Connect wealth coloured logo
Silhouette of a super hero standing on a large pile of coins

Segregated Funds: Superhero or Overpriced Sidekick?

Today we’re diving into the world of Segregated Funds, also known as Seg Funds in the insurance world. Seg Funds have been getting a lot of buzz lately, often portrayed as the invincible heroes of the investment world. But before you jump on the bandwagon, let’s take a closer look and see if they truly live up to the hype.

What are Segregated Funds?

Seg Funds are a type of investment product that combines features of both mutual funds and insurance. They offer the potential for growth like a mutual fund, but with the added benefit of capital guarantees. These guarantees can come in various forms, such as:

  • Reset Guarantees: These ensure that if the fund falls below a certain point, your investment will be brought back up to that level at specific times, often annually.
  • Maturity Guarantees: These guarantee a minimum return on your investment by the time it reaches its maturity date.
  • Death Benefit Guarantees: These ensure that your beneficiaries receive a certain amount of money in case of your passing.

Are They Worth It?

Seg Funds sound pretty amazing, right? Superheroes with built-in safety nets! However, there’s a catch: cost. Seg Funds tend to come with higher fees compared to traditional mutual funds. This can significantly eat into your potential returns over time.

So, Who Should Consider Seg Funds?

Seg Funds might be a good fit for some investors, particularly:

  • Seniors: If you’re nearing retirement and prioritizing capital protection for your legacy, the guarantees offered by Seg Funds can provide peace of mind.
  • Risk-Averse Investors: If you have a low tolerance for risk and are looking for a more conservative investment option with some growth potential, Seg Funds could be worth exploring.

Who Should Look Elsewhere?

For other investor profiles, the costs might outweigh the benefits:

  • Younger Investors: If you have a longer time horizon for your investments, you can potentially weather market downturns and benefit from higher returns offered by traditional mutual funds.
  • Business Owners: Business owners often have access to other options for wealth transfer and may not need the specific features of Seg Funds.

The Takeaway

Seg Funds offer a unique blend of growth potential and capital protection. However, they come at a premium. Before investing in Seg Funds, weigh out the pros and cons and consider your individual circumstances. Always talk to your financial advisor to see if Seg Funds are the right fit for your investment portfolio.

Mark Smigel headshot with blue background

Mark Smigel, Fincial Advisor

Mark is dedicated to educating clients and assisting with wealth creation and protection. He serves business owners, professionals, and young clients beginning their financial journey. Known for making complex financial concepts relatable, Mark is a valued resource within the accounting community. When not working, he enjoys volunteering, playing hockey, cooking, and reading. Mark resides with his family, serving on various volunteer boards.

Connect Wealth is an independent financial planning firm that offers holistic advice to clients based on their current goals and future aspirations. We use well-established workflows and cutting-edge technology to maximize planning efficiencies while simplifying the process for clients. Learn how you can maximize your financial opportunities at www.connectwealth.com

Share this article

Recent Posts

Need financial guidance?
Our advisors are here to help.
Contact Us
Connect wealth coloured logo

Copyright © 2024 Connect Wealth Inc.

Office Hours:
Monday to Friday 8:00 AM – 5:00 PM
Closed Statutory Holidays

Phone: 604.542.4298
Toll Free: 1.877.542.4298
Email: info@connectwealth.com

Head Office:
13-2970 King George Blvd.
Surrey, BC  V4P 0E6

Terms & Conditions
Privacy Policy 

Linkedin Instagram Facebook-f Youtube Twitter

Subscribe to Our Monthly Newsletter

* indicates required

Get the latest personal and business financial planning updates with Connect Wealth's monthly newsletter.

We value your privacy and never share or sell your email. You can opt-out at any time by clicking the unsubscribe link in the email footer.

We use Mailchimp as our marketing platform. By clicking below to subscribe, you acknowledge that your information will be transferred to Mailchimp for processing. Learn more about Mailchimp's privacy practices.

Michelle Jones

Administrative Assistant

Michelle, an Administrative Assistant focusing on insurance products and services, aims to provide high-level customer support and build strong client relationships. She holds a Bachelor of Business Administration from Simon Fraser University and has been working in the financial services industry since 1993. Outside of work, Michelle enjoys spending time with her family, walking her dog, baking, reading, and enjoying nature.

Melanie Tessarolo

Melanie Tessarolo

Office Manager

Melanie entered the financial services industry in 2007 and joined our team in 2012. With extensive administrative experience, she ensures the client services team operates smoothly and efficiently. Melanie is dedicated to excellence, ensuring all team members have the resources they need to excel. Outside of the office, she enjoys spending time at hockey rinks, riding rings, baseball fields, or camping with her husband, young kids, family, and friends.

Lori Smigel

Lori Smigel

Administrative Assistant

With nearly 20 years of experience in administrative support in the financial services industry, Lori enjoys being part of a team and working with her husband, Mark, to support clients. She is organized and excels in building strong client relationships. Lori is excited to be part of the professional team at Connect Wealth. In her free time, she enjoys hiking, paddle boarding, long walks, and spending quality time with her family and friends.

Kathe Atkinson

Kathe Atkinson

Bookkeeper
Kathe joined our team in September 2015, bringing her extensive experience in bookkeeping and administration from the travel, legal, and accounting industries. She handles company-related bookkeeping and administrative duties, and also provides administrative services for some of our group clients, facilitating enrollment, withdrawals, and addressing member and employer inquiries. Kathe enjoys working with numbers and is dedicated to supporting the Connect Wealth team. In her free time, she loves planning her next travel adventure, seeking sunshine, and spending time at the lake with family and friends. Kathe is passionate about accounting, accuracy, and looks forward to continuing to serve our clients with excellence.
Eddy Choi

Eddy Choi

Administrative Assistant

Eddy coordinates account openings, transactions, and information updates, ensuring client inquiries are promptly addressed. With experience in various financial companies and a financial planning course from BCIT, Eddy values customer care and efficiency. She enjoys traveling, spending time with her mom, and working at Connect Wealth. Eddy finds satisfaction in completing tasks timely and making clients happy.

