Segregated Funds – 4 things you need to know

Investment returns are important, but so is financial security. Whether you’re new to investing or looking to diversify your portfolio, segregated funds can help you reach your savings goals with guarantees on your principal investment.

Segregated funds are professionally managed investment funds that pool financial contributions from investors. They can be invested in a variety of products including Registered Retirement Savings Plans, Tax Free Savings Accounts and more.

Here are four things you need to know:

Help protect your money

By investing in segregated funds, you can weather the ups and downs of the financial market because your principal investment, and any other deposits you make, come with strong guarantees. Depending on the level of protection you choose, your principal investment has a guarantee at maturity or death of 75% or 100%.

The benefits of estate planning

Whether you’re getting ready to retire or you’re already there, you can protect your hard-earned money. Segregated funds feature benefits that make estate transfer seamless and easy for your beneficiaries. With segregated funds, your assets can be paid directly to a named beneficiary with no costly probate fees.*

Protection for business owners

If you’re an entrepreneur, you put incredible amounts of time and effort into growing your business. Fortunately, segregated funds may protect your personal savings from creditors.** When you invest in segregated funds through a non-registered or registered account and name a Preferred Beneficiary***, you can potentially secure everything you’ve worked so hard to earn for your family.

Easily accessible

Many Canadians think you need to be 65 years or older to buy segregated funds, but that’s not true. Segregated funds are sold exclusively through life insurance companies, or a licensed insurance advisor, and they’re available for all Canadian adults.

By investing in segregated funds, you can feel secure with powerful guarantees behind your money and take advantage of growth potential to add to your existing investments. You’ll get the capital protection, versatility and privacy that only segregated funds can provide.

What are you saving for? Watch this video to learn more.