Save
taxes with the Investment Optimizer
Author:
Ivon T. Hughes
Investors
contributing the maximum limit to their RRSPs want to accumulate non-registered
money in the most tax effective manner allowed in the Income Tax Act.
The
problem with non-registered funds is that you have to pay taxes on the investment
growth. This effectively decreases the total funds you have to invest. Over
the lifetime of the investment, the aggregate tax loss will be many thousands
of dollars. The cumulative taxes paid on $100,000 of non-registered savings
invested into an equity mutual fund would amount to $165,306 over 30 years!
The
Investment Optimizer solves this problem using eUL - a universal life plan.
This strategy minimizes the cost of term insurance and maximizes your investments
in an eUL plan where the investment growth is tax-deferred. This strategy
uses as much of your deposits as the Income Tax Act allows for wealth accumulation.
In
most cases, your cumulative cost for insurance over the long term will be
less than the taxes you would otherwise lose on a non-registered investment.
In other words, the cost of insurance is significantly less than the tax.
We
want to help you save tax! If you have not taken a serious look at using
universal life to reduce your taxes in the last five years, I'm sure you
will be intrigued. Contact us for more information.
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