It's still a good time to open a self-directed investment account

GICs are not safe. The amount they earn in interest does not match the rate of inflation. Buy a GIC, keep it for a year and when you cash it it will have lost buying power. This is almost guaranteed.

My answer: accept a bit more risk, open a self-directed portfolio account and invest with care. All the big North American markets are at all time highs. A correction is likely. At the very least, a pullback from the recent highs is likely.

My answer, buy enough good, dividend-paying investments to get you by and keep the balance of your money in an investment savings account mutual fund with absolutely zero fees.

I'm tracking a demo portfolio to show a friend exactly what I mean. They can show this post to the bank at their next meeting.

Total amount of money to invest: $60,000.

• Invest $25,000 immediately. Do not try to time the market. I have the following in my demo account:
• 46 shares of Canadian Imperial Bank of Commerce (a bank)
  
• 192 shares of Emera Inc. (a utility)
• 88 shares of Enbridge Inc. (a pipeline)
• 252 units of  iShares Core Growth ETF Portfolio
• The balance, $35,000, is in TDB8150, an investment savings account mutual fund with absolutely zero fees and paying a small amount of interest that accrues daily and is paid monthly.

• This portfolio delivers 2.09% annual dividend income calculated on the original $60,000 investment.
• This dividend income amounts to $1255.96 annually.
  

Even in a severe bear market, I expect this self-directed account to retain more than 85% of its value. And in a bear market is the best time to get into the market, one can immediately invest the balance. The cash is not tied up, out of reach, in a GIC. (In reality, I'd invest half the balance and then invest the other half when I felt confident that I knew where the market was heading: rebounding or testing new lows. I'd be hoping for another drop. I like stocks that are not only on sale but ones that carry Further Reduced red tags.)

When the market rebounds out of correction territory, I'd sell a little, converting a minimum of 5% into cash which I would put in a An example would be TDB8150. I once thought of TDB8150 as a money market fund. I was wrong. TDB8150 is an investment savings account mutual fund with absolutely zero fees.

And how is my demo account doing? I'm in the black and I'm collecting dividends. If this demo was the real deal, I'd be happy.