Investing for university

[adreama]

My daughter 16 years old has 2000$ to invest. Were would the best place and plan to start with the best rates. She going to university in 2 1/2 years. She invested 2000 last year in a GIC at 3% for 2 years, but rates are not that good this year.
Thank you for your opinions

[simms]

She needs it in 3 years for a substantial cost, so risk is fairly limited. And unfortunately that means rewards are also limited...

Stack it in a money market fund/ETF for 3 years or a laddered GIC if she doesn't need all the money the first year.

[randomdef]

My daughter 16 years old has 2000$ to invest. Were would the best place and plan to start with the best rates. She going to university in 2 1/2 years. She invested 2000 last year in a GIC at 3% for 2 years, but rates are not that good this year.
Thank you for your opinions

invest it long term, take out a student loan, repay with the money saved and then keep the interest earned over that period.

[pitz]

Mrates are not that good this year.


Rates are some of the best that I've seen in my lifetime. Inflation is running at -2%, GICs are available for 3-4%. That's a 6% real return, which barely attracts any taxation.

What you don't want is to buy a 10% GIC when inflation is at 8%, because the after-tax return is, in fact, negative.

[kg_canadaka]

Rates are some of the best that I've seen in my lifetime. Inflation is running at -2%, GICs are available for 3-4%. That's a 6% real return, which barely attracts any taxation.

What you don't want is to buy a 10% GIC when inflation is at 8%, because the after-tax return is, in fact, negative.

*waits for gold bugs to chime in with their

'OMG ONE BILLION PERCENT INFLATION NOW/SOON'

predictions*

[adreama]

She has a Canadian Schoolarship Plan.