Latest news with #returns
Globe and Mail
20 hours ago
- Business
- Globe and Mail
GICs are simple and safe – and a lousy way to build wealth
This may be a naive question, but if I have $7,000 in cash to contribute to my tax-free savings account, why would I invest it in a dividend exchange-traded fund rather than a guaranteed investment certificate yielding 4 per cent to 4.5 per cent? GICs have their place in a well-balanced portfolio. Because their principal value doesn't fluctuate and their returns are guaranteed, they provide stability and peace of mind during periods of market volatility. That's why, for the fixed-income portion of one's portfolio, GICs are a good solution. However, that stability comes at a cost – several costs, actually. First, GICs don't offer any growth potential. If you invest in a five-year GIC that yields 4 per cent (a rate you'd be hard-pressed to find right now, by the way), you'll make 4 per cent annually – no more, no less. You'll feel like a genius if the stock market treads water or falls over that period, but if the market rises substantially, that GIC won't look nearly so appealing. History has clearly favoured stocks over GICs. Over the past decade, the S&P/TSX Composite Index has posted an annualized total return of about 9 per cent, including dividends. No GIC can keep up with that. True, the stock market had plenty of ups and downs over that period, but volatility is the price investors pay for the superior returns that stocks deliver. Your dividend and DRIP questions answered The financial – and emotional – benefits of dividend ETFs A second drawback is that GICs lock up your money for a fixed period. If you need the cash to buy a new car or replace your furnace, you won't be able to access your funds (exceptions are sometimes made in unusual circumstances, depending on the financial institution). For that reason, you should only purchase a GIC if you're certain you won't need the funds before the maturity date. A third downside of GICs is that the interest is taxed at your full marginal rate. This isn't a factor in a TFSA, registered retirement savings plan or other registered account in which investment earnings are not subject to tax. But in a non-registered account, the tax hit on interest tops out at more than 50 per cent in most provinces for the highest income bracket. On an after-tax basis, GICs may not even keep up with inflation. Dividend stocks and dividend ETFs don't have the same drawbacks. In addition to providing the potential for capital appreciation, dividend stocks and ETFs also typically increase their income over time. Many companies – such as banks, utilities and power producers – have been raising their dividends for years, driven by their growing earnings, out of which dividends are paid. The yield of a GIC, on the other hand, is fixed. Stocks and ETFs are also more liquid than GICs. If you need the money for an unexpected expense, you can always sell a portion of your holdings. Finally, dividend stocks and ETFs also win in the tax department. Thanks to the dividend tax credit, the income from dividends is generally taxed at much lower rates than interest from a GIC. In Ontario, for example, someone with $100,000 of income would pay combined federal and provincial tax of 31.48 per cent on interest but just 8.92 per cent on eligible dividends. In the lowest income brackets, the tax rate on dividends is actually negative in many provinces. According to an Ontario resident with taxable income of $52,886 or less would have an effective tax rate on eligible dividends of negative 7.55 per cent for 2025. Because the dividend tax credit is a non-refundable credit, the government won't send you a cheque for the negative amount, but you can use the credit to offset your other taxes owing. Let me be clear: I am not trying to steer you away from GICs. I own them myself. They are especially useful if you are saving for a large future expense, such as a home purchase or a child's postsecondary education, and don't want to put your principal at risk. Many investors also use GICs for the fixed-income portion of a balanced portfolio. Building a GIC 'ladder' – with maturities ranging from one to five years – can be a useful way to diversify your GIC holdings and control your interest rate risk. When the one-year GIC matures, you would roll the proceeds into a new five-year GIC, and so on. But for long-term growth of both capital and income, stocks and ETFs are the clear winner. So don't let your desire for safety prevent you from enjoying the historically higher returns that stocks offer. E-mail your questions to jheinzl@ I'm not able to respond personally to e-mails but I choose certain questions to answer in my column.
