Article Abstract:
The guaranteed investment contract (GIC) was popular with pension trusts during the 1980s. Life insurance companies offered two kinds of GICs: the bullet contract, with a guaranteed interest rate for a single contribution and the window contract with a guaranteed rate for contributions received within a certain period of time. Banks and mutual fund companies also offered GICs. Some insurance companies failed to match assets with contracts, and the deteriorating economic climate caused difficulties when payments came due.
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Article Abstract:
A well-crafted investment program will largely mitigate the possibility of bad investments. Such a program has five components: (1) use conservative real estate underwriting; (2) weed out poor or under-performing investments; (3) cut expenses and develop additional income sources; (4) refocus the real estate department to become active in investment recovery; staff department with professionals who have real estate knowledge; (5) anticipate and plan for future changes.
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Article Abstract:
With the plethora of mutual funds on the market selecting the right investment can be confusing and the client's needs must be investigated carefully. There are now more mutual funds available than there are listings on both the New York and American Stock exchanges. The financial planner must weigh whether the client desires safety versus payoff, long- versus short-term, in order to place the investment with the appropriate fund.
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