Carte-Blog

Why today’s segregated funds are worth another look

25
Nov

Why today’s segregated funds are worth another look

You have insurance on your house and your car, doesn’t it also make sense to insure your investments? What if you were approaching retirement and there was another devastating dip in the stock market, wiping out half your savings, what would you do?

Segregated funds, offered only by life insurance companies, are guaranteed to protect 75% to 100% of the money you invest—even if the underlying investment loses its value. For conservative investors, segregated funds offer peace of mind.

Historically, the stock market has had many dramatic downturns. These funds combine the growth potential of investment funds with the security of insurance protection. Segregated funds guarantee either 75% or 100% of your initial investment (client choice) upon maturity of the investment contract, which is usually 10 years from the start. So, if you are within 10 to 15 years of retirement, a portion of your investments should be in segregated funds. Your Financial Advisor can help you understand the different features, which can vary from company to company.

Your money will be invested into an underlying asset just like a mutual fund.

Another feature is the guaranteed death benefit payable to your beneficiary. This means that if you were to pass away in a down market with your investment’s current value lower than your original investment, the insurance company will pay your beneficiaries the lost value. The guarantee is usually 100% of your original investment, guaranteed on the day of your death.

Naming a beneficiary on a segregated fund allows for the distribution of the funds privately, which means that funds can be transferred to a beneficiary outside of the Will and is not included in the calculation of probate fees.

Business owners can also use segregated funds to protect their investments from creditors. This is especially valuable if they face the prospect of having assets seized from a lawsuit or creditors.

One objection has always been that seg funds had high fees or Management Expense Ratio’s (MERs). However, these fees have come down dramatically over the last few years. Today, you can purchase a segregated fund at fees of less than 1%.

If you are considering this type of investment, you don’t need to commit your entire portfolio. You can start small, perhaps a quarter of your savings, and once you see it works as well as mutual funds, you could do more.

Contact your Financial Advisor to learn which funds offer the best features and fee structure for your needs.

1,053 thoughts on “Why today’s segregated funds are worth another look”

  41. dublaj says:

    Hi there to all, how is everything, I think every one is getting more from this web site, and your views are fastidious designed for new visitors. Doralynne Hebert Ger

    Reply
  59. 720p says:

    Good day! I simply would like to give a huge thumbs up for the nice information you have right here on this post. I shall be coming again to your weblog for extra soon. Ailis Bond Venice

    Reply
  60. diziler says:

    Hi there! This post could not be written any better! Reading this post reminds me of my previous room mate! He always kept talking about this. I will forward this post to him. Pretty sure he will have a good read. Thank you for sharing! Franky Verge Brita

    Reply
  63. 720p says:

    Just the post I was looking for. I was just thinking I would love to start playing the piano and even considered looking at one. Then I told myself I was too old to learn. I read your article and it has given me a new desire to learn to play the piano. Thanks for the encouragement Murielle Gottfried Vasiliki

    Reply
  68. altyazili says:

    Hello there, I think your website may be having browser compatibility problems. Whenever I take a look at your blog in Safari, it looks fine however, when opening in IE, it has some overlapping issues. I just wanted to provide you with a quick heads up! Other than that, excellent website! Arleyne Kleon Crooks

    Reply
  72. hindi movie says:

    Heya i am for the first time here. I came across this board and I find It truly useful & it helped me out a lot. I hope to give something back and aid others like you helped me. Pamella Krispin Theron

    Reply
  74. torrent says:

    When I initially left a comment I appear to have clicked the -Notify me when new comments are added- checkbox and from now on every time a comment is added I receive four emails with the exact same comment. There has to be an easy method you can remove me from that service? Thank you! Mareah Shell Chita

    Reply
  75. indirmeden says:

    Having read this I thought it was extremely enlightening. I appreciate you spending some time and energy to put this information together. I once again find myself personally spending way too much time both reading and posting comments. But so what, it was still worthwhile! Olivie Fair Joerg

    Reply
  76. 720p says:

    I want to point out my admiration for your generosity supporting men and women who must have help with this niche. Your personal dedication to passing the message up and down was wonderfully good and has specifically enabled folks just like me to get to their objectives. Your entire warm and helpful facts denotes so much to me and somewhat more to my mates. Regards; from each one of us. Suzy Natal Arianne

    Reply
  77. torrent says:

    wonderful issues altogether, you simply won a new reader. What may you suggest in regards to your put up that you simply made a few days in the past? Any certain? Rosamund Brian Zaslow

    Reply
  80. turkce says:

    Howdy! I just want to give you a big thumbs up for the excellent info you have right here on this post. I am coming back to your web site for more soon. Nertie Ivan Baryram

    Reply
  133. Web design agencies sydney says:

    Does your blog have a contact page? I’m having trouble locating it but, I’d like to send you an e-mail. I’ve got some creative ideas for your blog you might be interested in hearing. Either way, great blog and I look forward to seeing it develop over time.

    Reply
  137. Turkish tea cups with handle says:

    Does your blog have a contact page? I’m having trouble locating it but, I’d like to send you an email. I’ve got some suggestions for your blog you might be interested in hearing. Either way, great site and I look forward to seeing it grow over time.

    Reply
  212. Modesta says:

    Do you presently have moles or undesirable skin tags? Have you
    yearned to get rid of those annoying acnes on your skin? The Skincell Pro skin tag eliminator is a
    reliable lotion from all natural active ingredients designed to securely and rapidly eliminate skin tags, moles, and also tarnished skin.
    It’s formulated to remove skin moles and tags in just eight hours level.

    This effective, quick-acting formula job conveniently as well as
    swiftly, to help you do away with those unwanted moles without
    the help of medical professionals or surgery. https://freebookmarkstore.win/story.php?title=skincell-pro-shark-tank-2

    Reply