Brittany Potter

Administrative Assistant

Brittany is part of our administration team, coordinating investment account needs and ensuring timely and accurate communication. With over 13 years of experience in the investment and financial planning industry, Brittany brings a wealth of knowledge to her role. Outside of work, she enjoys spending time with family and friends, baking, and being creative through arts and crafts. Brittany is dedicated to providing helpful and friendly service.

Suzanne Jacob

Suzanne Jacob

Financial Advisor

With a successful management career at New York Life and Canada Life, Suzanne transitioned to financial advising. Her 20 years in management have given her a deep understanding of the challenges and rewards of financial planning. Suzanne is passionate about helping others achieve their financial goals and securing the necessary safety nets. She is actively involved in her community, mentoring young entrepreneurs, and serving on the boards of several non-profit organizations. Suzanne enjoys the support of her spouse, Gaynal, and her four-legged friend, Sunny, who handles public relations. Suzanne believes it is never too late to start a conversation about your financial plan.

Corey Barker

CPA, Financial Advisor

Corey is a CPA with a Bachelor of Commerce in accounting from the University of Calgary. He began his career in 2018 at MNP LLP, where he completed his CPA articling and later became a tax specialist and manager. Corey has extensive experience in tax planning, reorganization engagements, and corporate finance. He joined MNP Corporate Finance Inc., serving as a financial advisor to clients in business sales and acquisitions. Committed to helping clients achieve their financial goals, Corey focuses on areas such as tax minimization, maximizing shareholder value, and implementing succession plans. Outside of work, he enjoys physical activities and spending time with his wife, continually seeking knowledge to benefit his clients.

Mark Smigel

BA, BEd, CFP®, EPC™
Certified Financial Planner®, Elder Planning Counsellor

Mark is dedicated to educating clients and assisting with wealth creation and protection. He serves business owners, professionals, and young clients beginning their financial journey. Known for making complex financial concepts relatable, Mark is a valued resource within the accounting community. When not working, he enjoys volunteering, playing hockey, cooking, and reading. Mark resides with his family, serving on various volunteer boards.

Julia Friesen

BSc, CFP® – Certified Financial Planner®

Julia is a Certified Financial Planner with a background in actuarial science, providing her clients with valuable analytical and technical expertise. She holds a BSc in Physics, an LLQP designation, and a CFP® designation. Julia excels at helping clients develop plans that align with their values and achieve their goals. In her free time, she enjoys traveling, spending time with friends, playing and writing music, and connecting with her husband and three children. Julia looks forward to continuing to add value for her clients and supporting the team at Connect Wealth.

Joey San

Financial Advisor

Having been in the financial planning industry since 1990, Joey specializes in Risk Management and Estate Planning. He holds a Life and Segregated Funds License and has extensive field experience. Joey joined Connect Wealth in 2019 to work with his daughter Cassandra, creating the ultimate father/daughter team. Born in Fiji and relocated to Canada at 12, Joey is married to his high school sweetheart, Rita. They have three children and a grandson, Trysten. In his spare time, Joey enjoys golfing, fishing, and spending time with his grandson. Joey is passionate about providing clients with the best financial advice.

Vince Olfert

MBA, CIM, CFP® – Certified Financial Planner®

Vince specializes in helping business owners and their employees build and protect their wealth. With his years of experience, he understands the financial and emotional issues that come with managing wealth. He was highlighted in Advisors Edge magazine for his work with pensions and group retirement services. Vince continually strives to find new ways to communicate complex financial concepts so they are easy to understand for our clients.

He spends his spare time with his wife and kids, coaching community sports, and volunteering with local youth programs.

Cassandra San

BA, CFP® – Financial Planner

Cassandra San, a Certified Financial Planner, is dedicated to helping individuals and families achieve their financial goals. A University of Idaho graduate with a B.A. in Business, she started her career in finance in 2016 alongside her father, emphasizing the importance of accessible financial advice for everyone. Cassandra’s practice takes a holistic approach, ensuring clients receive tailored guidance. Outside of work, she enjoys eating delicious food, working out, and spending quality time with her young family and friends.

Mike Erickson

Mike Erickson

Qualified Associate Financial Planner™

Mike, who joined Connect Wealth in 2013, has a natural ability to connect with clients on both professional and personal levels. He entered the financial planning industry to give clients the confidence they need for their financial futures. Mike oversees the Group Retirement Plan Division, working with companies of all sizes and assisting clients in both saving for retirement and managing decumulation. A graduate of Trinity Western University’s School of Business, Mike holds multiple designations including LLQP and QAFP®. Outside of work, he enjoys coaching his sons’ baseball teams, spending family days at the beach, and volunteering in his community. Mike resides in Abbotsford, BC, with his wife Amy and their two boys.

Vince Olfert

MBA, CIM, CFP® – Certified Financial Planner®

Vince specializes in helping business owners and their employees build and protect their wealth. With extensive experience, he understands the financial and emotional challenges of managing wealth. Vince has been highlighted in Advisor’s Edge magazine for his work with pensions and group retirement services. He continually strives to make complex financial concepts easy to understand for clients. In his spare time, Vince enjoys spending time with his family, coaching community sports, and volunteering with local youth programs.