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Retirement
and Estate Planning
No one else has retirement plans exactly like yours. No one else has the same goals and
aspirations. The problem is, you know where you want to go, but you’re not sure how
your savings will get you there. After all, in today’s uncertain world, how do you
choose between so many investment products? How do you balance the volatility and growth
potential of equities, against the security but limited growth of fixed income
investments? And once you’ve made your investment decision, do you have the time and
expertise to track your portfolio, fine tuning along the way?
When you retire, you need a regular, reliable source of income to accommodate your chosen
lifestyle. Retirement income plans such as RRIFs, LIFs and LRIFs can meet this need.
If you earn a high income and have maximized your contributions to your RRSPs and company
pension plans, the retirement income that will come from these plans will likely be
insufficient for your lifestyle needs. By using a tax-exempt universal life insurance
contract, investment assets can grow within the life insurance policy on a tax-sheltered
basis. In retirement, you can use the policy as collateral for a bank loan. Loan proceeds
are tax-free. On your death, the life insurance proceeds are used to pay off the loan. You
leverage the value of the policy to fund your retirement lifestyle, on a tax-free basis.
If you have accumulated wealth in the form of income earning non-registered investments,
you pay substantial taxes annually on the investment income being earned. Here again, by
using a tax-exempt universal life insurance contract, investment assets can grow within
the life insurance policy on a tax-sheltered basis. The death benefit, including the
investment fund, can be paid after the death of the life insured and passed to your
beneficiaries tax-free.
For more information on these retirement and estate planning strategies, contact us. |
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