4 Reasons to use Segregated Funds
Segregated funds can be an essential part of a person’s investment and financial planning. Before finding an investment path, you first should have a financial plan that understands your needs, wants, where you are at and where you like to go.
Here are four reasons you may want to use segregated funds.
1. Capital protection
On maturity or death, protection allows beneficiaries to recover 75% to 100% of the amounts invested if the market value of the funds is lower.
2. Resets
Segregated funds that are known as 75/100 or 100/100 offer the possibility of locking in gains every year in order to protect investment funds during market fluctuations.
3. Creditor Protection
This can be an advantage for small business owners and professionals who want to limit their risk of loss in case of bankruptcy or lawsuits. There are certain conditions that apply.
4. Estate Value
Unlike mutual funds, the designation of a beneficiary in your segregated fund contract provides two advantages at death. One is prompt payment to beneficiaries with now waiting for the estate to settle. Two, since the money is paid at death is not part of the estate, therefore probate feeds are excluded, and more goes to heirs.
What questions do you have?