Segregated funds are a great tool used to ensure promising levels of capital protection. These contracts are similar to mutual funds but because they are issued by life insurance companies they include death benefit and maturity guarantees. Thus, this benefit can provide a level of income for as long as you live, regardless of your investment's market value.
Benefits of Segregated Funds
- Guarantees on principle
- Bypass estate and probate
- Creditor protected
There are 2 types of Annuities: Payout Annuities and Accumulation Annuities. A payout annuity is the favoured approach when collecting your pension or Registered Retirement Income Fund (RRIF). An accumulation annuity provides options similar to that of a Guaranteed Investment Certificate (GIC) which offers a low-risk, fixed rate of return.
Benefits of Annuities
- Generates guaranteed payments for a certain time period or for life.
Your pension at retirement depends largely by the number of years in the workforce and survivor benefits that have been set in place. Pension options vary which is why it is best to discuss them with an Advisor.
Benefits of Pension Planning
- Proper pension planning will result in a more stable retirement.