

Protecting your Investments for Estate Purposes
When we invest our money, we have a reasonable expectation that our initial investment will appreciate over time. As we get older, we tend to want to take less investment risk, especially if there is a goal to pass on some of our investments to our beneficiaries. Often seniors feel trapped into investing in GIC’s because they don’t want to take on any investment risk. What most people don’t know is that we can protect some of your investments, for estate purposes, by using Guaranteed Investment Funds or GIFs. What are Guaranteed Investment Funds (GIFs)? Guaranteed Investment Funds are a type of investment product offered by insurance companies that allows clients to invest in an equity, bond and/or index fund that can guarantee 100% of your initial investment passes to your beneficiaries while still offering the potential for investment/market growth and guaranteed lifetime income. Any money in a non-registered GIF can pass confidentially directly to beneficiaries, avoiding potential estate friction. This money will also bypass the estate and thus it will avoid probate tax. Because this wealth transfer is confidential it can provide an excellent option if you are gifting money, passing funds unequally between children or grandchildren, and do not want everyone to know where your money is going. All these features do come at a cost, and that cost comes in the form of a higher Management Expense Ratio (MER) than a traditional Mutual Fund.
When should you invest in GIFs? In our opinion, the best time to consider investing in GIFs is if you are between the ages 75-90, if you are a GIC investor or if you believe your life expectancy is 10 years or less. Please contact Jon Glougie or Ryan Smillie if you would like to learn more.
This information has been prepared by Luft Financial. Opinions expressed in this article are those of Luft Financial only and do not necessarily reflect those of iA Private Wealth. Furthermore, this does not constitute an offer or solicitation to buy or sell any of the securities mentioned. The information contained herein may not apply to all types of investors.
How do we elevate your wealth?
It begins with understanding your needs and creating a comprehensive and tailored financial plan to help reduce tax, manage risk and grow your portfolio over the long term. Learn more about how we help you achieve financial security and peace of mind.
News & commentary

September 2023 Portfolio Management Team Update
September 2023 Portfolio Management Team Update By Elvis Picardo, CFA®, CIM, Portfolio Manager, iA Private Wealth September 20, 2023 Market Review Global equities retreated in August, after posting their best performance in the first seven months of a year since 2009, as uncertainty about the future trajectory of interest rates – fueled by stubbornly high […]
Read more
August 2023 Portfolio Management Team Update
August 2023 Portfolio Management Team Update By Elvis Picardo, CFA®, CIM, Portfolio Manager, iA Private Wealth August 15, 2023 Market Review Global equity indices added to their solid first-half gains in July on optimism about slowing global inflation and a potential end to the Federal Reserve’s interest rate hikes. The MSCI World Index’s 16.2% YTD […]
Read more
July 2023 Portfolio Management Team Update
July 2023 Portfolio Management Team Update By Elvis Picardo, CFA®, CIM, Portfolio Manager, iA Private Wealth July 26, 2023 Market Review Global equity indices rebounded in June, as economic data that suggested resilience in the U.S. economy raised investors’ hopes for a “soft landing” (which is defined as a slowdown in economic growth that avoids […]
Read more