When it comes to securing your financial future, Segregated Funds offer a unique combination of investment growth and principal protection. At 705 Insurance, we understand that every individual’s financial goals and risk tolerance are different, which is why we take a personalized approach to help you navigate the complexities of Segregated Funds and make informed decisions.

What Are Segregated Funds?

Segregated Funds are a type of investment product offered by insurance companies that combine the growth potential of mutual funds with the added security of insurance guarantees. These funds provide features such as maturity guarantees (typically 75% to 100% of the original investment) and death benefit guarantees, making them an attractive option for individuals seeking both growth and security. Additionally, Segregated Funds offer creditor protection and estate planning advantages, as the proceeds can be paid directly to a named beneficiary, bypassing probate.

Benefits of Segregated Funds with 705 Insurance

• Capital Protection: Enjoy the peace of mind that comes with guaranteed protection of a portion of your investment.

• Market Growth Potential: Participate in market growth opportunities while minimizing downside risks.

• Estate Planning Advantages: Bypass probate and ensure a smooth transfer of wealth to your beneficiaries.

• Creditor Protection: Shield your investments from creditors under certain conditions.

• Expert Guidance: Our brokers help tailor Segregated Funds to your specific financial goals and risk tolerance.

Common Questions About Segregated Funds

• Who should invest in Segregated Funds? Segregated Funds are ideal for individuals seeking a balance of growth and security, especially those nearing retirement or with estate planning needs.

• How do guarantees work? Guarantees ensure that you receive at least a portion (usually 75% to 100%) of your original investment at maturity or upon death, regardless of market performance.

• What are the fees? Segregated Funds typically have higher management fees compared to mutual funds due to the additional insurance guarantees.

• Are they flexible? Yes, you can choose from a variety of funds that align with your investment goals, such as equity, fixed income, or balanced funds.

Clearing Up Misconceptions

Some people believe Segregated Funds are too expensive compared to mutual funds. While the fees are higher, the added benefits like guarantees, creditor protection, and estate planning advantages often outweigh the costs. Another misconception is that they are only for retirees, but Segregated Funds are suitable for anyone seeking investment security and growth potential. At 705 Insurance, we ensure you fully understand these products and how they align with your financial strategy.

Real-Life Examples

• For Retirees: A retiree invests in Segregated Funds to protect their principal while generating income during retirement, ensuring they can enjoy their golden years with confidence.

• For Estate Planning: An individual uses Segregated Funds to designate beneficiaries, ensuring their investments bypass probate and are passed on smoothly.

• For Business Owners: A business owner invests in Segregated Funds to shield their assets from creditors while planning for long-term growth.

The 705 Insurance Difference

At 705 Insurance, we pride ourselves on providing comprehensive financial solutions that prioritize your unique needs. Our experienced brokers take the time to understand your goals, explain your options clearly, and guide you toward a strategy that works for you. Don’t leave your financial future to chance—contact us today to learn more about Segregated Funds and secure your investments with confidence!