Yahoo
2 days ago
- Business
- Yahoo
Returns 2.0: Tech-Enabled Reverse Logistics Powered by Two Boxes and Barrett Distribution Centers
FRANKLIN, Mass., June 19, 2025 /PRNewswire/ -- Barrett Distribution Centers has partnered with Two Boxes, a reverse logistics technology platform, to deliver an intelligent, more flexible returns solution for modern e-commerce brands. "Barrett's deep e-commerce roots and innovation-first mindset make them an ideal partner," said Jack Hutchinson, Head of Growth at Two Boxes. "Their eCommerce Accelerator highlights their commitment to supporting high-growth brands. We're excited to see where this partnership goes—this is just the beginning." As client expectations increase and return processes become more complex, Barrett identified the need for a more streamlined process to manage inspections, re-kitting and faster resale readiness. Two Boxes was selected for its modern user experience, seamless integration with platforms like Shopify, Loop Returns and intuitive design for warehouse operators. "Two Boxes' SOP-driven approach allows us to empower more team members with real-time, step-by-step direction," said Doug Varga, VP of Information Technology at Barrett. "It's accurate, scalable and easy to use. When we find purpose-built solutions like this, they help us deliver faster results for clients and keep our teams focused on growth." Barrett is designing future phases of this integration to support its long-term vision for fully optimized returns operations. Contact Barrett for a complimentary supply chain consultation to learn how tech-enabled logistics can simplify returns and support your growth. About Two Boxes Two Boxes is a reverse logistics technology company that empowers 3PLs and direct-to-consumer (D2C) brands to transform returns from a costly burden into a strategic advantage. Launched in 2022 and co-founded by CEO Kyle Bertin and CPO Evan Stalter, Two Boxes builds intelligent inspection workflows, digitized SOPs and real-time analytics to make return processing faster, more accurate and highly visible. About Barrett Distribution Centers Since 1941, Barrett has provided customized third-party logistics (3PL), direct-to-consumer (DTC) eCommerce fulfillment, omnichannel distribution, managed transportation solutions and retail compliance for clients across all industries, with a focus on apparel & footwear, health & beauty, consumer packaged goods (CPG) and education. Barrett continues to be a leading 3rd party logistics provider in North America, known for superior execution, customer engagement and direct access to senior leadership decision makers. As a member of Inc's fastest growing companies list 15+ times, Barrett is big enough to do the job and still small enough to deeply care about your business. View original content to download multimedia: SOURCE Barrett Distribution Centers Inc. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Politics
- Yahoo
UK will look into more ‘transactional' approach to granting visas, says Starmer
The UK will look into penalising countries that refuse to take back people who are refused asylum by making visa applications for their nationals harder, Keir Starmer has said at the G7 summit in Canada. Asked during a media Q&A about ways to reduce the number of people arriving irregularly, the prime minister said it would have a more 'transactional' approach to granting visas for countries depending on their cooperation with returns. This would also be the case, he said, for countries that did not cooperate on efforts to prevent their nationals heading towards Europe and potentially the UK to claim asylum. Describing a G7 session on migration at the summit in Kananaskis, Alberta, on Monday, Starmer said: 'I made clear that we are looking at issues like a smarter use of our visas, looking at whether we should tie our visas to the work that the countries we're dealing with are doing on preventive measures and on return agreements.' The UK currently has returns deals with 11 nations including Albania, India, Pakistan, Vietnam, Iraq, Nigeria and Bangladesh, meaning people refused asylum can be swiftly sent back. This process is seen as a notable disincentive, with the number of Albanian nationals seeking asylum in the UK having dropped sharply. 'We've done a number of bilateral returns agreements,' Starmer said. 'So the question is, again, whether it's possible to go a bit beyond that. We are including looking at whether we can't be a bit smarter with the use of our visas in return in relation to countries that don't have a returns agreement with us.' This would be, he added, more 'transactional' in approach. More widely, Starmer said he had spoken with France's president, Emmanuel Macron, the Italian prime minister, Giorgia Meloni, and Friedrich Merz, the German chancellor, about asylum and small boats. He said: 'I think we need to strengthen our existing tools, but then go further and see what else we can do. And that is a piece of work we're looking at with the French in particular.' At the joint session on migration, Starmer said, he also put out proposals on 'counter-terrorism, powers and sanctions'. He added: 'I obviously raised it specifically, and indeed in detail, with President Macron, and in terms of the specific actions that I want us to take together, as I did with Giorgia Meloni, slightly more upstream with her, which is where she's shown some success in reducing her own numbers, and with Friedrich Merz as well, because some of the boats are transiting through Germany.'
Zawya
4 days ago
- Business
- Zawya
SICO's Employee Saving Scheme delivers up to 12.6% annualized returns
SICO BSC (c), a leading regional asset manager, broker, market maker, and investment bank with physical presence in Bahrain, Saudi Arabia, and the UAE, marked today the second year since the initiation of its Employee Saving Scheme (ESS), which launched in June 2023. Since its launch, the scheme has delivered consistently strong returns across all risk profiles, validating SICO's disciplined investment strategy and global diversification approach. As of May 28, 2025, the four ESS portfolios (Cash, Conservative, Moderate, and Growth) have each delivered solid cumulative and annualized returns while maintaining low volatility. The Cash portfolio has returned 10.72% since inception, yielding an annual return of 5.29%. The Conservative portfolio followed with a cumulative return of 13.52% or 6.62% annualized. The Moderate portfolio achieved a 20.06% cumulative return, or 9.68% annualized, while the Growth portfolio led with a cumulative return of 26.53%, equivalent to an impressive 12.63% annualized. Despite a volatile market environment, all portfolios maintained a standard deviation below 1%, underscoring the effectiveness of SICO's risk-managed asset allocation and the benefits of international diversification. Najla Al-Shirawi, Group CEO of SICO, said, 'This