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Navigate market downturns with segregated funds

When markets waver, it’s easy to lose sight of your investment goals – or why you invested in the first place. But, looking back at your reasons for investing, it’s likely that you already made some calculated choices around what is best for you and your future. It’s important not to lose sight of that fact, so you know what to do when markets go down.

Segregated funds are a safe investment choice, if you want to protect your contributions in case markets take an unexpected downturn. These funds come with unique benefits that were made to help weather times of volatility and uncertainty.

How segregated funds can put your mind at ease

Your money is protectedSegregated funds come with guarantees that other investments don’t offer. Depending on your chosen guarantee level, 75-100 per cent of the money you invest is guaranteed.* Your guarantee level is never more important than when markets are struggling.

Your family and your estate are better protected. Naming a beneficiary can help to protect the value of your estate. And, just like with life insurance, proceeds from your segregated fund policy will be paid directly to your beneficiaries – in a timely fashion, and in a way that relieves them of potential complications around accessing the funds.

Your investment is managed by professionals. Our fund managers have been through market uncertainty before. They understand markets, are equipped with sound strategies, and take an approach that is designed to outlast market volatility. In short, your segregated fund investment is built and managed to withstand volatility over the long term.

Why you should keep market fluctuations in perspective

While segregated funds can bring a degree of comfort, it’s equally important not to let emotions prevail during times of economic uncertainty. Whatever your investment plan, and whatever the market conditions, there are a few basics that always hold true:

  • Don’t lose sight of your long-term goals. If you’re saving for your retirement or your children’s post secondary education, and that date is still well ahead of you, focus on the fact that markets trend upward over the long term.
  • Never try to time the market. Trying to recoup a loss by cashing out when the markets are down, and reinvesting when they rebound, doesn’t work. Most seasoned financial professionals will recommend you “stay the course”, keeping your end goal in mind.
  • Stay informed. Anyone who started investing after 2008 has experienced a record smashing, 10-year bull market – with only moderate periods of decline. Those who sold too early, due to panic, would have missed out on some or all of those gains.
How a financial representative** can help

Having a solid financial roadmap is the best way to weather ever-changing market conditions. And designing that roadmap – and staying the course – can be a lot easier with the help of a financial representative.

By letting our financial representatives, along with our experienced portfolio managers, guide you and your investments through times of uncertainty, you can rest easier. Which, in turn, lets you stay focused on the health and safety of you and your loved ones.

*Maturity and death benefit guarantees are not available upon surrender of the segregated fund policy and are proportionally reduced by any withdrawals from or investment transfer out of the segregated fund. Subject to any applicable death and maturity guarantee, any part of the premium or other amount that is allocated to a segregated fund is invested at the risk of the policyholder and may increase or decrease in value. Segregated Funds are administered by Co-operators Life Insurance Company.

**In the province of Quebec, the authorized representatives are Financial Security Advisors who have been duly certified by the Autorité des marchés financiers.

This article is provided as a general source of information for a specific point in time and should not be considered solicitation to buy or sell any investment. Nothing contained in this article constitutes investment, legal, tax or other advice.

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