If you're looking for a secure long-term investment that will generate interest income, take a look at fixed income investments. We can help you choose from a wide range of options to build a well-balanced investment plan and, if held to maturity, a guaranteed return. Canadian investors in the know understand that fixed income investments are an integral part of every well-balanced portfolio. They provide safety of principal, regular interest income, and the potential to generate capital gains whenever interest rates move lower. Fixed income investments also help to reduce the overall risk of your investment portfolio. Depending on the issuer, they can provide a guaranteed fixed return when held to maturity and are a source of stable cash flow. If you are an active investor who currently owns stocks or equity mutual funds, fixed income investments can add stability to the value of your portfolio because of the potential return they provide. There is a wide variety of fixed income investments including Government of Canada and Provincial Bonds, Federal Crown Corporation Bonds, corporate bonds, stripped bonds ("strips") and mortgage-backed securities. All are fully marketable and can be sold at market value at any time, should you need access to your funds. Fixed income investments can be purchased from your local TD Canada Trust Branch, through TD Waterhouse, or from TD Evergreen Investment Services. Term Deposits and Guaranteed Investment Certificates (GICs) are another form of fixed term investment. They offer a specific rate for a pre-determined period of time. Government-Issued Fixed Income InvestmentsGovernment-Issued Fixed Income Investments are fully guaranteed by the issuer for both principal and interest--no matter how much you invest. They are essentially risk-free if held to maturity and also provide the flexibility of being marketable, so that you can sell your investment before maturity if you need to. You have a wide choice of investment terms, ranging from one year to 30 years. Each of Canada's ten provinces issues their own bonds. While provincial bonds carry a greater credit risk than Government of Canada and Federal Crown Corporation Bonds, they represent some of the safest investments available. Provincial bonds also provide the flexibility of being marketable securities, which can be sold prior to maturity at prevailing market prices. Many government bonds can be purchased in either U.S. or Canadian denominations, and are considered Canadian content in your RSP or RRIF. - The yields on these issues are typically expressed as a spread over Government of Canada benchmark bond yields.
More about Government of Canada Bonds More about Federal Crown Corporation Bonds More about Provincial Bonds More about Term Deposits and Guaranteed Investment Certificates Stripped Bonds ("Strips")Stripped Bonds are ideally suited for RSPs, RESPs and saving for other long-term goals because they eliminate reinvestment risk over the term of your investment. Strips are created when the interest payment coupons are separated from the principal portion of a bond. Both are then sold as individual investments. They are always sold at a discount and mature at face value; the difference is your interest income. The longer the term to maturity, the deeper the discount. Like all bonds, you know exactly how much your investment will be worth at maturity and how much income you will earn. But with strips, you also reap the benefits of true interest compounding, so a relatively small investment goes a long way. More About Stripped Bonds Mortgage-Backed SecuritiesMortgage-Backed Securities are fixed-rate investments that are ideal for investors who want a very safe investment that provides monthly income. They represent an ownership interest in a pool of many mortgages. The monthly payments they provide are a share of the interest and principal payments associated with these mortgages. Mortgage-backed securities have terms from 1 to 10 years and are fully guaranteed by the Canadian Mortgage and Housing Corporation (CMHC). More About Mortgage-Backed Securities ("MBS")
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TD Automated Investing can be a good option for investors who: Are interested in a convenient way to invest online. Have a personal financial goal in mind, like saving for a major purchase or retirement. Would like a robo-advisor to automatically monitor and rebalance their portfolio.
What does fixed income amount mean? ›
an income, for example from a pension, that does not change over a period of time: Many senior citizens live on fixed incomes. investments that provide an income that does not change over a period of time: We can advise you on how to invest in fixed income (bonds and gilts).
Is it smart to invest with TD? ›
Conservative investors with a long-time horizon for their investment goals should find TD bank stock a good investment. Those looking for a stock that provides some liquidity for their portfolio would be pleased with TD's regular and high dividend yield.
Are fixed income investments good right now? ›
In current market circ*mstances, with higher bond yields, fixed income investments have become an attractive asset class again from a risk-return perspective. Apart from the attractive yield, bonds also offer resilience for adverse market developments in risk assets like equities.
Is automated investing good for beginners? ›
Automated investment can be an accessible option for beginners or those who prefer a more hands-off approach. But while it's convenient, it might not satisfy every investor, especially those who want more control over their portfolios or have complex financial situations.
Is it better to invest with TD or RBC? ›
Ultimately, both are excellent choices with long-term growth ahead. If you're looking for international exposure, Royal Bank stock may be a great choice for stable income. If you want more growth, then TD stock may be better. But it's always up to your goals and investment strategy.
What is the best fixed income investment? ›
Best fixed-income investment vehicles
- Bond funds. ...
- Municipal bonds. ...
- High-yield bonds. ...
- Money market fund. ...
- Preferred stock. ...
- Corporate bonds. ...
- Certificates of deposit. ...
- Treasury securities.
Fixed-income securities typically provide lower returns than stocks and other types of investments, making it difficult to grow wealth over time. Additionally, fixed-income investments are subject to interest rate risk.
Is fixed income just debt? ›
Fixed-income securities are debt instruments that pay a fixed rate of interest. These can include bonds issued by governments or corporations, CDs, money market funds, and commercial paper.
Is TD Bank financially stable? ›
Is my money safe with TD? TD is dedicated to stability and security, with a longstanding focus on strong risk management and controls and a diverse portfolio mix including total deposits of $361 billion and a loan-to-deposit ratio of 48% as of 12/31/22.
Toronto-Dominion Bank's stock price fell 5.8 per cent on Friday after troubling revelations about a U.S.-led probe into alleged laundering of illicit drug proceeds through its branches raised new concerns about the eventual financial toll of the bank's regulatory problems.
Why is TD stock tanking? ›
The U.S. Department of Justice (DoJ) found several TD branches aiding a U.S. money-laundering ring in 2022. TD's stock experienced some volatility when all of this came to light. Things started getting extremely ugly when the Wall Street Journal reported that the DoJ's investigation related to alleged fentanyl dealing.
What is the safest fixed income investment? ›
Treasuries are generally considered"risk-free" since the federal government guarantees them and has never (yet) defaulted. These government bonds are often best for investors seeking a safe haven for their money, particularly during volatile market periods.
Can fixed income investments lose money? ›
Just because fixed income funds usually are less risky options doesn't mean there is no risk involved. As with stocks, your fixed income investment could be affected by external factors such as market conditions, inflation, or interest rates.
Does fixed income do well in recession? ›
Interest rates tend to begin to decline three months ahead of recessions and reach a cycle low about five months into recessions. During economic downturns, fixed income has been shown to provide diversification benefits and reduce the volatility of portfolios that include risk assets such as equities.
Is TD Direct investing good for beginners? ›
If you're looking to get started with self-directed investing, we can help. At TD Direct Investing, we understand no one starts off as an expert. That's why we have a range of trading platforms, tools, and educational resources to meet you at this stage of your investing journey.
How much does TD Direct Investing pay? ›
TD Direct Investing Salary FAQs
How much does TD Direct Investing pay? The average TD Direct Investing salary ranges from approximately $41,970 per year (estimate) for a Wealth Information Specialist to $141,342 per year (estimate) for a Senior Manager.
What is the downside to TD Ameritrade? ›
TD Ameritrade offers free stock and ETF trading, while forex, bond and options fees are also low. On the other hand, it charges high fees for non-free funds and futures. We compared TD Ameritrade's fees with two similar brokers we selected, E*TRADE and Charles Schwab.
Is TD stock a good long term investment? ›
A better long-term investment than GICs
TD stock's dividend is safe. Its trailing 12-month payout ratio is about 56% of its net income, while its payout ratio is estimated to be roughly 52% of adjusted earnings this year. Generally speaking, stocks are riskier than GICs, but TD Bank is a quality business to own.
