Marci I have 2 questions 1/We have a friend who has equities , all the stocks say segregated. They understand what a segregated fund is but what is a segregated stock 2/ I here that insurance companies now have a program that they sell a product in the rrsp that pays a 5.25=5.5% on the investment until age 71 .At that age it is converted and it is a 6% rate of return after 71. Investors group is pushing this producct. Do you have a similar product and what do you know about this.... Allan
Hi Allan. I am a bit confused by Question 1. Are you referring to how the stocks are referred to on the investment statement? I would need to see a copy before I can comment. I certainly understand segregated funds, but segregated stocks are something new.
Regarding Question 2, I believe you are referring to Guaranteed Minimum Withdrawal Benefit (GMWB) plans. These plans are offered by most major insurance companies, and yes I can offer this solution. This product is quite complex and should be looked at on a case by case basis. Most of these plans offer guarantees; however, if additional funds are ever withdrawn, the guarantees may no longer exist. Also, if one already has enough guaranteed income from other sources, this product may not be right for them--there are fees associated with this type of environment and one may be paying for a service one does not need.
I do hope this answers your question. Please let me know if you have additional questions.