FOR DEALER/ADVISOR USE ONLY| 1 EMPIRE LIFE INVESTMENTS READY…SET…GO! 2014 RRSP Season.

FOR DEALER/ADVISOR USE ONLY| 1

EMPIRE LIFE INVESTMENTS

READY…SET…GO!

2014 RRSP Season


AGENDA

READY…Why Partner With Empire Life Investments?Investment Team and Approach

…SET…Our Products and Services

…GO!RRSP Season SolutionsRRSP Season Opportunities


READY…WHY PARTNER WITH EMPIRE LIFE INVESTMENTS?


WHY PARTNER WITH EMPIRE LIFE INVESTMENTS?Our parent’s* long history

1923

1956Controlling interest held by one family since 1956

The Empire Life Insurance Company Founded

50 YearsManaging segregated investments for Canadians

*Empire Life Investments Inc. is a wholly owned subsidiary of The Empire Life Insurance Company


WHY PARTNER WITH EMPIRE LIFE INVESTMENTS?A committed parent, with strength and stability

265%

Rated A(Excellent) A.M Best Company Rating as of June 2013

MCCSR Ratio as of Sept 30, 2013

Top 10Life Insurance Companies in Canada*

*Source: Office of the Superintendent of Financial Institutions (OFSI), and company annual reports – based on generaland segregated fund assets


READY…INVESTMENT TEAM & APPROACH


Philosophy• We believe that we can outperform by focusing on

high-quality, attractively valued securities over the long term

Style • Value oriented

Approach

• Bottom-up security selection• Fundamental analysis• Team oriented• Manage downside risks• Long term (3 to 5 years)• Disciplined

INVESTMENT TEAM & APPROACHOur philosophy


Data Source: Bloomberg, MSCI (November 1987 – November 2013)

INVESTMENT TEAM & APPROACHValue investing at work

Growth of $10,000


…SET…OUR PRODUCTS & SERVICES


Mutual Funds

Annuities

Guaranteed Withdrawal

Benefit

Guaranteed Interest Options

Segregated Funds

Solutions offered by Empire Life and Empire Life Investments

INVESTMENT SOLUTIONS


OUR PRODUCTS & SERVICESClass and Elite: Segregated Funds

ChoiceFull range of asset classesIncludes Portfolio Funds, our managed programFunds with up to 100% equity exposure

FlexibilityTwo levels of guarantees: 75%/100% or 100%/100%*

Growth2 client-initiated resets per year take advantage of higher market values*

Competitive and inclusive MERsEasy for clients to understandNo extra fees for resets

*There must be at least 10 years to the Maturity Date of the policy, 15 years if 100% MBG. No resets are permitted after December 31st of the year the Annuitant turns 80 years old.


Consolidated investment programHold segregated funds and interest investments in one policy

Segregated fundsGuaranteed Interest OptionsTreasury Interest Options

OUR PRODUCTS & SERVICESElite and Elite XL Investment Programs


OUR PRODUCTS & SERVICESOur MERs save your clients money

Using a 4% rate of return over 20 years that could mean

over $7,500 in savings!

On average, our funds’ MERs were more than 7% lower than MERs of their peers*

*Source: Empire Life and Morningstar Direct, June 2013. MERs are category median and Class A Empire Life segregated funds. For illustration purposes only. Illustration assumes a 4% rate of return.


5% annual Income Base BonusBuilds income potential.1

Client-friendlyAutomatic Income Reset increases automatically to next LWA tier.Retirement Income Privileges allow stop and start income payments.Excess Withdrawal Alert safeguards clients’ guaranteed income.Competitive fees.

Potential for higher growth3 of the 12 investment options offering 80% equity exposure.

OUR PRODUCTS & SERVICESClass Plus 2: Guaranteed Retirement Income For LifeTM

1 Income Base Bonus is a notional amount added to the Income Base at the end of each calendar year if no withdrawals are made for that year.


OUR PRODUCTS & SERVICESMutual Funds*

Simplicity10 mutual fundsIncludes Emblem Portfolios, our managed programFunds with up to 100% equity exposure

FlexibilityAvailable in series T, 6% and 8% tax-efficient cash flow options

Competitive MERsCompetitive management fees and advisor compensation

*Mutual funds are offered by Empire Life Investments Inc.


