"Recession Proof Investing"

Many people at this time are really worried not only about their investments but investing with an RRSP season right around the corner; don’t be. History repeats itself and this economic downturn provides plenty of opportunity. There are many types of investors but majority certainly like proven strategies, value investments and guaranteed options in these markets. If you want to recession proof your investments here some ideal options; Segregated Funds, Guaranteed Investment Options, Annuities and Secured Lines of Credit paying you interest while managing debt.

What are Segregated Funds? Insured Funds, they became very popular when many people were tired of the highs and lows of the market. The general public was looking for capital guarantees on their deposits. Insurance companies responded with guarantees on their deposits acknowledging that the majority of investors would be investing for retirement and NOT short term capital gain. The guarantees do have a maturity period like a GIC and in economic slumps provide you with a level of security that your lump sum is there while your money is still working for you.

These funds provide a variety of distinct advantages not fund in the securities market such as capital guarantees, potential creditor protection, estate by pass (no estate taxes on death) payable to the beneficiary, while enjoying the opportunity to grow their investments in a secure environment. The insurance industry best kept secret.

In recent years, they have gained a tremendous amount of momentum as small business owners learned how flexible they were as well as the advantages wrapped around these investments. With the momentum on the rise, many mutual fund companies joined forces with many insurance companies providing you thousands of options. Today you will find some of the most popular mutual funds easily purchased through an insurance agent through the most highly rated insurers. Some of the fund managers include AIC, AGF, Beutal & Goodman, Putnam, John Hancock, Trimark etc. All these fund companies with their own unique investment style and opportunities for growth and/or stability. The key is to ensure your are honest with yourself and stick to your level of risk tolerance irrespectively of the economic state.

The Guaranteed Investment Option know in the banking world as a GIC “Guaranteed Investment Certificate, pays up to ½% higher than than any bank selling GIC’s. Now for those who understand the importance of title insurance. One of the largest companies in Canada introduced a phenomen in Canada a few years ago that has sold like wildfire. The secured line of credit, paying you interest on your investment, any borrowed funds just like a credit line would actually charge you interest.

To apply for this is as easy as to call in and request this secured line of credit, held by real estate you own. This secured line of credit comes with a guarantee and provides you with the protection you need to avoid title fraud.

At this time, many progressive fund managers who are value managers are the most ideal managers to do business with, so we still recommending you purchase security backed funds and hold on, we will recover from this economic downturn.

Knowledge is power.

Lina M. Demedeiros
LMD Insurance & Wealth Management Inc.

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