Over 15 years ago, I was at an advisor’s office, he was dual licensed; mutual funds & life licensed and he had this great comparison chart about the difference between segregated funds and mutual funds on a whiteboard. It was super simplistic, but it really helped decipher the differences. 15 years later, I’m still inspired by this so I’ve put together an infographic outlining the difference between seg funds and mutual funds.
There are definitely more differences than highlighted in the infographic but I wanted to cover the most important ones to help advisors guide clients to making sensible decisions for their circumstances.
- Creditor Protection
Seg funds are useful for estate planning and creditor proofing (and sometimes investment loans and aggressive investments) but keep in mind the fees are typically higher and there are not as many funds available compared to mutual funds.
If you’re a subscriber advisor of ours, please let us know if you’d like this infographic to use with your clients, prospects and referral sources such as accountants, estate planning lawyers and estate professionals.