Financial safety is all about optimizing savings, protecting your investments, and doing regular reviews to ensure your money is working for you.

What It Is

Financial safety is important to many people. It means having enough security through guarantees such as death benefits and maturity guarantees. Segregated funds, like mutual funds, are market-based investments. They are insurance contracts; therefore, they have special benefits that mutual funds do not. Contracts such as these have 75%-100% guarantees on investments (minus withdrawals) when the contract either matures or upon your untimely death. You can name beneficiaries on the contracts, as well. They bypass probate fees and Estate Taxes. Yes, they fluctuate with the markets. Nevertheless, they can offer resets to take advantage of growth within the contract.

Read more about Segregated Funds.

How It Works

To protect your money from erosion and/or loss, we often recommend Segregated Funds. They offer safety and security through death benefit guarantees, better protection over the ups and downs of the markets, and resets to protect the growth within accounts. This includes similar protection as the Canadian Deposit Insurance Corporation (CDIC), which offers eligible deposits up to $100,000 of Canadian funds within eligible banks.

Client Story

One of our clients, like many, had a number to which she wanted to retire. She called Simplified Financial, and we helped her set-up Segregated Funds within her RRSP and TFSA. She set aside money as she was able. Putting more or less away depending on her situation at the time. Meanwhile, we reviewed her savings quarterly and established a relationship. All was going well when suddenly her husband passed. She discovered that she would not receive the sum that she expected for her retirement following his death.

Unlike a bank, who transfers you from person to person, we had a rapport with this client. Owing to this, we helped her re-evaluate and restructure her accounts. We were able to work with her to formulate options that were right for her. Instead of cutting back hours when she had planned, she kept regular hours for a few extra years to save up the remaining funds she required. When she was ready to retire, we converted her RRSP into a RRIF. She ended up with more than she anticipated.

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