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The average CPP (Canada Pension Plan) payment for a 65-year-old Canadian beginning these payouts is $831.92, while the maximum payment is $1,364.60 in 2024. So, we can see that Canadians need to supplement their pension plans with other passive-income streams.
You can create a passive-income stream at a low cost by investing in Guaranteed Investment Certificates (GICs) or dividend stocks. While the Bank of Canada has lowered its interest rates by 25 basis points, several banks still offer a 5% yield on products such as GICs.
GICs allow you to deposit a certain amount with a bank or a financial institution and earn interest on the amount. In addition to regular interest payments the bank will pay you the principal amount on maturity. Similar to other fixed-income products, GICs are ideal for investors with a low-risk appetite. Moreover, a 5% yield will help you generate wealth, given…
