ABSTRACT
What Are These Tools? Guaranteed investment contracts (GICs) are a popular fixed income investment offered by insurance companies. Most investors see them in 401(k) retirement plans offered at the workplace. The contracts act much like bankers’ certificates of deposit, promising a fixed rate of return over a specified time. In employer retirement savings’ plans that offer GICs to workers, GICs on average take in more than one-third of the money in the plan.
