What are Segregated Funds, and How Can they Complement an RRSP Portfolio?

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By RBC Insurance • Published November 22, 2021 • 3 Min Read
But when thinking about the type of funds to choose, keep in mind that as you approach retirement, your financial needs, goals, and how you invest will start to change.
While retirement may still be in the distant future, eventually you’ll need to protect the money you’ve worked hard to save, while still making it grow in order to carry you through retirement. In fact, according to an RBC Insurance survey, 87 per cent of Canadians aged 55 and over agree that they’d like an investment product that guarantees the money they invest, but that also offers opportunities for growth. Yet 60 per cent are not aware that this option is available with segregated (seg) funds.1
Segregated funds are an investment solution only available through insurance companies. They help to grow and protect your hard earned savings with the added security of principal guarantees. Think of it as a combination of a mutual fund and an insurance policy. In other words, money is invested in professionally managed and diversified assets with the growth potential similar to mutual funds. But segregated funds have additional insurance components that protect the original amount invested.
Segregated funds offer several other unique benefits that other investment products don’t have, including:
These guarantees and benefits, combined with the growth potential, are what make segregated funds so appealing to those who are planning or approaching retirement.
Segregated funds can only be purchased through a life insurance advisor. Have an RBC Insurance advisor contact you to learn more.
Whether you’re building up your nest egg or ready to turn your hard-earned savings into retirement income, our solutions can help you make the most of your money. Have an RBC Insurance Advisor call you to learn more.
This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.
Any amount that is allocated to a segregated fund is invested at the risk of the contract holder and may increase or decrease in value. RBC Guaranteed Investment Funds are individual variable annuity contracts and are referred to as segregated funds. RBC Life Insurance Company is the sole issuer and guarantor of the guarantee provisions contained in these contracts. The underlying mutual funds and portfolios available in these contracts are managed by RBC Global Asset Management Inc. When clients deposit money in an RBC Guaranteed Investment Funds contract, they are not buying units of the mutual fund or portfolio managed by RBC Global Asset Management Inc. and therefore do not possess any of the rights and privileges of the unitholders of such funds. Details of the applicable Contract are contained in the RBC GIF Information Folder and Contract at silver.rbcinsurance.com/gif.
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