Segregated Funds - an investment option

Segregated Funds is composed of equities, bonds, or money market securities. While they share some similarities with mutual funds, segregated funds offer a distinct advantage - they provide guarantees that protect the invested amount from market downturns.

To ensure investor confidence and interest, segregated fund assets are managed independently from the company's general assets, which is why they are referred to as "segregated" funds. This means that if the company were to face financial difficulties, the segregated funds would not be affected as they are completely separate.

With segregated funds, investors can potentially benefit from market gains while still having a measure of protection against market losses. This can make them a particularly appealing option for those who are seeking a balance between risk and reward.

Segregated Funds provide protection for the amount invested, both at maturity and in the event of death. This ensures that your investment is safeguarded, and your loved ones receive the amount invested if you were to pass away.

Here are some of the salient features and benefits of segregated funds

• With Segregated Funds, you have the opportunity to benefit from investment gains each year through resets. This means that your investment gains are locked in and cannot be lost due to market downturns
• One potential advantage of Segregated Funds is that they may allow you to avoid paying probate fees upon death, as long as you have named a beneficiary
• In the event of death, Segregated Funds can provide a quick settlement, allowing your loved ones to receive their inheritance in a timely manner
• Another benefit of Segregated Funds is that they offer protection against creditors, which can be particularly useful for business owners or those with significant assets
• Filling taxes can be easier and faster with Segregated Funds, as they generate a T3 tax slip that consolidates all of your tax information
• Lastly, Segregated Funds may offer the possibility of a lifetime guaranteed income, providing you with a steady stream of income for the rest of your life

Bawa Financials serves you and provides you excellent services. You must be aware of what each form of insurance covers and how it functions in order to make the best decision. Consider the benefits before making a choice.