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* With inflation and interest rates continuing to put pressure on Canadians, some people may be feeling uneasy about their savings right now. Pat Giles, Vice President, Saving and Investing Journey at TD, joins me now to talk about the value of staying invested, having a long-term outlook, and having a diversified portfolio.

- And Pat, let's start by talking about where people are putting their savings right now, things like GICs and mutual funds. What are some of the key benefits and drawbacks to consider with GICs?

* Yes. GICs and mutual funds are both good options for a diversified portfolio. And especially when there's economic uncertainty, a diversified portfolio can really give a lot of comfort to Canadians. So let's talk about GICs. They've been very appealing recently, given the elevated interest rates and particularly for investors who are more risk averse or who have shorter time horizons.

- Now, GICs have guaranteed rates of return. But over the long run, those returns may not be enough to keep up with inflation. In fact, it's hard to find time periods when GICs have outperformed mutual funds over those long-term investment cycles. And so that's where, if you have those long-term goals, it's important to diversify beyond just GICs.

* OK. What about mutual funds?

* Yeah. So if you have those long-term goals like saving for retirement or a child's education, that's when it makes a lot of sense to participate in the market, and mutual funds can be a great option. Mutual funds are designed to be held over the long term. And historically, over those long-term investment cycles, they tend to outperform GICs.

- Now, of course, there's risks with mutual funds. We have to acknowledge that there's going to be some portfolio volatility. And also, the returns aren't guaranteed. So for many Canadians, the answer is actually both. It's having some fixed income, like GICs, and having some participation in the market with mutual funds. That way, your eggs aren't all in one basket.

* And as you know, it's been a turbulent last few years. People have seen their investments go up and down, maybe delaying contributions or even withdrawing from the market. Talk about why staying invested is beneficial for the long run.

* You know, this is such an important question because, you're right, we have seen Canadians withdrawing from the market or delaying their contributions. And I think what we're seeing from investors there is trying to time the market. Everyone wants to know, when's the perfect time to get into the market. And the reality is trying to time the market is nearly impossible. It's something that professional money managers can rarely do.

- What's important in investing is not timing the market. It's time spent in market. The more time spent in market, that's where you see the greater chance of meeting those long-term goals. And one way we see Canadians staying invested in the market is through pre-authorized purchase plans.

- So this is where we see a set dollar amount every week or every month as an automatic contribution where you're buying those mutual fund units. This is a great way of not just averaging out the cost of buying but also ensuring that you're staying invested in the long run.

* And lastly, many Canadians have started receiving their tax refunds. What should people consider doing with them?

* Yes. Before going out and spending it all, let me consider a couple options here. So I think we got to think about paying down high-interest debt, especially non-mortgage debt. That should definitely be an option for Canadians. Building a savings fund, an emergency savings fund, is another important one. And I really want to make sure that Canadians are taking advantage of the registered plan types we have here in Canada. So if you haven't maxed out your TFSA, that's a great way to grow your savings tax free. Opening an RRSP for retirement-- another one.

- So, look, the options that Canadians have with their tax refund are many, and this is exactly the type of conversation that we see our personal bankers at TD having with customers each and every day. So highly encourage book an appointment with a TD personal banker. You'll get to review those investment options and leave with a confidence of how to meet those long-term financial goals.

* Pat, thanks for your time.

* Thank you.

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