With the demand for guaranteed income expected to grow, use of segregated funds (variable annuities) should remain steady. As the baby boomers retire they will allocate some percentage of their retirement nest egg in these funds of products that provide a guaranteed minimum withdrawal benefits (GMWB).
Keybase Financial Group does not believe that there is one financial planning strategy suitable for all clients. Segregated funds offer protection, growth potential as well as providing a worry-free solution to help our clients meets their savings and retirement goals. With Keybase you get a choice, selection and the best combination of investment and insurance solutions.
This is a good option to consider if clients expect to draw income from the investment in the not too distant future. But if the objective is primarily accumulation rather the cash flow, one can consider the Guaranteed Investment Fund (GIF).
Downside protection and more
GIFs are similar to mutual funds in which they can invest in a broad large of fixed income products as well as domestic and international equities. Unlike mutual funds, GIFs are an insurance product that offers the following benefits:
- Guaranteed value at maturity. There is a 75% threshold downside protection as well as annual reset to enable the clients to "lock in" investment gain when the market perform well.
- Death benefit guaranteed upon the death, the named beneficiary receives either the market value at the time or 100% of the amount of the initial deposits whichever is higher.
- Credit or protection. Because they are insurance contracts, they are protected from creditors.
Keybase Insurance Agency Ltd. also offers other life insurance products like long term care, disability and critical illness insurance. Please go to http://www.keybase.com for more related insurance information.
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