A volatile market and shrinking retirement savings time-lines have made many mature investors aware that having certain guarantees linked with their capital investment is important risk management for their portfolio.

With less assurance that pension funds will survive corporate bankruptcies and not be reduced, many investors prefer to have certain guarantees on their invested capital comforting.  The up-side of seg fund products, is that they carry maturity, estate, guaranteed re-setting of capital, and other benefits.

Resembling mutual funds, seg fund investments offer sweetened aspects of capital protection. They mirror mutual funds yet have an empowering feature of a contract that guarantees investors receive no less that 75% of their maturity guarantee value. Some companies offer 100% maturity guarantee.

These funds were developed first by life insurers as a means to expand wealth management and they were already experts at insuring risk. Insurers set aside reserves to cover seg fund maturity and death benefit guarantees. Insurers had developed  the original risk management vehicle for the investor—seg fund investment products.

Guaranteed seg funds held close to $60-billion in assets at the end of 2008. Do you like the idea of capital guarantees in your retirement portfolio? Call your advisor to compare the benefits of securing invested capital for your future.