Testimonials

Mr. Ivon Hughes has provided me with outstanding service and counsel in helping to identify and obtain the appropriate type and amount of life insurance to suit my financial needs and family circumstances.
- T. Finkel, ON

I would just like to take this moment thank you for the exceptional service you have provided me and my husband. You have proven to be efficient and always available to deal with issues or answer question. Thank you once again.
- V. & R. Davis, ON

I can state that my association with Mr. Hughes and his company, Hughes Trustco, has been most satisfactory both as a supplier of services and as a client.
- J. Clark, PQ

I am pleased to say that 15 years later, my insurance needs are still met with the same interest and attention as they were in 1989!
- L. Riddell, PQ

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UNIVERSAL LIFE INSURANCE ARTICLES

Supplement Your Retirement Income (and Save Tax) Using Universal Life

Author: Ivon T. Hughes

Chances are, when you think about saving for retirement you concentrate on accumulating registered assets in the years leading up to retirement. But what about the years after retirement?

Many people do not realize that income drawn from a registered plan that exceeds the government prescribed minimum is subject to annual taxation. How can you continue to defer taxes on your savings during your retirement years?

There is a solution, which I call the Retirement Income Maximizer, and it will appeal to you if you generally contribute the maximum to your RRSP and still have a sizable sum of money to invest for the long term.

The way it works is simple. You invest your non-registered assets into a properly structured Universal Life (UL) policy. Unlike regular non-registered investments, investments in a Universal Life plan are tax-deferred (just like an RRSP), as long as they are held in the plan.

Once you retire, instead of using your RRIF to provide the bulk of your retirement income, you only withdraw the tax-free minimum. To make up the shortfall you then access the money built up in the UL policy using a loan or series of loans using the policy as collateral. Unlike income from a RRIF that exceeds the government-prescribed minimum, income from a bank loan is not subject to taxation. Many banks will loan up to 90% of the Cash Surrender Value of your policy and will not require repayment until your death, upon which the loan is repaid using the death benefit of the UL policy. As a further benefit, any death benefit remaining after the loan is paid goes to your heirs.

To see how well the Retirement Income Maximizer will work for your specific situation, visit the Universal Life - Retirement Income Maximizer section of our website or give us a call toll free at 1-877-842-3863.

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Ivon T. Hughes, The Hughes Trustco Group Ltd.
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Tel: (514) 842-9001 Email: [email protected] Web: http://www.trustco.ca
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