Matthew Laker

Why would you even look at a Segregated Fund?

Segregated Funds are one good tool to help in Estate planning. Especially if you have money set aside that you want to leave to a certain beneficiary. Some individuals may like the security that comes with the death benefit.

What is a Segregated Fund?

Segregated funds are offered by insurance companies and have some uniqueness and characteristics that do not apply to traditional mutual funds. They combine the growth potential of investments with insurance protection.

Many provide a guarantee to protect the principal of the money you invest, Even if the fund loses money, you will get back a portion or all of your principal investment. There are also resets along the way, the reset is a guarantee on the current value if you should die. However, you have to hold your investment for a certain length of time to benefit from the guarantee.

Here are seven uniqueness of Segregated Funds.

1. Guarantee in the event of death and upon maturity.
2. Potential to lock in Growth – This is a reset option on the growth of the investment, it becomes the guarantee upon death.
3. Investments are exempt from seizure by creditors. -This can be helpful for those with a business wanting to protect assets.
4. quick access to investments in the event of death. – There is no need to go through probate, and your beneficiaries can receive the money sooner.
5. Increased level of confidentiality. – These can be important for those who do not want people to know how much their assets are. As it is not part of the public record.
6. Avoiding probate. – Probate can eat up a percentage of the estate, that is not the case with segregated funds.
7. Assuris protection (https://assuris.ca/how-am-i-protected/assuris-protection/wealth-management/individual/guarantees-on-segregated-funds/) – In the event that the company fails, this organization provides protection for Canadian policyholders, protecting their guarantee.

Are Segregated Funds for you?

Perhaps, perhaps not. It depends on what are your goals and needs.

This is why you need to do a Financial analysis that looks at your needs, current situation, goals and what are your options. Each person needs a financial plan unique to them.

I can help you with that. Let’s start with a free 60 min meeting and walk you through our complimentary financial analysis. This will confirm where you are at and where you want to go and what your best options are and create a plan to get there.

Fill out the form now, why wait, it will cost you nothing and give you the assurance of what your next steps need to be.