Guaranteed Investment Contract (gic)
Definition of "Guaranteed investment contract (gic)"
Institutional investment sold by life insurance companies that guarantees principal and offers withdrawal flexibility. This conservative investment, which can be used with a corporate qualified plan, became one of the most popular choices in such salary reduction plans as the 401 (k) plan. Many of these plans offered employees three choices for depositing their pre-tax retirement dollars: a stock fund, a bond fund, and a GIC. By 1987, about 40% of employees had elected GIC investments.
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