Guaranteed Investment Funds
Guaranteed
We use Guaranteed Investment Funds as our principal savings and investment vehicles.
These funds are guaranteed upon death (your beneficiaries will never get less than what you have put in).
Or they are guaranteed upon expiry (varies, but usually 10-15 years).
Investment Funds
We use different investment funds to help you grow your money. Usually the different funds you see in a mutual funds have their counterpart in guaranteed or segregated funds.
Why is it sometimes called segregated funds? Because these funds are separate from the usual insurance company operating funds.
Like a mutual fund, the value varies from day to day according to the funds you choose.
Are these GIC's?
No. These are not interest-rate dependent products. Unlike a GIC the gains that you get does not depend on the interest rate a company gives at the time of your investment or deposit.
The easiest way to explain it is that it is like a mutual fund but with guarantees. These guarantees are either 75% or 100% at death or 75% or 100% upon expiry.
Other Advantages of a GIF
Investing in GIFs or Segregated Funds means choosing peace of mind!
Because of built in guarantees, you can rest easy knowing that money is always protected against market downturns. Depending on the amount of guarantee you choose, you always recover 75% or 100% of the amounts invested if the market value of the funds is lower.
Possibility of avoiding probate fees
When you invest in a GIF, your designated beneficiary does not list it down as part of your estate, thus avoiding paying fees for estate settlement, including probate fees. Probate fees may vary according to provincial jurisdiction and personal situation.
Creditor Protection
A considerable advantage for small business owners and professionals who want to limit their risk of loss in case of bankruptcy or lawsuits. Any investment in a GIF is protected from seizure by your creditors. Some conditions may apply.
Resets
Resets
Other advantages include:
You can lock in your market gains in order to protect your investment funds during market fluctuations. Say, if the value of your funds are high, you can lock that in through the possibility of resets. And we help you do that reset either every year or every 3 years depending on the company. What a better way to solidify your gains!
Quick settlement at death. No waiting for estate settlement. Also means that relatives won’t be personally responsible for the deceased’s urgent financial commitments.
Quicker, easier tax returns. All tax calculations are already done on the T3 slips sent by the company, which makes income tax returns easier and faster.
Guaranteed income for life. GIFs give you access to guaranteed income for life without having to worry about losing capital.
Still Have Questions?
Don’t hesitate to reach out to us anytime
Address
We are based in Toronto, Canada and can provide our services to anyone in Ontario.
info@WorryFreeMoneyPlan.ca