Guaranteed Investment Funds

If you want to participate in the growth potential of the markets, but want downside protection; you’re looking for estate planning benefits; or you’re a small business owner or a professional and want potential protection from creditors, then segregated funds may be for you. Guaranteed Investment Funds (GIF) or “Segregated” funds are suitable for investors with small, medium and large size accounts.  GIFs can give you the growth potential of investment funds with the security of insurance guarantees.

GIFs are investment products sold by life insurance companies. They invest in one or more underlying assets, such as a mutual fund.


Key features and benefits of Guaranteed Investment Funds

• Low Minimum Investment – Start with as little as $50 with pre-authorized deposits or $1,000 lump sum deposit

• Guaranteed death benefit – Depending on the contract, your beneficiaries will receive the greater market value or 75% or 100% of your contributions tax free when you die - ideal for estate planning

• Avoid probate – The above amount is not subject to probate fees if your beneficiaries are named in the contract and they get the money within days instead of months or years

• Principal guaranteed – Depending on the contract, 75% to 100% of your principal investment is guaranteed if you hold your fund for a certain length of time (at least 10 years)

• Optional reset feature – If the fund value rises, some segregated funds also let you “reset” the guaranteed amount to this higher value – but this will also reset the length of time that you must hold the fund (at least 10 years from date of reset)

• Potential creditor protection – This is a key feature for business owners in particular

• Tax-efficient – More tax-efficient than mutual funds with no built in capital gains when you purchase a GIF

• Privacy – no one has the right to find out or challenge the amount that has been passed on to the beneficiary

• Settlement Options –Option of electing to leave an annuity or structured payments instead of a lump sum to your named beneficiaries. Ideal for leaving to heirs when you don’t want to leave them a lump sum. May avoid the need for a testamentary trust

• Your investment is insured by Assuris – Assuris is the not for profit organization that protects Canadian policyholders if their life insurance company should fail. Every life insurance company authorized to sell insurance policies in Canada is required, by the federal, provincial and territorial regulators, to become a member of Assuris. Mutual funds do not have this protection – only GIF do.

• Choice of Funds and Investment Portfolios – CI, Manulife, RBC, McKenzie, Franklin Templeton, Fidelity and many other brand name companies’ investment funds are available

GIF Exchange-Traded Fund Portfolios (ETF) available – allow for index, style and broad market diversification holdings in small and mid-sized accounts.

Manulife Private Segregated Pools offer professionally managed portfolios with lower MERs for a minimum investment per pool of $150,000

Preferred pricing for families with $500,000 or more to invest, through lower MERs, along with tax-deductibility of fees for non-registered accounts

If you want to participate in the growth potential of the markets, but want downside protection; you’re looking for estate planning benefits; or you’re a small business owner or a professional and want potential protection from creditors, call me. Let’s set up a discovery meeting to find out if these funds are right for you.  tim@timweichel.ca 705-798-0062 or 416-230-2703  www.timweichel.ca  

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