Investments
Insurance-based investment solutions coordinated with the rest of your financial picture.
How Investments Work at Clearstone
Investing isn't just about picking a product — it's about making sure your investment strategy fits your goals, your risk tolerance, your tax situation, your insurance coverage, and your mortgage structure. At Clearstone, investments are coordinated alongside everything else, so your money is working in the same direction as the rest of your financial decisions.
All investment solutions at Clearstone are delivered through segregated funds via IDC Worldsource Insurance Network Inc. Segregated funds are insurance-based investment products that offer features not available through traditional mutual funds — including potential creditor protection, estate-planning benefits, maturity guarantees, and death benefit guarantees.
What Are Segregated Funds?
Segregated funds are investment products issued by insurance companies. Like mutual funds, they hold diversified portfolios of stocks, bonds, and other assets managed by professional fund managers. Unlike mutual funds, they are insurance contracts — which gives them unique features that can matter in your broader financial picture.
Maturity Guarantees
Segregated funds guarantee a percentage of your original investment (typically 75% or 100%) at maturity — a floor under your invested capital that mutual funds cannot offer.
Potential Creditor Protection
Because segregated funds are insurance contracts with named beneficiaries, they may be protected from creditors in certain circumstances — a meaningful advantage for business owners and professionals.
Death Benefit Guarantees
If you pass away before maturity, your beneficiaries receive at least the guaranteed percentage of your deposits — regardless of market performance at the time.
Estate-Planning Benefits
Proceeds pass directly to named beneficiaries outside of probate — potentially faster, more private, and with lower estate administration costs than assets that flow through a will.
Named Beneficiaries
You designate who receives the proceeds directly — bypassing the estate and avoiding delays, legal fees, and the public probate process.
Professional Management
Underlying portfolios are managed by professional fund managers across a range of asset classes, risk profiles, and investment mandates — the same quality of management available through mutual funds.
Account Types Available
Segregated fund investments can be held in a range of registered and non-registered account types, depending on your goals and tax situation.
RRSP
Registered Retirement Savings Plan — tax-deductible contributions that grow tax-deferred until withdrawal. The core retirement savings vehicle for most Canadians.
FHSA
First Home Savings Account — tax-deductible contributions and tax-free withdrawals for qualifying first home purchases. Combines the best features of RRSPs and TFSAs for homebuyers.
RRIF
Registered Retirement Income Fund — converts RRSP savings into a stream of retirement income with required minimum annual withdrawals.
TFSA
Tax-Free Savings Account — contributions are not tax-deductible, but all growth and withdrawals are completely tax-free. Flexible for any savings goal.
RDSP
Registered Disability Savings Plan — long-term savings for individuals eligible for the Disability Tax Credit, with government matching grants and bonds.
Non-Registered
Investment accounts outside of registered plans — no contribution limits, flexible access, and essential for strategies like the Smith Manoeuvre™ where the investment must be held in a non-registered account.
How Investments Connect to Everything Else
At Clearstone, your investments don't live in a silo. They're coordinated with your insurance, your mortgage, and your overall strategy.
Insurance Alignment
Your investment risk profile affects your insurance needs. If you're investing aggressively, your life and disability coverage should reflect that. Clearstone coordinates both.
Mortgage Integration
Your mortgage structure affects your investment capacity — and for Smith Manoeuvre™ clients, the mortgage IS the investment strategy. Clearstone manages both sides.
Tax Coordination
Which account type, how much to contribute, and when to withdraw — these decisions have tax implications that connect to your income, your mortgage interest, and your overall plan. Clearstone keeps them aligned.
Investments and the Smith Manoeuvreâ„¢
For clients implementing the Smith Manoeuvre™, the non-registered segregated fund investment is a core component of the strategy. The readvanced funds from your mortgage are invested in a non-registered portfolio — and the interest on those borrowed funds may be tax-deductible under established Canadian tax rules, depending on the use of funds and proper tracing. Clearstone coordinates the mortgage structure, the investment selection, the insurance alignment, and the ongoing documentation — all under one process.
Leverage magnifies both gains and losses, and deductibility is not guaranteed.
Investment solutions are delivered through segregated funds via IDC Worldsource Insurance Network Inc. Nicholas Gaudet is licensed as a Life Insurance Agent in Prince Edward Island, Nova Scotia, and New Brunswick. Insurance complaints: OLHI, 1-888-295-8112, olhi.ca. All mentions and discussions of investments, investment accounts, or investment strategy are not related to the sale of mutual funds.
Let's Talk About Your Investment Goals
Whether you're just starting to invest, reviewing what you already have, or exploring how your investments fit into a bigger strategy — a conversation is the right first step.
By appointment only. Virtual meetings available across Atlantic Canada. In-person meetings available upon request in Charlottetown.