Are you looking for ways to enhance your income and diversify your portfolio? Discover products that offer guaranteed income, investment protection and tax efficiency.
At RBC Wealth Management Financial Services, we work with you and your trusted professionals to determine which income solutions align with your wealth planning needs. These solutions may help diversify or enhance your investment portfolio, and they include annuities and segregated funds.
As these products are insurance-based, they may be passed on to beneficiaries without going through the estate settlement process and being subject to probate fees.
Your retirement may include a guaranteed ongoing income.
Retirement signals the end of your working life and the end of the comfort that comes with a regular source of income. Not having those wages may cause some concern, but you may be able to receive a guaranteed ongoing income provided by a life annuity.
An annuity, a non-liquid investment, will pay you capital and interest over a fixed period of time in exchange for a lump sum paid to the insurance company. It may be an efficient way to pay for fixed costs in retirement.
The best part? You will never outlive the income stream with life annuities—and only the interest income is taxable. Plus, the taxable portion of the annuity payment is usually significantly lower than that of other fixed-income investments like Guaranteed Investment Certificates (GICs). Annuities put more cash in your pocket without the need to reinvest funds at an unknown future interest rate.
Business owners looking to create retirement income while maximizing their business benefits would combine an annuity with a life insurance policy.
Preserve what you have built with the potential for growth.
Many Canadians are unsatisfied with the returns offered on GICs and term deposits in today’s market. Still, they are unwilling to take on the added risk of mutual funds or stock investments.
If you are looking to grow, protect and transfer your wealth, traditional segregated funds may meet your needs. They offer the potential for capital growth, flexibility in diversification, investment choice and security. These funds help you preserve what you have built and potentially capture future market growth.
Like mutual funds, segregated funds are professionally managed and invested in a portfolio of diversified securities. However, the insurance component of segregated funds offers you additional benefits, such as principal investment and death benefit guarantees, the ability to lock in market growth and the potential for creditor protection.
Business owners may want to consider this type of insurable investment when looking to grow their assets conservatively.
No defined benefit pension plan? No problem.
Fewer companies offer defined benefit pension plans—providing a retirement income stream—due to the costs and risks of administrating them. Due to this, many people must get most of their retirement income from their savings and investments.
Income segregated funds are designed to aid Canadians without defined benefit plans to better manage their savings before and during retirement. They provide you with investment choice, the potential for capital growth and diversification, and the freedom to decide when to start and how much income you need.
Like traditional segregated funds, an income segregated fund offers a death benefit and a maturity guarantee. Most people use them to provide a consistent, lifelong income stream and fund their retirement.
Business owners may want to consider this type of insurable investment when looking to create a guaranteed corporate income stream.
Receive predictable returns protected from market exposure.
GIAs are the insurance industry’s version of GICs. They offer a fixed interest rate comparable to those available with GICs. In addition, these annuities provide benefits that may include the ability to bypass probate.
Available in a wide range of terms, GIAs can help safeguard your capital to meet your short- and long-term wealth needs. Typical terms range from 30 days to 10 years.
“It isn’t about what our clients make but more importantly what they keep at the end of the day. Our experts have helped us maximize our value by providing thoughtful advice to our clients when they need it most.”
Michael BogleSenior Investment and Wealth Advisor, Financial PlannerThe Bogle Private Wealth GroupRBC Dominion Securities Inc.
Connect with RBC Wealth Management Financial Services or speak with your RBC advisor* to learn more about insurance planning.
*Advisors at RBC Dominion Securities or RBC Phillips, Hager & North Investment Counsel can assist you with insurance planning.
Provide financial security for your loved ones and other beneficiaries when you pass away. Discover solutions that may also protect the value of your estate from taxes.
Recovering from a serious accident or illness or needing long-term care may have lasting financial repercussions. Explore options designed to help ease your financial burden.