I have heard of mutual funds, what is a seg fund?
Segregated funds are hybrid mutual funds. In other words, they are the same funds you can purchase at bank only with certain advantages or guarantees. These can range from, original amount deposited and the growth is life insured. Fund companies that Assumption uses are well known performers, such as Fidelity, AGF and CI Investments.
Mutual funds can fall off dramatically in price? I remember 2008 when my investments fell 30% or more.
Segregated Funds have built in guarantees that insure that your investments do not fall to those levels. Think of the difference between Mutual Funds and Seg Funds as two brand new identical cars on the lot. Same price, same color, same everything, except one car has a much longer warranty protection. The choice becomes obvious which one you would take. Seg Funds have the additional protection.
Are there any fees I have to pay to begin or transfer money to Assumption?
In most cases no. Neither I nor Assumption charge any brokerage upfront fees. Some banks or advisors charge an additional fee to handle your money regardless whether it performs or not. Now all funds have MER’s (management expense ratios). These are fees that are deducted from the gross return of the funds’ performance to help pay for the fund managers and personnel to generate your best results.
Your concern is the net return. What is your growth? When you see a fund’s performance of 3%, 10% 15% etc., that is your net result after management fees have already been deducted. The bottom line, sort of similar to take home pay after deductions, what is in your pocket.
You may also want to see if there are any DFC’s or deferred sales charges. It depends how long you have held your investments. Usually if you have funds for 6 years or more there will be no charges, but that is something we can check on before boarding.
How much insurance do I need?
Frequently asked question. It really does depend on individual needs and affordability. Term insurance is the least expensive, but there is a varied range to cover everyone’s need from age 2 to 102.
Remember you cannot replace a life, it is far too precious, but you are simply replacing permanent lost income along with present and future expenses. Hopefully you are around to do this, but just in case you are not, then we need to plan for that now, not when it is too late.
Do you own these same funds that you are offering me?
I certainly do. I have been doing this for a number of years with great success. I will own many of the funds that all my clients have, perhaps in different amounts depending on age and income, but I only recommend funds that not only do I believe in, but own as well .
My last advisor, I never heard from after we signed. Never heard from him/her when times are tough, or the company constantly changes advisors and I feel like I am being bounced around. Can I expect the same from you?
I keep in contact with all my customers on a regular basis. Phone or email. I often will use analogies in keeping the investment picture simple. I want everyone to understand, what they have, why they have it, and how it works. I share in your success.