Protect Your Investments From Market Downturns

You have a simple list of wants when it comes to your money – build and protect savings, retire with confidence and provide for loved ones – however market volatility, inflation and longevity can create uncertainty.

Segregated fund contracts offer built in features and guarantees designed to help clients achieve their goals while promoting peace of mind.

What Do Segregated Funds Protect Against?

Market volatility

People feel confident about their investments in a strong market. But when the market turns downward, emotions tend to run high. Any market drops in the years leading up to, or at the retirement stage, can have a devastating impact on a financial future. This worry has many Canadians looking for retirement vehicles that will not only position their investments for growth when markets are up, but also have the potential to protect their capital when markets drop.

Inflation

Inflation can undermine a portfolio’s purchasing power over the long term. This chart shows how $100 spent on a ‘basket of goods’ in 1986 inflates over time. After 30 years of inflation, the cost almost doubles. It’s important to build a financial plan that offers opportunity for growth.

Longevity

Better healthcare, medical breakthroughs, and safer workplaces all contribute to longer lifetimes. This means people retiring today may be looking forward to a retirement of three or more decades – almost as long as the working phase of their lives. It’s important to have a plan that is designed to help build sufficient wealth to provide income for a long retirement.

The Advantages of Segregated Funds

Maturity Guarantee

At the maturity date, which varies by contract, the contract holder is guaranteed to receive the greater of the market value or the maturity guarantee. This could be up to 100% of all premiums, depending on the contract selected and age of the Annuitant when the product is purchased, and is reduced proportionally for withdrawals.

Death Benefit Guarantee

Upon the death of the last surviving Annuitant, the beneficiaries are guaranteed to receive the greater of the market value or the Death Benefit Guarantee. This could be up to 100% of all premiums, depending on the contract selected and age of the Annuitant when the product is purchased, and is reduced proportionally for withdrawals

Guaranteed income for life

Some segregated fund contracts include features that can deliver a guaranteed stream of income. Please refer to the appropriate Information Folder and Contract for details.

Resets

Resets work to capture market appreciation by allowing clients to periodically lock in increases in the market value of their segregated fund contracts. Resets may be automatic or client-initiated, and may impact the maturity guarantee and/ or Death Benefit Guarantee.

Creditor protection

A segregated fund contract has the potential to protect a client’s assets from creditors. This feature can be ideal for professionals and small business owners looking to help protect their personal assets from professional liability.

If you are looking for growth, protection and guarantees for your money then please contact me to see if segregated funds are the right fit for your retirement planning needs.


Also published on Medium.

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