Segregated Fund
Categories: Ethics/Morals
Interested in segregated funds, eh? Hope you’re Canadian.
Segregated funds are annuity contracts, i.e. contracts between a customer and a financial institution (usually an insurance company) that eventually give the customer a stream of cash payments over time. If you want to set up a steady fixed income for yourself in retirement, an annuity might be something to look at.
Segregated funds are annuities that are deferred and variable, and come with life insurance benefits. That means the customer can decide when payouts start, and that the annuity is tied to investments: mutual funds, bonds, stocks, and money market accounts.
It sounds like it's all fun and games, but remember: there’s the accumulation phase where you’re putting money in before the payout phase starts. As you put money into a segregated fund, it's invested. When the payout phase starts, you’ll get your income, even if your account isn’t doing too hot on the market. Remember, the point of doing an annuity, which is usually through an insurance company, is for the protection of the insurance. They’ve got your back when times are tough.
Plus, segregated funds have that life insurance benefit part, which means that, if you die, your bennies will get passed to your beneficiaries in some manner. Some also offer capital appreciation, making segregated funds a one-stop-shop for retirees looking for a safe place to invest their wealth.
First maple syrup...now segregated funds. Those Canadians are onto something.
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Finance: What is a Sector Fund?5 Views
Finance allah shmoop What is a sect or fund All
right Well star wars and star trek captains are all
these barking about setting coordinates for sector for stat or
whatever they say That means urgent in the future right
We'll hear space here's sector four and it's Ah well
kind of a slice of space Ok now come back
to earth gently And as it applies to mutual funds
it's kind of the same notion that is A sector
comprises a particular discipline of investing Like think of it
like a slice of the s and p five hundred
Like one sector of the economy is banking Another is
tech Another is telecommunications And then there's oil and transport
And consumer durables in each of these areas has hundreds
of ways in which investors can invest in that particular
sector That is there are index funds that invest in
it Yeah Mutual funds hedge funds private equity funds Even
venture capital funds Each of whom has a particular discipline
or focus on lee in one sector More less so
why would you want to sector fund Well if you
believe that oil was about tohave an explosion in demand
the good kind of explosion Then you'd want to beam
or exposed to it financially at least to its upside
Then say you would technology which you feel has gotten
too expensive in the markets And its best days are
behind it It's A little like putting several of your
eggs into one particular basket because you really like that 00:01:30.519 --> [endTime] basket