How do segregated funds assist with retirement planning?

Segregated funds play a significant role in retirement planning by combining the potential for capital appreciation with features that offer financial security. They are often structured to provide a level of growth potential by investing in a diverse range of asset classes, which can include equities, fixed income, and other securities. This investment approach aims to achieve higher returns over the long term, crucial for individuals saving for retirement.

Additionally, segregated funds come with specific protections that traditional mutual funds do not offer. These include features such as capital guarantees at maturity or death, which ensure that investors' principal investment is returned to them or their beneficiaries, despite market fluctuations. This aspect is particularly appealing for those concerned about preserving their assets against market volatility as they approach retirement.

The combination of growth potential and these protective features makes segregated funds an attractive choice for individuals looking to balance risk while pursuing their retirement goals. By addressing both wealth accumulation and capital protection, they effectively assist in creating a more secure financial future for retirees.