Park Your Money Now, Profit Later
If you’re the type of person who likes to save for the things you need, you may be interested in learning another way to help your savings grow.
A Guaranteed Interest Annuity (GIA) is a type of investment where you can lock your money into for a set period of time, called the ”term.” It provides an ideal way to save for special goals because it offers low-risk growth through guaranteed returns, and early access to your money if you really need it (though charges may apply). Let’s take a closer look.
Low-risk growth
An GIA is similar to a GIC in that your initial deposit will never go down in value. This is important when you need to save a certain amount by a certain date, but you don’t want to take any chances with the ups and downs of the stock market.
Guaranteed returns
When you save money in an GIA, the interest you earn is guaranteed when you maintain your deposit for the agreed term (i.e., the number of months that you keep your investment in your GIA) of your plan.
Access to your money
The money in your GIA grows – out of sight, out of mind. But it’s always there if life throws you a curveball and you need the money sooner. Always check with your Serenia Life advisor before withdrawing funds to ensure the potential cost won’t negatively impact your finances. Because there’s always the chance that charges may apply if you surrender your funds before the term is up.
How GIAs grow with you
When you’re young, your savings goals tend to be simple and achievable in the short term. As your wealth and responsibilities increase, your needs become more complex.
Here’s a look at how your needs may evolve over time, some common goals, and how GIAs can help you achieve them.
| Life stage | Saving goals | The GIA advantage |
|---|---|---|
| Starting out You're just starting out and have no shortage of savings goals. | Furniture for your first place Travel Your first car | Safety and growth: Save for short-term goals with guaranteed returns and know the exact date that you'll reach your goal. |
| Settling in You're on your way, getting some financial traction, and maybe even starting a family. | A wedding The down payment on your first home A new car | Protection and security:GIAs keep their value. The ups and downs of the stock market will never affect how quickly your money grows. |
| Well on your way You're established, focused on helping the kids, and making big plans for the future. | Home improvements Family trips Your children's education | Higher interest: Larger deposits are rewarded with higher interest rates. You can earn Bonus Interest of up to ¾ percent on higher balances. Speak with a Serenia Life Financial advisor for more details. |
| Thinking about retirement You're looking ahead and creating a financial plan for the next chapter of your life. | Retirement savings Securing your legacy Minimizing taxes | Enhanced features: Tax and estate planning strategies are an important way to protect your loved ones. GIAs can complement the fixed-income (i.e., any investment with a fixed rate of return) portion of your financial plan and provide tax-effective ways to share your wealth. |
An easy way to get started
A GIA is one way you can put the security of annuities to work for you at any stage of life. Whether your goals are a year from now or a lifetime away, we can help you achieve them with greater confidence. Book a FREE Needs Analysis with a Serenia Life advisor today.
