are paying over 4% and come with a guarantee. So why not just move your fixed income there and call it a day?

In this episode of The Free Lunch Podcast, Colin and Greg tackle a question they've been hearing more often as bond returns have dipped in recent months. They walk through why bond prices move the way they do, what 2022 taught investors, and why Greg says a GIC can be compared to a bond issued by a bank.

They also dig into the risks that never show up on your statement, and Greg's example of what can happen when a great rate comes up for renewal.

Colin's take? The better question isn't which option pays the most today. It's what job this money is supposed to do.