A Beginner's Guide to Investing in Local Companies With all of the fluctuations that can occur in stock investments, many people find themselves wishing that there was an investment alternative that allowed them to keep their money close to home while making sound investments in companies that they trust. ... Forex 101: Make Money With Currency Trading For those unfamiliar with the term, FOREX (FOReign EXchange market), refers to an international exchange market where currencies are bought and sold. The Foreign Exchange Market that we see today began in the 1970's, when free exchange rates and floating ... Intro to Investing Investing is one of the most overlooked yet important aspects of human life. Many people put off investing or simply do not put any of their money away their entire working life and when it comes time to retire, there is nothing there for them. In this ...
An Investing/Insurance Alternative
Segregated funds are also called individual variable insurance contracts (IVIC's) and they'll be offered by a many insurance companies. Like mutual funds, they are investment vehicles, but like insurance, they have guarantees and tax advantages. How are they like mutual funds? Like mutual funds, you can choose to put your segregated fund money into any number of different types of segregated fund. For example you can choose growth oriented funds or bond funds or some combination of both, which provide you with an investment vehicle that matches your goals. How are they like insurance products? But there are four insurance-related aspects of segregated funds that make them an attractive product for many people. 1. First, is the maturity guarantee. A segregated fund offers a guarantee of at least 75% after 10 years (although some segregated funds offer maturity guarantees of 100%!). 2. As well, segregated funds offer attractive death benefits, which work in a similar way to the maturity guarantee: your survivors will receive the difference between the guaranteed amount and the market value of the fund at your death. 3. Because segregated funds are insurance products, they also offer creditor protection, so that if creditors seize your assets, they cannot touch your segregated fund. 4. Lastly, segregated funds bypass probate so that you can easily transfer the money to a beneficiary upon your death without the costly fees associated with probate. Like all insurance and investment vehicles, segregated funds are not for everyone. For example, the guarantees do bring a higher cost in order to enjoy the segregated fund. However, segregated funds are growing in popularity, so many people feel that the guarantees are worth the cost. These are just highlights of segregated funds. There are many more aspects you should be aware of. But, if you're interested in a segregated fund and what one can do for your financial portfolio, contact your insurance company and see if they sell them. If they do not, you can probably find another insurance company that will be able to help you if you look around.