OUR PRODUCTS & SERVICESEmpire for Life™ Loyalty Program

Eligibility

Empire Life Mutual Funds, Empire Life Class or Class Plus 2 Segregated Funds

Loyalty pays

A management fee distribution equal to 5% on December 31st of the year in which the investor reaches the 10-year anniversary and every year thereafter.*

*Class/Class Plus 2 segregated funds and Elite/Elite XL contracts are issued by The Empire Life Insurance Company. The Empire for LifeTM Loyalty Program management fee re-imbursement is distributed in the form of additional units. Investors must own the units on the distribution date in order to receive the management fee re-imbursement.


…GO!RRSP SOLUTIONS


• Class Plus 2 offers 5% annual Income Base Bonus1 every year for life, which builds client’s income potential.

• Income Base Bonus potentially increases the Income Base by 75% in 15 years.

WHY CLASS PLUS 2 THIS RRSP SEASON?Build their income potential

1 Income Base Bonus is a notional amount added to the Income Base at the end of each calendar year if no withdrawals are made for that year.


43800

2 people X 3 meals X 365 days X 20 years

$438,000

Investor Needs and Challenges


Why your clients need income

• The peak of the baby boom is age 50

• With the annual 5% Income Base Bonus, a one-time investment would increase by 75% in 15 years.

• $250,286 deposit is increased to $438,000 for the purpose of guaranteeing income for life.

As you age, income is generally preferred relative to growth. Use Empire Class Plus 2 for all your income needs


CLASS PLUS 2 MARKETING SUPPORT


…GO!RRSP SEASON OPPORTUNITIES


RRSP SEASON OPPORTUNITIESRRSP loan programs

• An RRSP loan is a great way to help clients to contribute the maximum

• Using a loan can mean the difference between retiring and retiring comfortably

• If your client is expecting a tax refund, they can defer their first loan payment up to six months1

The above example is for illustrative purposes only.¹ Although payments may be deferred, interest is calculated from the date of funding.


TFSA RRSP

2014 Annual Maximum $5,50018% of Previous Years Earned

Income(up to $23,820)*

ContributionsNot tax

deductibleTax deductible

Withdrawals Tax–free Taxable

Government Income Benefits Eligibility unaffected Affects eligibility

Unused Contribution Room Carried forward Carried forward

Taxes on Earnings / Growth Tax-free Deferred

*RRSP withdrawals used for the HBP (Home Buyers Program) must be re-contributed within 15 years; the LLP (Lifelong Learning Program) must be re-contributed within 10 years.

RRSP SEASON OPPORTUNITIESAdd TFSA to the discussion



Maximize your meeting time. Discuss the benefits of additional tax sheltering through TFSAs when you discuss RRSPs.

Example: A client opens a TFSA, contributing $31,000 (maximum unused 2014 contribution limit) today and $5,500 annually for 10 years. Assuming a growth rate of 6% and 50 clients, you could increase the value of your book by over $5.7 million in 10 years.*

*For illustrative purposes only. Assuming all 50 clients never previously contributed to a TFSA



*Morningstar Research Inc.,: 10-year rate of returns average ending November 30, 2013; S&P/TSX Composite Total Return (8.27%), 50% S&P/TSXComposite Total Return / 50% DEX Universe Bond (5.37%), 5-Year GIC (2.42%); Canadian Treasury Bill (2.09%).

Many TFSAs are currently invested in savings or fixed-term deposits. We evaluate how a 10-year return in those investments compares to an investment in the market:

Example: $31,000 initial contribution, $5,500 annual contribution, 10 year period*

$155,998.

$102,252.

$140,449.

$99,859.


RRSP SEASON OPPORTUNITIESTFSA Marketing Support

Mutual FundsSegregated Funds


RRSP SEASON OPPORTUNITIESDCA never goes out of style

• Dollar cost averaging is a disciplined approach to investing

• Buy more units when prices are low and fewer when prices are high

• Avoids market timing and risk of lump sum investment

Discuss a PAD plan for 2014

Assuming a starting price of $10 per unit, the table below shows how dollar cost averaging can help smooth the effects of market fluctuation.


