At P.D. Foster Insurance we wish everyone knew more about their investment options. We offer some of the best solutions to help you create a nest egg with reduced risk. Whether you want something to build your own wealth or create financial stability for loved ones with a more substantial estate, our team can help you find exceptional wealth-building opportunities you might not know exist.
Segregated funds are market-based investments where many investors pool together money to invest in a variety of securities such as stocks and bonds. With the right strategy, each investor reaps the rewards of a well-planned segregated fund which increases in value. They work similarly to mutual funds with a few important differences:
- A segregated fund is an insurance contract
- They guarantee 75% to 100% of your premiums (fewer withdrawals) at the time the contract matures or when you die
- You can find segregated fund contracts offering certain income guarantees to reduce risk
- Segregated funds are often protected against creditor seizure if you face a lawsuit or bankruptcy
- Segregated fund contracts allow you to name beneficiaries, as opposed to leaving them to your general estate
- Beneficiaries can receive the money in your preferred manner either as a lump sum or as an annuity paid to them each year
We can help you find a segregated fund that meets your needs and reduces risk.
Annuities are long-term investments available through insurance companies. They are designed to protect your income, so you don’t run out of money during retirement. We highly recommend annuities for people of all ages as it allows you to grow your wealth by making periodic payments. Each year your investment grows, and you can contribute the amount that suits your needs. Best of all they are very flexible, so you can decide how you contribute whether it is a lump sum or small contributions. You can receive payments when you require it and choose between a fixed, variable or indexed rate of return based on the level of risk you are willing to take. It is one of the best ways to save for retirement with many benefits including:
- You have a guaranteed income for life or for your spouse when you die
- They are adjusted to meet the needs of the cost of living
- You have a guaranteed minimum withdrawal
- You don’t have to worry about market losses like securities
- You can access your funds based on specified limits
- You can leave your annuity to a beneficiary
We can help you decide the terms and conditions for your annuity based on your needs.
Tax-Free Savings Account (TFSA)
The TFSA program allows you to save money throughout your life without the worry of taxes. As a result, the contributions you make are not deductible for income tax purposes and income earned from the account is tax-free at the time of withdrawal. Although there can be administrative or other fees applied by the financial institution, you are not taxed for capital earned. You can borrow money to contribute to a TFSA but interest on money borrowed is not tax-deductible. There are three types of TFSAs:
- Annuity contract: These are the TFSAs available through PD Foster Insurance. They are a contract that holds the insurance company responsible to make annual payments at the time of your retirement or when you request payments. This is a risk-free retirement fund.
- Deposit: A TFSA deposit account is acquired through a financial institution such as a bank. You open a TFSA account and interest is applied to your account. This allows you to withdraw money tax-free when you need it making it a great option if you want to create an emergency fund or save for something special such as a trip, down payment on a home, or a car.
- Arrangement in trust: In this case, a third party, such as a bank, holds assets for your beneficiary. This provides quicker access to the money you leave for a loved one as opposed to something left in your will.
We can discuss your needs and decide what type of TFSA is right for you.
Why Choose P.D. Foster Insurance?
At P.D. Foster Insurance we have been offering life insurance solutions to our customers since 1949. When it comes to insurance investments, we are excited to help our customers build their wealth. We provide comprehensive investment opportunities based on your wealth goals, ensuring you don’t take unnecessary risks and choose an investment ideally suited to your needs. Our goal is to find the right insurance investment allowing you to reap the full financial benefits.
Speak to our team today to learn more about the insurance investment opportunities and solutions available to grow your wealth.