initative has enabled SICO's employees to save more effectively and achieve stable returns in the long term, reflecting our commitment to enhancing income sustainability for our employees. By combining strategic asset allocation with global exposure and careful risk management, the ESS has delivered impressive, stable results. We're proud of what we've achieved and excited to scale this solution through a dedicated fund for external investors in the first quarter of 2026.' The upcoming fund will be structured as a Bahrain-domiciled protected cell company. Each portfolio—Cash, Conservative, Moderate, and Growth—will operate as a separate, ring-fenced investment cell within the fund, ensuring clear asset segregation and investor protection while maintaining the same successful strategy used in the ESS. SICO's ESS allows staff to contribute a portion of their monthly base salary, with the firm matching the contribution up to a capped amount, subject to a vesting period. Participants select from four portfolios aligned with their risk appetite. In line with global best practices, the portfolios are primarily invested in low-cost, liquid, USD-denominated, tax-efficient passive index funds, ensuring broad diversification, cost efficiency, and consistent global market exposure. The scheme is managed by SICO's Global Markets team and was developed in collaboration with Aon, a global leader in retirement and benefits consulting. With a proven track record of performance and stability, SICO's ESS stands out as a model for long-term saving and will soon be made available to a broader investor base. About SICO SICO is a leading regional asset manager, broker, and investment bank with USD 7.9 bn in assets under management (AUM). Today, SICO operates under a wholesale banking licence from the Central Bank of Bahrain and also oversees two wholly owned subsidiaries: an Abu Dhabi-based brokerage firm, SICO Invest, and a full-fledged capital markets services firm, SICO Capital, based in Saudi Arabia. Headquartered in the Kingdom of Bahrain with a growing regional and international presence, SICO has a well-established track record as a trusted regional bank offering a comprehensive suite of financial solutions, including asset management, brokerage, investment banking, and market making, backed by a robust and experienced research team that provides regional insight and analysis of more than 90 percent of the region's major equities. Since inception in 1995, SICO has consistently outperformed the market and developed a solid base of institutional clients. Going forward, the bank's continued growth will be guided by its commitments to strong corporate governance and developing trusting relationships with its clients. The bank will also continue to invest in its information technology capabilities and the human capital of its 150 exceptional employees. Media Contact: Ms. Nadeen Oweis Head of Corporate Communications, SICO Email: noweis@
Yahoo
5 days ago
- Business
- Yahoo
Free returns are often a deal breaker for consumers
This story was originally published on CX Dive. To receive daily news and insights, subscribe to our free daily CX Dive newsletter. E-commerce retailers with generous return policies have greater brand loyalty than those with stingier ones, according to a Rithum survey of 6,000 consumers released last month. Nearly 9 in 10 consumers expect free returns as standard, while 2 in 5 consider a retailer's return policy before making a purchase. About half of consumers — 47% — have stopped shopping at a retailer due to an unfavorable return policy. Returns are essential to e-commerce, with 3 in 5 consumers making one in the past 12 months. 'Returns are no longer a post-purchase afterthought — they're shaping buying decisions,' Rithum CEO Lou Keyes said in a prepared statement. 'For brands and retailers, the return experience has become a critical business lever, not just a logistical function.' In fact, 84% of consumers are satisfied with the return policies of their most frequented retailers. Rithum concludes that 'this high satisfaction likely reflects consumer self-selection — shoppers are avoiding anywhere with less favorable return policies.' Shoppers in the United States and Canada have higher expectations than those in other markets, with about 2 in 5 consumers saying that a 30-day return window is reasonable. Returns, however, cost retailers a lot of money. In 2024, U.S. retailers paid an estimated $890 billion for returns, accounting for 17% of total sales, according to the National Retail Federation. 'These returns create an expense iceberg for retailers and brands — where the lost sale is just the tip, and hidden costs like shipping fees, manual labor, and thinning margins erode profits beneath the surface,' according to Rithum. The fashion industry experiences more returns than any other, with over two-thirds of consumers returning clothing or footwear in the past year. More than one-third of consumers admit to buying multiple items to try on and return. That figure rises to 50% for shoppers under age 35. With deliberate overbuying so widespread, nearly 9 in 10 merchants try to avoid returns through return policy changes like restocking fees, shortened return windows and store-credit-only refunds, according to a 2024 Blue Yonder survey. However, apparel shoppers are buying more than they need because they don't trust product descriptions. Poor fit is the main reason that 3 in 5 consumers return items, according to Rithum. Another one-third of consumers have returned items because they didn't match their online description or images. Better size and fit recommendations, as well as more detailed product descriptions, could help reduce returns, according to Rithum. 'As consumers look to get more for their money, they want to trust that they'll get what they paid for,' Rithum CMO Suzin Wold said in a news release. 'When product content and return policies don't match the actual experience, it breaks that trust. Today's shoppers expect accurate, detailed listings — and anything less risks both returns and lost loyalty.' Electronics, home goods, toys, books and hobby items also have high return rates. 'These purchases tend to be more discretionary, gift or taste-driven, where returns stem less from defects and more from preferences,' according to Rithum. However, despite the high cost and complexity associated with returns, 'return policies are one of the few factors that retailers and brands can fully control,' according to Rithum. 'Returns aren't going away — but they don't have to be a revenue drain. By proactively addressing the root causes of returns and rethinking your policies with new consumer expectations in mind, you can better protect margins, boost customer satisfaction, and even stand out in a crowded market,' the survey says. Recommended Reading Foot Locker simplifies loyalty program, adds cash back
