It’s always good to be well informed when dealing with your finances. Knowing these basics will help, especially if you are new to investing.
What is a Financial Advisor?
You want to get help with financial advice from a Financial Advisor, but who will you turn to? Advisors can specialize in different areas including investments, tax and estate planning and insurance or one Advisor can provide all of these combined services. Advisors can be paid by salary, commission, fees or a combination of commission and fees. Advisors work at banks, insurance carriers or independent firms and must be registered with an industry regulating agency. A good way to ensure you are dealing with a reputable advisor is to check out their credentials and experience.
What is a GIC?
GIC stands for Guaranteed Investment Certificate. This investment usually offers a fixed rate over a certain period of time. The duration is usually from 30 days to five years with a minimum investment of $500.
What exactly is an Insurance Policy?
An insurance policy is a contract that is formed between you and an insurance company. By paying a set amount of money (called the premium), you are entitled to a pre-set payment (the benefit) should a particular event such as death, property damage or property loss occur.
To learn more about some Common Investment Terms, see our glossary here.
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