Segregated Funds

Seg Funds 

Certainly! Segregated funds offer several benefits and here are suggested highlight to you customers:

Few Benefits are stated below:

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Capital Protection:

Segregated funds provide a level of protection on the invested capital, typically guaranteeing a percentage of the initial investment upon maturity or death of the policyholder, usually ranging from 75% to 100%.

Potential for Growth:

While offering capital protection, segregated funds also offer the potential for investment growth by allowing exposure to various asset classes such as stocks, bonds, and mutual funds.

Probate Avoidance:

Segregated funds allow for the designation of a beneficiary, bypassing the probate process and potentially reducing estate settlement costs and delays.

Creditor Protection:

In certain jurisdictions, segregated funds may offer protection from creditors in the event of bankruptcy, providing an added layer of security for investors.

Flexibility:

Investors can choose from a range of investment options and fund managers based on their risk tolerance and investment objectives.

Here are Cons may be associated Seg Funds:

Higher Fees:

Segregated funds often have higher fees compared to traditional mutual funds or ETFs due to the additional benefits such as capital protection and estate planning features.

Surrender Charges:

Early withdrawal or surrender of segregated funds may incur penalties, particularly if done within the initial years of the investment.

Maturity Requirements:

Some segregated funds have maturity requirements, meaning investors may need to hold the investment for a certain period to fully benefit from the capital protection and guarantees.

Market Risk:

While offering capital protection, segregated funds are still subject to market fluctuations, and there is no guarantee of investment returns, particularly if the underlying investments perform poorly.

Complexity:

The features and terms of segregated funds can be complex, requiring a thorough understanding by both the investor and the advisor.

These are illustrations and presenting these points to our customers, we can demonstrate our expertise and help you make informed decisions about whether segregated funds align with your financial goals and risk tolerance. Choices are definitely YOURS