Goodman Brown Financial Ltd.

Segregated Funds

Knowing when to use them is the key to this versatile tool

Segregated funds are similar to mutual funds, but are offered only by insurance companies - which is what gives them some special characteristics that we find useful in certain planning situations.
For business owners, segregated funds can offer the protection of creditor-proofing for both registered (RRSP) and non-registered accounts. In most cases, money invested in segregated funds is not subject to seizure by creditors, should a business owner be the subject of a lawsuit or bankruptcy. While anyone can face those challenges, the chances are higher for business owners and may make the use of seg funds worthwhile.
Estate planning is another area where segregated funds shine. By taking advantage of direct beneficiary designation, clients can avoid costly estate fees; save time in the settlement of an estate; keep their bequests private; and, most importantly, be sure their savings pass to those they care about most - whether a family member, charity or other person or organization.
Another popular feature of seg funds is their guarantees. At maturity of the contract, or on the death of the account holder (annuitant), the value of the account is guaranteed to be at least 75% of the net deposits into the account - and in some cases can be 100% of net deposits. Using this feature as part of an investment strategy, in combination with other types of investments, can be a powerful way to reduce risk.
We have have many years of experience working with seg funds, and know how to find the best performers on a long-term, risk-adjusted basis, build portfolios for all types of client needs, and maintain the proper asset allocation through regular reviews and rebalancing.
As with all our investment offerings, we use segregated funds as part of a disciplined process in which the needs of our clients come first.
We spend a great deal of time getting to know our clients, determining what type of portfolio is best for them, designing just the right mix of equity and income investments - and making sure clients understand their investments and why they are appropriate. This collaborative process is at the heart of our client service.
Call us to discuss how seg funds might help you reach your goals.
The above is for information only and should not be taken as investment advice.