What are your best Investment options for 2014?
Should you use an RRSP, a TFSA or a Whole Life Investment policy to create wealth for you and your families future?
There are many ways to create wealth for your future, so lets look at some of the most common ways we help our clients create flexible and sustainable retirement futures. By using a variety of strategies to create wealth, we give our clients the flexibility they need to make smart financial choices in their retirement. You do not have to invest more than you currently do, but you may want to change the way you do it.
Here are the 3 Investment Strategies we will cover;
- Cash Value Whole Life Insurance
3 Simple ways to create wealth in 2014, which one works for you?
Maybe they all do!!!
One of Canada’s most popular Investment Vehicles has always been an RRSP. They are simple, and generally available for most Canadian Investors. They allow you to invest in the markets, mortgages, or fixed income products in most cases, and defer the taxes until you start to withdraw the money. So when you invest today, the amount you invest is tax deductible and grows in a tax deferred account, and when you start to withdraw the money, you pay back the deferred tax. If you want to view a real quick InfoGraphic explaing all the rules of an RRSP for 2013 Tax Year, check out this link.
One of the newest investment vehicles that has been introduced here in Canada is the TFSA or Tax Free Savings Account, but many have complained that it should really be called a Tax Free Investment Account, because of its flexibility in the way you are able to grow your money. You can use a variety of Investments such as the Stock Markets, Bonds, Equity Investments, and many, many more. The basics of a TFSA allow you to contribute to your account, and as the money grows and even as you take it out, it does not create any taxable events. This is a great way to save for a rainy day, or to compliment your retirement Income!
Whole Life Investment policy
One of the least known investment vehicles in Canada is the strategy of using your Life Insurance to shelter your Money. You can combine the benefits of your Life Insurance, with the benefits of a Tax Deferred and Tax Preferred investment account. Now this is not a new strategy, it is actually far older than an RRSP or a TFSA, and has been giving Canadians consistent and stable returns for over 100 years. The benefits of using a Dividend based Insurance Policy is that you are given a stable rate of return each and every year you own the policy, and unlike a traditional Market account, once you receive a dividend it is yours to keep FOREVER, and will never decrease. As well, the top 3 companies we use for this strategy have had a 100 year historical rate of return over 8%, and have never failed to provide an annual dividend. So if you need Life Insurance anyways, why not structure it so it can also provide a very handsome cash value, that increases the Insurance each and every year, and creates a strong cash value account within the policy. When you are in retirement, you simply receive the Dividend on an annual basis, as opposed to depositing it into the Life Insurance Policy, and receive a very tax advantaged income into retirement. We call it spending your Life Insurance while you are still alive. What a great thought!
Thank you very much Steffen for helping us out with our RRSP Planning, it is nice to see a different perspective on investing, then we have been used to at the bank...Jeff and Sharon R.
After years of being handed off from one advisor to another, we knew we weren't being given the treatment we deserve. Thank you so much for your attention to our needs. We are happy to be on the right track to success!Steve and Wendy P. - Burlington, ON
I would like to thank you for your continued support of both my own and even my staffs needs, your attention to detail, and simple talk has made our lives easier. I would recommend you to my closest of friends and business partners, Best Wishes.Jack M. Business owner and father of 2
More Information about Investing
Investing in today’s market can be a very confusing subject to handle. Where should you put your money? How much should you be putting away? How can I afford to invest, without compromising my Lifestyle? And what choices are best suited towards my needs? These are questions we get on a regular basis, and have devised solutions based upon those questions. By personally working with Hundreds of families over the last decade, I have found no two situations are exactly the same, but by using best of breed solutions combined with over 4 decades of family experience, we will be able to set you on the right path.