Comments on: Premier on Segregated Funds – Understanding Segregated Funds

By: Terry Johnston

Terry Johnston — Fri, 13 Nov 2009 10:15:37 +0000

PS there are terrific Seg funds that have lower MERs (management expense ratios) lower than 70% of the equivalent Mutual funds. So the argument that ALL Seg funds cost more and are TOO expensive is wrong.

By: Terry Johnston

Terry Johnston — Fri, 13 Nov 2009 10:11:53 +0000

There is no such thing as a ’10 year lock-in period’ and saying so gives the impression that someone would be unable to access their money. There is a 10 or 15 year maturity guarantee — meaning — regardless of how far the investments had declined after the specified time period the investor would receive the original invested amount. If the Segregated fund has increased in value the maturity guarantee is meaningless — at no time is the invest ‘Locked-in’

As far as not loosing over a 10 year period, those invested in ‘tech’ mutual funds from the late 90s, which lost in some cases 80% — have lost that money — forever! Those with Seg funds begin receiving their original investments back next spring.

The prime candidate for Seg funds are folks looking to pass on an Estate — because regardless of what the market does the 100% Death Benefit of the Seg funds bypasses the probate process completely and the money gets into the hands of the beneficiaries faster then any other way.

By: Abdullah

Abdullah — Sat, 07 Nov 2009 19:32:57 +0000

Thanks for educating the general public about segregated funds. I didn’t have the slightest idea what this was minutes ago. The 75% guarantee policy is an interesting one, and the possibility that one can even increase the guarantee percentage even higher, makes segregated fund much more appealing.