DAN CLARK

CERTIFIED FINANCIAL PLANNER® professional

​​Why Should You Be Interested in

Guaranteed Investments Called

Segregated Funds?

Life Insurers, like other Canadian financial institutions, also offer investment vehicles to the public. An important group of investments that they offer are called Segregated Funds. You likely already own mutual funds, which are trust funds offered by banks and investment brokers. Well, segregated funds are similar to mutual funds in that they are both baskets of diversified investments, conveniently packaged for investors.

Essentially, fund-type investments are an easy and cost-effective way for anyone to invest in the growth of the economy, and the selection of various investments held within each fund effectively reduces a person's investment risk--not all your eggs are in one basket. Importantly, you also enjoy professional financial management through a qualified fund manager, the likes of which individuals could not normally afford to employ on their own.

However, all investors need to be aware that even with the diversification that mutual funds offer, investing in the financial markets remains risky. Every day on the news we are reminded about how volatile the markets are. And we all have heard stories from relatives and friends about how they have been burned by a bad investment choice. What is an investor to do?

Life insurers came to the rescue by devising better types of fund investments which protects the invested principal, and they called them segregated funds. They have many other advantages over mutual funds, including guaranteed death benefits paid quickly and directly to your survivors, outside of the will and probate process. Segregated funds can even protect your investments from future creditors. That's important for all investors, but especially for the self-employed.

There are many other inherent benefits to owning segregated funds that can reduce costs and taxes. Call me and I will be happy to discuss them with you. I advocate the ownership of segregated funds and am fully licensed and accredited to offer them to you, should you wish.

Segregated funds are normally not available at banks, investment brokers and similar financial institutions. Government regulations prohibit such institutions from providing life insurer investment products. Only an individual that holds a government issued agent's license for life insurance can offer segregated funds to the public.