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“Is Your Financial Life Jacket Onboard?”

By: Rushit Goyani, RFRA

Storms don’t announce themselves. The same goes for financial disruption. So, when life gets choppy—are you wearing your financial life jacket, or are you just hoping to swim?

The market can be like the ocean—sometimes calm, sometimes wild, and sometimes, out of nowhere, a wave hits. And when that happens, you better have your life jacket on.

In the world of investing, your life jacket isn’t made of foam or nylon—it’s made of preparation. Two to three years’ worth of financial savings, kept aside for emergencies—medical, personal, or otherwise. It’s money that’s liquid and accessible, ideally in a conservative portfolio that doesn’t nosedive during a market dip but still grows more than inflation. That’s the peace of mind you need.

Last week, we saw the market fluctuate wildly—up 8–10% one day, down 6–7% another. By the end of it, we will back to square one. But for many investors, those swings triggered fear. Portfolios dropped, emotions ran high, and panic set in.

But not for everyone.

The investors who stayed calm? They were the ones with their life jackets on. They weren’t worried because they had their emergency funds in place. They knew that regardless of what happens in the market—or what headlines pop up—they’ll still eat good food, drive their nice cars, take vacations, and live their lives. Nothing fundamentally changes for them.

Now, let’s be clear: we’re not suggesting you pull everything and stash it in GICs. That doesn’t work either. GICs barely beat inflation, if at all. They might seem “safe,” but you’re losing money in the long term because your cash isn’t working for you. It’s just sitting there. Not ideal.

This is where a good financial planner enters the picture. At ECIVDA, we work with clients to design portfolios that reflect their risk tolerance and future needs. We call to check in, support you during turbulent times, and make sure your financial “life jacket” is always zipped up and ready.

Because when the market gets rough—and it will—those with a solid foundation don’t flinch. They float.

If you don’t have this kind of setup yet, don’t worry. We’re here to help.

Click HERE to book a meeting today!!

Why GICs Are Only for Short-Term Investments—and What to Choose Instead

By: Rushit Goyani, RFRA

Guaranteed Investment Certificates (GICs) are often seen as a safe way to grow your money. They offer guaranteed returns, making them attractive to risk-averse investors. But when you consider taxes and inflation, the real return on GICs is often disappointing.

The Hidden Reality of GIC Returns

A 1-year GIC may show a 3% return on paper, but once you factor in taxes and inflation, the real value of your money remains stagnant—or worse, declines. This is because:

• Taxes eat into your interest earnings.
• Inflation reduces your purchasing power.
• Over time, your money doesn’t truly grow, but simply maintains its value at best.

If your goal is purely capital preservation for the short term (6 months to 1 year), GICs can be a viable option. However, for long-term growth, they are not the best choice.

Balanced Mutual Funds: A Better Alternative

For investors seeking a similar risk profile to GICs but with better long-term growth, balanced mutual funds are a great alternative. These funds invest in a mix of stocks and bonds, providing moderate growth while minimizing volatility.

Let’s take a look at some real balanced mutual fund performances over the last nine years:

• Low Volatility: Out of nine years of data, balanced mutual funds have had only 2 to 3 years of negative returns.
• Strong Growth: A $100 investment in 2015 would have grown to between $150 and $220 by 2024, delivering an approximate return of 50% to 120%.
• Medium to Low Risk: These funds balance safety with reasonable returns, making them a great choice for long-term investors.

 Comparing GICs and Balanced Mutual Funds

Final Thoughts

While GICs are great for preserving capital in the short term, they do not provide meaningful growth over time. If you want your money to work for you while maintaining a conservative risk profile, balanced mutual funds are a much better alternative. With historically strong returns and limited downside, they offer an excellent way to grow your wealth over time while still protecting against major market downturns.

Before making an investment decision, consider your financial goals, time horizon, and risk tolerance. But if you’re looking for growth without excessive risk, balanced mutual funds are a smarter choice than GICs.

Book an appointment to talk to us today!  CLICK HERE