Investments with Guarantees

Concerns about financial markets shouldn’t leave you with sleepless nights.  There are various investment products offered by insurance companies that can provide guarantees and help ease your concerns about market volatility.  Guaranteeing a portion of your portfolio is often enough to smooth some of the ups and downs in your investments.

We can help take some of the worry out of your investments and build a portfolio that provides guaranteed income for you during your retirement.

Secure Your Savings and Your Future Income

There are various insured investments that can provide guarantees on your investments and can be structured for your personal circumstances, whether you’re looking for guaranteed future income, a guarantee on your investments or preserving your wealth for your beneficiaries.  The following three scenarios outline these three investment objectives.

Scenario: Guaranteeing Income for Life

Do you wish you had a pension?  Or wish to supplement your existing pension income?

We can create a pension style investment portfolio (variable annuity) that can guarantee a minimum level of income for your retirement.  Before you require income or make withdrawals, variable annuities can provide guaranteed bonuses to increase your future income regardless of the performance of markets.

Reasons to consider guaranteeing your future income:

  • You worry about market volatility and what it will do to your investments
  • You would like regular pension-style income for the future

Scenario: Plan for and Protect the value of your Estate

If you have set money aside for your beneficiaries, chances are you don’t want to take a lot of risk with your investments but you would still like to see them grow.

You might consider a variable annuity for your estate if:

  • You want to fully guarantee your beneficiaries their inheritance with the potential to lock in portfolio gains (usually once every 3 years).
  • You would like your investments to pass directly to your beneficiaries without incurring probate taxes.

Scenario: Saving for the Future with Segregated Funds

If you are under 50 and looking for investment growth to save for retirement or for your family’s future you may want to consider segregated fund investments.  These investments allow you to maximize the equity in your portfolio and provide a partial (usually 75%) death benefit of your invested principal for your beneficiaries.

Why you may want to consider having segregated funds in your portfolio:

  • You are self-employed and the potential for creditor protection of segregated funds is appealing to you
  • You want to accumulate wealth while having a partial guarantee in place for your beneficiaries should you pass away
  • You like the idea of your investments bypassing your estate and probate taxes.

Other Investments with Guarantees

Guaranteed Investment Certificates (GICs)

We offer Guaranteed Investment Certificates (GICs) from various financial institutions and Guaranteed Investment Options (GIOs) from life insurance companies.  These investments are generally guaranteed up to $100,000 by CDIC (for term to maturity 5 years or less) or Assuris.  Because of our broad offering of companies that provide these products, we often have rates better than at your bank.

High Interest Savings Accounts

Many financial institutions have high interest savings accounts which provide a small amount of interest in return for a guarantee on your principal – up to $100,000 by CDIC.  While this is typically not a good place for long term savings, high interest savings accounts can be a good place to park an emergency fund or funds needed in a short period of time.

Contact us about the rates we can provide on the above products.

A note on investments with guarantees

When looking at investments with guarantees there are a few things to consider: holding periods before guarantees apply, increased management fees or annual fees, and reduced interest rates (for short term investments such as high-interest savings accounts that can be accessed at any time).  Please contact us if you would like any information on the above investments.