The media likes to portray mutual funds as investment products of yesterday. But in reality, the industry is evolving, and a lot of changes have been made in the past few years. Management fees have come down, fund managers invest their own money in the portfolios and transparency has increased to provide consumers with more detail about costs and taxes. Radiant Private Wealth welcomes these changes. Because clients deserve to know how their financial advisors are paid, and judge if the advisors are delivering value.
For most Canadians, mutual funds is still the popular choice for investment savings. The Internet has caused a rise in the do-it-yourself movement but when it comes to investing, it’s like really like preparing our daily meals. Of course, you can grow you own food and make three meals every day. But have you ever ordered pizza, take out, or go to a restaurant and pay somebody to cook for you? Ask yourself “do I love cooking every day, am I good at cooking, and do I have time to cook?” At Radiant Private Wealth, we see value of hiring a specialist to free up time for things that matter like spending more time with family.
Segregated Funds are like mutual funds with life insurance benefits. They operate very much like mutual funds: access to different global markets, highly diversified, and professionally managed. They also:
- Guarantee 75% or 100% of the principal at a chosen date, maturity or death
- Bypass probate, proceeds will go directly to beneficiaries privately in most cases
- Provide creditor protection in many cases
These benefits are useful if you want to preserve the value of your accumulated capital or want to control who receives your assets and avoiding your estate when you pass away.
An income annuity is like a personalized pension. You transfer a lump sum of money to an insurance company and they provide a regular income stream that is contractually guaranteed for a fixed period. One of the greatest threats for today’s retiree is longevity. Because longevity amplifies risks like market fluctuations or running out of money. Incorporating annuities into your retirement portfolio is to address this problem so the essentials are taken care of regardless of how the markets behave.
Estate Protection Funds
Estate protection funds are only for clients between ages 80 to 90. The most important feature of this product is a “death benefit guarantee” which means the policy guarantees (from the deposit date) 100% of the money will go directly to your beneficiaries when you pass away. For an older retiree, they can participate in the growth of the markets without worrying about any market downtowns that could negatively impact the estate.