Segregated
Funds-The Benefit of Insuring Your Capital
Author:
Ivon T. Hughes
Segregated funds are like mutual funds with an insurance wrapping. The insurance
pays for the guarantees that mutual funds do not have. These benefits guarantee
up to 100% of your principal at death and maturity.
Segregated
funds, similar to mutual funds, pool your capital with the funds of many
thousands of investors. You buy units of the fund that fluctuate based on
the total value of all the securities.
Guaranteed
Value
When you leave your money invested for the term of the contract, you are
guaranteed to get back up to 100% of your original invested capital, less
any withdrawals. This is of particular value when an investor cannot afford
to lose any of the original capital invested. Your segregated fund investment
guarantees that you will get back the portion agreed in the contract. When
the contract matures, you will get back the greater of the guaranteed minimum
amount or the market value if greater.
Segregated
funds allow for peace of mind in volatile market conditions, especially for
nervous investors and senior citizens. An investor need only pay a small
percentage extra to get the security of the insured capital offered in the
segregated fund. This means less worry, as you will know assuredly that the
minimum amount of money you will receive when the contract or matures. This
is particularly good for those:
1. who intend to pass the money on to the next generation
2. where it is not needed for income or
3. who need it for an emergency during any period of market devaluation.
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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: [email protected]
Web: http://www.trustco.ca
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