37

$10,000

$7,500

$14,693

$11,020

$-

$5,000

$10,000

$15,000

$20,000

After Reset: Death Benefit increased by $4,693 Maturity Benefit increased by $3,520

For illustration purposes only. Note that resetting the 75/100 series Maturity Guarantee extends the maturity date by 10 years from the date of reset, and by 15 years for the 100/100 series.

1. Two client-initiated resets a year2. No extra fee

Death Benefit Guarantee Maturity Benefit Guarantee Death Benefit Guarantee Maturity Benefit Guarantee

RRSP SEASON OPPORTUNITIESHave the reset discussion


RRSP SEASON OPPORTUNITIESNew: Lifetime Withdrawal Amounts & Life Income Funds

Option to access to full LWA & Life Income Funds

•Applicable if LWA exceeds legislated LIF maximum, which disallows withdrawal of full LWA.

•Strict requirements must be met to qualify for this election

•It is irrevocable

•Class Plus/Class Plus 2 features remain intact.


RRSP SEASON OPPORTUNITIESNew: Annuity Settlement Option

SituationInsurance products give peace-of-mind associated with the proceedsSudden transfer of wealth may not be desirable for some beneficiaries

SolutionGradual wealth transfer through innovative combination of payment and annuity Clients have flexibility and control over how death benefit proceeds paid out

How it worksAll Empire Life insurance and investment contracts-inforce and new applicationsChoice of either a) 100% annuity option OR b) Partial upfront payment with the balance paid via Life or Term Certain annuity

BenefitsMaintain influence with family and retain assetsEstate planning opportunity - include in sales process and annual reviewsClient peace of mind


RRSP SEASON OPPORTUNITIESDiscussion Points

1.Tax Planning

Take advantage of various tax-efficient savings vehicles.

Vehicle Details

RRSP 2013 contribution limit is $23,820Deadline: March 3, 2014.

TFSA 2014 contribution limit is $5,500; cumulative contribution limit is $31,000



2. Guaranteed Income

Do your clients have a reliable retirement income source?

• Possible solutions may be GWBs (Class Plus 2) or annuities (Empire Life Immediate Annuities), which provide guaranteed retirement income.

• Check out Class Plus 2-Guaranteed Retirement Income for LifeTM and Empire Life Immediate Annuities



3. Asset Allocation/Portfolio Rebalancing

• Asset classes perform differently over time so a portfolio can drift from its target asset mix.

• Does the current asset allocation reflect your client’s time horizon, risk tolerance, and investment goals?

• A potential solution is a Portfolio program, which rebalances the asset mix to ensure it reflects the investor profile.


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www.empirelifeinvestments.ca


DisclaimerEmpire Life Investments Inc. is the Manager of the Empire Life Mutual Funds (the “Funds”) and is the Portfolio Manager of the Empire Life segregated funds. Empire Life Investments is a wholly-owned subsidiary of The Empire Life Insurance Company. The units of the Funds are available only in those jurisdictions where they may be lawfully offered for sale and therein only by persons permitted to sell such units. Nothing contained herein shall constitute, or shall be deemed to constitute, investment advice or a recommendation to buy or sell a specific security, by the Portfolios, Funds or their manager, Empire Life InvestmentsCommissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.

The information in this presentation is for general information purposes only and is not to be construed as providing legal, tax, financial or professional advice. Empire Life Investments assumes no responsibility for any reliance made on or misuse or omissions of the information contained in this presentation. Please seek professional advice before making any decision

Past performance is not a guarantee of future performance. Empire Class Segregated Funds, Class Plus 2 and Elite/Elite XL Investment Program contracts are issued by The Empire Life Insurance Company. A description of the key features of the individual variable insurance contract is contained in the Information Folder for the product being considered. Any amount that is allocated to a Segregated Fund is invested at the risk of the contract owner and may increase or decrease in value.

®/™ Trademarks of The Empire Life Insurance Company – used under license

FOR DEALER/ADVISOR USE ONLY| 1 EMPIRE LIFE INVESTMENTS READY…SET…GO! 2014 RRSP Season.

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Transcript of FOR DEALER/ADVISOR USE ONLY| 1 EMPIRE LIFE INVESTMENTS READY…SET…GO! 2014 RRSP Season.