Savings and Investments

By saving and investing, you can protect and grow your money to reach your financial goals.

What is the difference between saving and investing though? Savings goals tend to be short term and more liquid in nature for example setting aside funds for a specific purpose like purchasing a vehicle or renovations to your home. Investment goals tend to be more long term in nature and can involve greater risk for example the goal might be to accumulate enough for a comfortable retirement.

At Drew Financial, we offer numerous investment and savings opportunities in Segregated Funds. It is never too early to begin saving. Statistics show that more Canadians are spending their hard-earned income on debt, rather saving for their future.

What are Segregated Funds?

Segregated Funds (or seg funds) are basically the insurance industry’s version of mutual funds. Like mutual funds, Segregated funds are pooled investments where the investor deposits money with a professional fund manager in return for units of the fund. However, there are a few key benefits to owning Segregated funds, that you can’t get with mutual funds.

Benefits of Investing in Segregated Funds

Guarantees

Segregated funds are technically insurance products, and therefore, must offer insurance protection in the form of guarantees. There are two types of guarantees: a guarantee at maturity and a guarantee at death. (75-100% guarantee on your principal) Mutual Funds do not offer these same guarantees.

Creditor Proof

In most cases, creditors cannot touch your investments in Segregated Funds, as they are basically a form of life insurance, and have a named beneficiary.

No Probate

Because Segregated Funds are considered a ‘Life Insurance contract’, they do not pass through probate. It is very re-assuring for investors to know that their savings will pass directly to his loved ones.

Re-sets

Resets – Investing in Segregated funds allow you to re-set your principal when you have realized a gain on your investments. For example: if you invested $5,000 and had a gain of $500, depending on the company you deal with, you can re-set your new principal at $5,500. (and your are now guaranteed not to lose that gain). Every insurance company has different rules with regards to re-sets, and it is important to know what those rules are.

It is important to understand the Pros and Cons of investing in Segregated Funds.

Are you ready to Get Started?

Feel free to contact me and, together, we’ll review your requirements and find an effective plan for you.

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