Topic: How To Invest

Pat, I don’t remember you ever evaluating Manulife’s IncomePlus plan. I am interested in your take: would it make sense as part of a portfolio?

Article Excerpt

The Manulife IncomePlus program combines an annuity with segregated funds. Annuities are contracts that pay you a fixed sum every year. However, returns on annuities are closely linked to interest rates, which are now near historic lows. For that reason alone, we advise against buying any annuity. Segregated funds guarantee that you’ll get back all, or part of, your initial capital after a period of years — 20 years in the case of IncomePlus. Segregated funds also provide a death benefit. If were to die before the end of the 20-year term, your beneficiaries would get a 100% guarantee of the initial investment, or the market value of the fund, whichever is higher. What’s more, because segregated funds are insurance products, you can name a beneficiary. Since it’s paid directly to your beneficiary, it’s not considered part of your estate, so you avoid paying probate fees. Segregated funds are also protected from creditors under certain conditions. However, these benefits come at a..

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