Segregated Funds

Investing with peace of mind

Segregated Funds allow you to invest your money and help grow your wealth but also gives you peace of mind knowing that you have protection against uncertainty.

Unlike other investment options, segregated funds give you features that aren’t found in the typical investments (ex. Mutual funds, stocks and GICS):

Guarantees on your principal – money you invest is guaranteed up to 75% or 100% upon maturity and death
Reset Options – lets you lock-in market gains that can increase the amount payable upon maturity or death
Bypass probate – death benefits paid directly to named beneficiary instead of your estate ensures privacy and helps avoid the lengthy and costly process of going through probate
Potential creditor protection – by designating a qualified beneficiary, investments may be exempt from creditors in the event of bankruptcy or litigation.

The Power of the Pen.

At the stroke of a signature, you instantaneously create an on-demand pool of money. It is the only asset that can multiply money instantaneously.

Insurance Companies are some of the most highly regulated and safest holders of wealth anywhere in the world. They are also sophisticated managers of money and can have globally diverse portfolios of assets. (Example: Overview of a Participating Account) Once an Insurance Company declares a dividend and deposits this money into your insurance account, it does not fluctuate in value, cannot be lost, and is added to the tax-free pool of money paid at death. This accumulating pool of money can be used as collateral for a loan.

The combination of safety, flexibility, and tax-sheltered growth, reveals a world of financial planning possibilities!

Enhanced Retirement Income Increase Retirement Income and Reduce Risk

Protection of Loved Ones Estate Planning and Asset Preservation

Income from a Segregated Fund

Income from a Segregated Fund

Depending upon whether the Segregated Fund is an Equity, Fixed Income or Balanced Fund, the income from a Segregated Fund will be Capital Gain, Dividend, Interest Income or some combination of the 3. In some cases you will also receive a tax free distribution of your original Capital. This latter payment is tax free.
The tax treatment will be different for each type of income produced. T3, T5 and T5008, reporting may be delivered at tax time. These tax slips are generally unavailable until after February 28^th and in some cases can be as late as the end of March.

You can arrange for a set amount of income based upon the value of your overall portfolio. If the amount of income required exceeds the dividend and interest payment amounts, then a portion of this payment may be a combination of capital gains and original capital. If you are triggering a Capital Gain and also receiving a Capital distribution, the amount of Capital Gain will be in proportion to the amount of Capital you are receiving. Capital Distributions are tax free.

Who are Segregated Funds for?

Pre-retirees looking for wealth accumulation but want to avoid potential losses with maturity and death guarantees
Individuals looking to preserve their legacy and transfer their estate in a timely, private, and cost-effective manner
Business owners looking for creditor protection planning
Anyone who wants the ability to achieve the same type of investment returns as mutual funds but with the security and protection in knowing that their money is protected against any uncertainty

Segregated Funds vs Mutual Funds

Product Features	Segregated Funds	Mutual Funds
Deposit Guarantees	Yes	No
Capital growth protection	Yes	No
Investment Flexibility and Diversification	Yes	Yes
Potential Creditor Protection	Yes	No
Estate Protection	Yes	No
Lower Fees	No – given the cost to cover guarantees	Yes
Registered account options	Yes	Yes

Investing in Segregated Funds may helps you feel more secure and confident about your financial situation. It is not a one-day initiative but rather a continuous long-term activity. Like any other investment the earlier you start investing, the more well-equipped you’ll be in the future.

If the idea of Segregated Funds seem like a viable option for your investments, perhaps now is the time to speak to a qualified Professional.

May we invite you to give us your contact information so that we may continue the conversation?

“If your ship doesn’t come in, swim out to meet it! “

Jonathon Winters