Quote:
Originally Posted by GGG
I don’t think GICs are a better or worse investment then they were previously. There still current inflation minus 2% or so which is what they were previously. I do agree that if you are retiring soon setting up a GIC ladder to lock in your first 5 years of spending likely de-risks your retirement.
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5% with inflation at 7% is actually worse than 0% with inflation at 2%.
Your purchasing power goes down by 2% per year, but in the high inflation scenario you are also paying taxes on the 5%