Segregated
Funds Are For Everyone
Author:
Ivon T. Hughes
Segregated fund products are pools of money invested to achieve certain financial
objectives. Segregated funds are similar to mutual funds in that they offer
an investor the ability to pool money with other investors which are invested
in stocks, bonds, indicies of your choice. However it is the guarantees of
the return of your capital make them attractive. Fund units that are issued
to you represent your portion of ownership in a segregated fund.
Segregated
fund Guarantees
Mutual funds are at risk of losing all of your investment. Segregated funds,
by law are not totally at risk for the investor. Segregated funds must return
at least 75% to 100% of the premiums paid in (less any withdrawals) upon
death or at maturity. Segregated funds put a floor under investments that
don't perform as expected. In all markets, this allows you to invest for
appreciation in value while protecting your downside.
Segregated
funds come in equities, bonds and indices and many variations and blends
of all of these products.
Estate Planning
Segregated fund insurance products are great for estate planning. Because
Segregated funds are life insurance products, holders can name a beneficiary.
Funds paid out at death, are paid without delay to the named beneficiary
as they are not subject to probate taxes.
Each fund family
offer segregated funds with their own investment objectives and you have
a world of 4 star or better segregated funds from which to choose when you
go to our list at www.trustco.ca.
Segregated
Funds: Protecting Your Capital
Segregated
funds are backed by insurance so after 10 years or at your death, regardless
of market performance you are entitled to up to 100% or the market value
if higher. If you invested $60,000 and, after 10 years the market dropped
reducing the actual value of your segregated fund to $50,000, you would receive
up to $60,000 if you redeemed the units. If the market has risen, you would
receive the higher value.
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Ivon T. Hughes, The Hughes Trustco Group Ltd.
Online Insurance Broker - Get a FREE Quote TODAY!
Tel: (514) 842-9001 Email: info@trustco.ca
Web: http://www.trustco.ca
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