The principal reason for correctly spelling ‘principal’ is that those individuals (and I’m not sure if they are in the minority or not) went to school where the principal had many cherished principles – principal among them was gooder grammar and korrect speling.

Or, there is an accepted principle that to reduce your mortgage balance quickly, divert a principal portion of discretionary income towards the principle.

http://www.grammarmudge.cityslide.com/articles/article/992333/8562.htm

Principle is a noun which means a general truth or assumption.

FT used the correct spelling. So many people spell it this way because they are right!

“The benefits are not worth the added expense. There hasn’t been a 10 year period in the history of the NA equity markets where the protection criteria would prove to be valuable.”

Welcome to the first time in North American history where the protection criteria was valuable.

Frugal Trader

Manulife has the 75 series which generally has MERs within the 2-3 range. They are usually not more than 30 bps higher than a mutual fund.

If you need some protection, it is not such an extortionate fee.

Thanks,
Carl

Index funds provide an MER of 1% and no fees or comissions with all the growth potential.

If you value creditor protection above all, you’re a loser anyways.

[...] These are basically mutual funds which are offered by insurance companies. The funds are insurance products so they have the advantages of creditor proofing (creditors cannot attack insurance contracts in most cases but there are exemptions), estate planning (no probate is paid by the estate) and principal protection (if the funds are held for a certain period of time). Million Dollar Journey gives a more detailed summary on segregated funds. [...]

[...] Most of the investments are “segregated funds”, which are insurance mutual funds that charge .5-1% higher MER’s each [...]

I’m told by a revenue Canada agent (who seemed to know about as much as I did) reading line 221 in the tax guide which says “However, if the only earnings your investment can produce are capital gains, you cannot claim the interest you paid.

Sure pray for a good answer here! (and thanks!)

[...] Further readings: – TD Canada Trust Market Growth GIC. – How Segregated Funds Protect Your Investments (CI) – How segregated funds work (Million Dollar Journey) [...]

The point of the second level beneficiary was that if you and your spouse are hit by a bus at the same time, there would be a beneficiary (IE your kids) outside of probate. TD had no provision for this. Our wills are clear on this but in order to keep this outside of the estate you would need this provision.

Sorry for the vagueness of the first post, and thanks for the replies.

It doesn’t apply to non-RRSP. It’s only RRSP accounts where you can name a beneficiary. I would assume that non-rrsp $$ goes through probate.

FT, lock-in your gains usually do not make the fund more expensive. The way it works is that it reset your guarantee for another 10 years. For example, if you purchase a fund for $10,000 this year, three years from now, the market price of the fund grows to $12,000. If you decide to lock-in the gain, the $12,000 principal protection applies to 13 years from now. As you can see, you don’t really gain any extra protection by locking in your gain, so no extra fee should be charged.

EZ