Hi David. Is this strategy of annual reset for segregated funds only for money that you want to leave for your family after you pass and not for you to use as part of your retirement planning. What is the MER for these segregated fund and is there an additional cost at each reset. Thanks
Hi Rosemarie, great question. Using the rest option is purely about protecting market gains. It doesn't prevent your market balance from fluctuating with volatility. As it relates to Retirement planning, resets will not enhance your retirement income. Resets protect the value of your portfolio if you pass away. MER's vary from company to company although the ones I've used increased the MER by 0.10
@@rosemariel.9000 no not at all. Life insurance grows with the dividend credited to the account. The dividend is fairly predictable and stable. In addition, the life insurance has a death benefit which pays out much higher. On the other hand investment returns are subject to volatility.
You seem to be saying that the reset occurs at the high watermark value regardless on what date that occurs. Is that correct or is the annual reset based on the value of the account on its policy anniversary?
Thanks for watching the video and for your comment. The reset is a manual decision to choose to reset at a given point within the year. For instance, someone may have elected to reset in December 2021 because they wanted to protect strong market growth in 2021. That would have been a good decision given the market declines in 2022 so far.
Well explained. Thank you
Hi David. Is this strategy of annual reset for segregated funds only for money that you want to leave for your family after you pass and not for you to use as part of your retirement planning. What is the MER for these segregated fund and is there an additional cost at each reset. Thanks
Hi Rosemarie, great question. Using the rest option is purely about protecting market gains. It doesn't prevent your market balance from fluctuating with volatility. As it relates to Retirement planning, resets will not enhance your retirement income. Resets protect the value of your portfolio if you pass away. MER's vary from company to company although the ones I've used increased the MER by 0.10
@@AaronWealthManagement Thanks David for the response. Is this similar to a life insurance policy that appreciates in value when the market goes up.
@@rosemariel.9000 no not at all. Life insurance grows with the dividend credited to the account. The dividend is fairly predictable and stable. In addition, the life insurance has a death benefit which pays out much higher. On the other hand investment returns are subject to volatility.
You seem to be saying that the reset occurs at the high watermark value regardless on what date that occurs. Is that correct or is the annual reset based on the value of the account on its policy anniversary?
Thanks for watching the video and for your comment. The reset is a manual decision to choose to reset at a given point within the year. For instance, someone may have elected to reset in December 2021 because they wanted to protect strong market growth in 2021. That would have been a good decision given the market declines in 2022 so far.