Why Segregated Funds?

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Why Segregated Funds?

Here are 3 inherent benefits that each Segregated (Seg) Fund has that makes them the ideal investment vehicle for many people.

1 - Creditor Protection
If your Seg Fund policy has a named beneficiary, assets could be out of creditors reach, even if you face litigation or bankruptcy, ensuring that they remain intact for your loved ones

2 - Principal Protection
Since they are an insurance contract, Segregated Funds guarantee that all or a portion of your principal is returned to you or your beneficiary at maturity or death...No matter how the investment performs!

3 - Estate Bypass
Probate can be costly, time-consuming and a public process. Segregated Funds enable privacy, ensuring your wealth and estate pass to your named beneficiary without unnecessary cost and delay.

Types of Seg Funds: RRSP, TFSA, RESP and Non-Registered

Many people think the fees in seg funds are high, so the look to avoid them. At one point in time that may have been true for many people who did not understand the value of Seg Funds, or the trade off for higher fees was not worth it to them. In today's modern economy, with so many carriers competing for your business, many new lower fee options have been created.

It would be good to speak with an advisor who understands and can explain fees and what you are paying for. Just because a fee is higher or lower does not mean the investment is not going to perform. There is great value in the advice you can receive from the right advisor for you.  

Seg Funds as an investment may also be better for you, but at different times in your life. One example might be when you are later into your retirement and really want to leave behind as much of your assets to loves ones as you can. What would you do with the knowledge that you could still invest in the Market and have an 100% guarantee that you would not lose more then you put into the investment on death to go to your loved ones and you could save money on probate fees? 

To more fully understand your options and benefits please speak to good financial planner versed in Seg Funds.