Friday, September 11, 2009

investors requiring secure income should look further

Yesterday, the Bank Of Canada reaffirmed its commitment to maintaining
record low interest rates well into next year. This is great news for
consumers and homeowners, but leaves investors facing the potential of
near zero interest on their secure investments. In this environment,
investors counting on stable income may find it difficult to generate
cashflow. I believe investors requiring secure income should look
further, and consider three options. First, they should look at good
quality corporate bonds. Second, the preferred shares issued by major
financial firms offer attractive yield. Finally, guaranteed
withdrawal benefit products like Income Plus give stable income, with
exposure to the equity markets. Ultimately, security concious
investors have options, but low interest rates really do complicate
things.

Do you want to discuss your alternatives?
Have you outgrown your mutual funds?

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