Income Alternatives

Global interest rates remain near record lows. Investors seeking income are being forced to consider investments alternatives beyond the safe harbour of GICs and bonds. This is particularly true for many of last year's GICs and maturing government savings bonds. With global central banks signalling that interest rates will stay low for an extended period of time, many investors seeking income will either have to tap into their principal, move into stocks with dividends, or buy riskier bonds, to generate the cashflow they need to live. I believe one of the best alternatives out there is using preferred shares, which offer significantly higher yields than most bonds, better tax treatment in non registered accounts, and generally lower risk than common stocks. Unfortunately, it is almost impossible to get these through a mutual fund, so you need to work with an advisor that has access to these investment alternatives. If you are looking for options, give me a call.