Why A Segregated Fund Is Worth It

In today’s market, there aren’t a lot of guarantees about investing. What will happen if you face a market downturn just as you expect to withdraw your money? Segregated funds insure against this, offering good investment returns and the comfort of knowing your money is protected.

How They Work
Mutual funds are managed by investment firms and banks. Segregated funds are administered by insurance companies. Both involve a pool of investments, the value of which will fluctuate according to the market. Both are managed by investment professionals.

However, segregated funds offer the growth potential of a mutual fund along with the security of knowing your capital is protected from market downturns. There are slightly higher management fees, in exchange for knowing your money is protected. These fees have come done substantially in the last few years and are definitely worth a second look now.

A segregated fund policy includes both a maturity guarantee and a death benefit guarantee. These guarantees range from 75% to 100% of your principal investment (less withdrawals), no matter how much the markets underperform. Your FORTAX Financial Planner can help you compare the guarantees of different segregated funds.

You need insurance on your car, and you choose life insurance to protect your loved ones. It makes sense to also protect your investments against unexpected calamity.