Which Is Better Mutual Funds Or Annuities? 
In Canada , variable annuities are referred to as segregated funds or seg funds . They are similar to mutual funds , but there are differences . Which one is better depends on your objectives . Both offer diversified investment opportunities to build wealth . In addition , segregated fund policies provide important wealth protection , business and estate planning solutions . The key differences : Guarantees on your principal - The money you invest in a seg fund is guaranteed up to 100 % upon death or maturity . Locking-in market gains - Some seg funds allow you to lock in market gains -LRB- `` resets '' -RRB- that can increase the amount payable at death or maturity . Bypass probate - Seg fund death benefit proceeds are paid directly to a named beneficiary instead of your estate . This bypasses probate , a public process that can be both costly and lengthy . Creditor protection - By designating a qualified beneficiary on your seg fund policy , your investments maybe exempt from seizure by creditors in the event of unforeseen bankruptcy or legal proceedings . Segregated funds are well suited to : Business owners looking for creditor protection succession planning or emergency fund solution . Pre-retirees looking for wealth accumulation but want to limit potential losses with maturity and death guarantees . Pre-retirees and retirees looking to preserve their legacy and transfer their estate in the most private , timely and cost-effective way . If you have further questions . or feel I could be of assistance , please do not hesitate to contact me . There is addition information available at www.ProtectandGrow.ca 