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.

107 thoughts on “Why today’s segregated funds are worth another look”

  3. 720p says:

    Helpful info. Fortunate me I found your web site by chance, and I am stunned why this accident did not happened in advance! I bookmarked it. Maria Shea Erasmus

    Reply
  43. altyazili says:

    You completed certain fine points there. I did a search on the subject matter and found a good number of people will go along with with your blog. Poppy Llywellyn Craggie

    Reply
  55. dublaj says:

    Normally I do not read post on blogs, but I wish to say that this write-up very forced me to try and do so! Your writing style has been surprised me. Thanks, very nice post. Sileas Claudianus Shanda

    Reply
  56. anime says:

    Having read this I believed it was very informative. I appreciate you spending some time and energy to put this informative article together. I once again find myself personally spending a lot of time both reading and commenting. But so what, it was still worth it! Marline Filippo Elnar

    Reply
  57. torrent says:

    After exploring a number of the blog posts on your web site, I seriously like your technique of blogging. I saved it to my bookmark site list and will be checking back in the near future. Take a look at my website as well and let me know how you feel. Ethelda Griz Buckie

    Reply
  59. watch says:

    Greetings! Very useful advice within this article! It is the little changes that produce the largest changes. Thanks a lot for sharing! Netta Jeddy Sarge

    Reply
  60. turkce says:

    Attractive section of content. I just stumbled upon your weblog and in accession capital to assert that I acquire actually enjoyed account your blog posts. Anyway I?ll be subscribing to your augment and even I achievement you access consistently rapidly. Vanna Reinhold Galitea

    Reply
  67. altyazili says:

    I was recommended this website by my cousin. I am not sure whether this post is written by him as no one else know such detailed about my difficulty. You are incredible! Thanks! Blair Val Edrock

    Reply
  68. gmail says:

    Thank you for sharing your thoughts. I really appreciate your efforts and I will be waiting for your further post thanks once again. Alaine Dionysus Walden

    Reply
  71. bedava says:

    Hiya, I am really glad I have found this info. Nowadays bloggers publish only about gossip and net stuff and this is actually frustrating. A good blog with interesting content, this is what I need. Thank you for making this website, and I will be visiting again. Do you do newsletters by email? Nancey Ryan Ula

    Reply
  76. diziler says:

    Keep up the excellent piece of work, I read few content on this web site and I believe that your web site is real interesting and has got bands of excellent info . Florence Ikey Hurlee

    Reply
  77. indirmeden says:

    Hello there! This is my 1st comment here so I just wanted to give a quick shout out and tell you I truly enjoy reading through your posts. Can you recommend any other blogs/websites/forums that deal with the same topics? Thank you so much!| Grayce Andonis Deach

    Reply
  82. turkce says:

    Hi there! I just want to offer you a huge thumbs up for your excellent info you have got here on this post. I am returning to your website for more soon. Costanza Gavin Zolly

    Reply
  85. erotik says:

    Dankjewel voor de tips. Heb van een spanjaard orginele zaad gekregen, van water meloen heb het al gezaaid, kom nog niet op staat wel bij lekkere temperatuur ben in Spanje aan het overwinteren, heb nu ook wat zaadjes in een potje water gezet, dus effe af wachten, als iemand ervaring mee heeft hoor ik dat graag, gr simon Kathie Eb Devonne

    Reply
  94. CBD oil for pain says:

    I’ve been browsing on-line more than three hours nowadays, but I never discovered any fascinating
    article like yours. It is pretty price sufficient for me.
    Personally, if all site owners and bloggers made just right content material as
    you did, the net might be much more useful than ever before.

    Reply
  97. cbd gummies says:

    Thanks for your personal marvelous posting! I certainly enjoyed reading it,
    you happen to be a great author. I will make sure to bookmark your blog and
    definitely will come back someday. I want to encourage
    continue your great writing, have a nice morning!

    Reply
  100. where to buy CBD says:

    My programmer is trying to convince me to move to .net from PHP.

    I have always disliked the idea because of the
    costs. But he’s tryiong none the less. I’ve
    been using Movable-type on various websites for about a year
    and am concerned about switching to another platform.
    I have heard great things about blogengine.net. Is there a way I can transfer all my wordpress posts into it?
    Any help would be really appreciated!

    Reply
  103. cannabidiol gummies says:

    Just want to say your article is as astonishing. The clarity in your post is simply excellent and i could assume
    you’re an expert on this subject. Fine with your permission let me to grab your RSS feed to keep up to date with forthcoming post.

    Thanks a million and please keep up the enjoyable work.

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *