smart tax saving 1000000
TRANSCRIPT
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