SMART TAX SAVINGSMART TAX SAVINGSTRATEGYSTRATEGY
Do you have tax deduction need?
What are the mechanism being used?
Are you contributing to RRSP?
BENEFITS OF AN RRSP
Contributing to RRSP gets a tax deduction and tax deferral.
Can be used for first time home buyers plan and lifelong learning.
DISADVANTAGES OF AN RRSP
100% of Principal + Earnings are taxable
Affects your OAS & GIS and other income tested benefits.
Even at death, tax need to be paid.
Critical Illness –
Disability –
Long-term Care –
If you retire –
If you die –
Taxed 100%
SMART TAX SAVING STRATEGY
‘YES’100% Tax Free
With
Can you take money from your RRSP without paying tax if you have --
‘NO’
‘NO’
‘NO’
‘NO’
143,510
147,000
404,020
3,490
1,512,267
1,472,775
2,057,111
11,600,73611,500,736
$ 1,000,000
143,510
147,000
404,020
3,490
1,512,267
1,472,775
2,057,111
11,600,73611,500,736
COMPARISON
CostDeath
BenefitCost
FundValue
Death Benefit
CostFundValue
Death Benefit
41 - 50 5,400 1,000,000 0 1,000,000 227,305 1,133,796
51 - 60 34,300 1,000,000 0 1,000,000 621,624 1,010,039
61 - 70 85,800 1,000,000 0 1,000,000 1,512,267 2,057,111
71 - 80 267,800 1,000,000 0 1,000,000 2,650,772 3,088,182
81 - 85 0 1,000,000 3,703,597 3,803,597
85 - 90 0 1,000,000 5,403,420 5,503,420
91 - 95 0 1,000,000 7,883,103 7,983,103
96 - 100 0 1,000,000 11,500,736 11,600,736
Total 393,300 285,600 220,004
Policy Terminates 0
InsuredAge
TERM UNIVERSAL LIFE ILS
4,760
X
60 Years
Cos
t + A
nnua
l Pol
icy
Loan
Inte
rest
- 46
.41%
of P
olic
y Lo
an In
tere
st3,
490
+ 40
4,02
0 - 4
6.41
% (2
16,5
14)
Comparison At Age 100
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
11,000,000
12,000,000
Term Universal Life ILS
Cost
Fund Value
Death Benefit
$1
1,5
00
,73
6
$ 1
1,6
00
,73
6
$ 2
20
,00
4
$ 0$
28
5,6
00
$ 1
,00
0,0
00
$ 0
$ 3
93
,30
0
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
11,000,000
12,000,000
41 - 50 51 - 60 61 - 70 71 - 80 81 - 85 86 - 90 91 - 95 96 - 100
Total Cost
Fund Value
Death Benefit
Insured Age
FUND GROWTH
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
11,000,000
12,000,000
86 - 90 91 - 95 96 - 100
Total Cost
Fund Value
Death Benefit
GROWTH BETWEEN AGE 86 - 100
$ 5
,40
3,4
20
$ 2
20
,00
4
$ 7
,88
3,1
03
$ 7
,98
3,1
03
$ 2
20
,00
4
$ 1
1,5
00
,73
6
$ 1
1,6
00
,73
6
$ 2
20
,00
4
$ 5
,50
3,4
20
QUESTIONS ? ? ?
THANK YOU