Insurance Investing

Mitigate The Risk Of Equity Mutual Funds

To benefit from mutual funds, investors must be willing to accept a certain level of risk that comes from market volatility. This risk can pay off in higher returns, but there is also the possibility that you could experience a loss. If the thought of losing any of your assets, even temporarily, keeps you up at night, then you may want to consider adding segregated funds to your portfolio.

Segregated funds combine the protective benefits of an insurance contract with the investment performance potential of mutual funds. Segregated funds are professionally managed investment funds that give investors the opportunity to build wealth while reducing their risk.

An Effective Investment Strategy

While segregated funds are similar in many ways to mutual funds, they can offer you some unique features:

  • Principal protection
    Your original investment may be guaranteed for 75 to 100 per cent of its value, no matter how the underlying mutual fund is performing, less any reductions for withdrawals or fees.
  • Possible reset feature 
    You can possibly lock in any gains several times a year.
  • Pay your beneficiaries
    Funds bypass probate (not applicable in Quebec) to go directly to your beneficiaries.
  • Creditor protection 
    Funds have potential protection from creditors.
  • Predictable and sustainable retirement income 
    A new type of segregated fund offers guaranteed withdrawals that provide you with a predictable and sustainable income in retirement.

We Can Help You Navigate The Segregated Fund Universe

By working with CIBC Wood Gundy, you can gain access to a wide range of segregated funds. We have established relationships with Canada's leading insurance and mutual fund companies providing the most innovative segregated funds available. Together, we can review their offerings to determine which funds have the options and features that are right for you today and tomorrow.

Uncover Your Needs

Together with your CIBC Wood Gundy Investment Advisor, you can review your current situation and your needs for the future to determine a path to your financial future. To find out how we can help you, use our Find An AdvisorOpens a new window in your browser. tool to locate a CIBC Wood Gundy Investment Advisor near you.

Ensuring Income For Life

When planning for your retirement years, the first priority is to make sure you can meet your income needs. You may also wish to consider your longer-term intentions or estate objectives for investment capital. Now, especially with a rapidly growing retirement population, many are coming to realize that some life insurance products such as insured annuities and guaranteed investment accounts (GIAs) are specifically designed to ensure income for life, while being estate friendly.

Gain The Benefits Of Annuities

For people who are retired, or are approaching retirement, an insured annuity is worth considering. As well as providing higher guaranteed income to complement other sources, an insured annuity allows you to preserve your capital for the eventual transfer to your heirs. An insured annuity provides:

  • Guaranteed income for life
  • Income security through regular income payments
  • Distinct tax advantages
  • Tax-deferred growth
  • Preservation of capital

Get The Rewards Of GIAs

A GIA is very similar to a guaranteed investment certificate (GIC) or term deposit but includes major estate-planning advantages. A GIA is treated as an insurance contract allowing the annuitant/owner to appoint a beneficiary. At the death of the annuitant, the investment becomes liquid, bypasses the estate and goes directly into the hands of the designated beneficiary. A GIA provides:

  • Flexibility regarding maturity term
  • The ability to designate a beneficiary under the annuity contract to bypass probate (not applicable in Quebec) and reduce costs
  • Potential creditor protection, in certain circumstances
  • Possible pension income tax credit for those 65 and over
  • Competitive interest rates

Connect With CIBC Wood Gundy

To attain the retirement you dream of, your CIBC Wood Gundy Investment Advisor can guide though the decisions you need to make. Contact your CIBC Wood Gundy Investment Advisor, who can introduce you to a qualified Estate Planning Specialist (Financial Security Advisor in Quebec). To find out how we can help you, use our Find An AdvisorOpens a new window in your browser. tool to locate a CIBC Wood Gundy Investment Advisor near you.