At AJ Insurance Services, we provide a variety of investment and savings options. Whether you’re saving for your first home or retiement, we can help you get started. It’s never too early to begin saving!
What are Segregated Funds?
Segregated Funds are the insurance industry’s equivalent of mutual funds. Like mutual funds, Segregated Funds are pooled investments where investors deposit money with a professional fund manager in exchange for units of the fund. However, Segregated Funds offer several key benefits that mutual funds do not.
Benefits of Investing in Segregated Funds
Segregated Funds often come with a maturity guarantee (usually 75% to 100%) that protects a portion of your original investment, even if the market value of the fund decreases.
These funds typically include a death benefit guarantee, ensuring that a specified percentage (often 75% to 100%) of the original investment is paid out to beneficiaries, regardless of the fund’s market performance.
Segregated Funds may provide protection from creditors, making them an attractive option for business owners or professionals who want to safeguard their assets.
The proceeds from Segregated Funds can bypass probate and be paid directly to beneficiaries, resulting in a faster and potentially less costly transfer of wealth.
Like mutual funds, Segregated Funds offer the potential for investment growth through professional management and diversification.
Investors can switch between funds within the same family without triggering a taxable event, offering greater flexibility in managing their portfolios.
Types of Investment Accounts Available
These savings plans are available to all Canadians to reach their specific financial goals. Below is a brief description of these accounts which you get start
TAX-FREE SAVINGS ACCOUNT (tfsa)
An account that lets Canadians grow savings tax-free. Contributions aren’t tax-deductible, but withdrawals and earnings are tax-free. It’s a flexible option for any financial goal.
REGISTERED RETIREMENT SAVINGS PLAN (RRSP)
An account designed for Canadians to save for retirement. Contributions are tax-deductible, and investments grow tax-free until withdrawal, helping to build a secure future.
FIRST HOME SAVINGS ACCOUNT (FHSA)
An account that lets Canadians save for their first home with tax-deductible contributions and tax-free withdrawals, making it an effective way to build for down payment.
REGISTERED EDUCATION SAVINGS PLAN (RESP)
An account that helps Canadians save for their child’s education. Contributions grow tax-free, and the government provides grants to boost your savings.