As we age and our thoughts turn to estate planning, Segregated Funds may present a valuable planning opportunity. As we progress through the stages of life our investment focus changes from growth to income to preservation. Usually, the expected rates of return reduce as we age, primarily because we have less time to make up for a loss and feel the need to be more conservative in our approach. Anyone who has retired shortly before or after a major market correction (or crash!) understands the impact volatility can have on their enjoyment of a comfortable retirement.
In addition, none of us want to leave an estate for our heirs which could be a fraction of what was intended or be a catalyst for family discord. Fortunately, you do not have to forego the opportunity of growth in order to preserve the capital that you wish to leave to your family. Segregated Funds not only protect your estate against market fluctuations, they also provide the comfort of knowing the inheritances you wish to leave will be received by those for whom they were intended.
What are Segregated Funds?
Segregated funds are similar to mutual funds and represent market- based, equity, bond or fixed income investments. They differ from mutual funds in that as they are offered by life insurance companies, they have special benefits that mutual funds do not. These special benefits include: Read more
Here’s an important article I wanted to share from CBC News. It addresses some of the scenarios widows and widowers could face if they continue to be reliant on CPP after the death of a spouse.
The total net value of your estate represents what you will leave to your family when you die. It may include the following:
- Your residence;
- Cottage or other recreational property;
- Investment real estate;
- Stocks, bonds, mutual funds and commodities
- Life insurance;
- Any other assets you wish to leave to your heirs.
After paying off any liabilities, taxes arising at death, last expenses etc., what is left over is what your family will use to maintain the lifestyle that you created for them.
Two easy ways to make sure debt and investment losses do not impact the estate you leave for your family Read more