WEALTH CREATION Why do people build wealth through investment portfolios, real estate, savings or other means? What MOTIVATES them?
MOTIVATORS! Security Lifestyle Retirement income Early "bail out" Create estate for heirs
MOTIVATORS! Health Flexibility Diversification Hate paying taxes
WEALTH CREATION Starting out – very few assets; life insurance is vital to create an estate for family income needs. As you get older – you build up assets (house, cottage, RRSP's, investments, pension). Life insurance takes on new meaning.
WEALTH CREATION Does portfolio of assets contain any discretionary capital or provide any discretionary income? I.E. not earmarked for a specific purpose, other than savings. If so, are you gaining the greatest advantage with those funds?
WEALTH CONVERSION Strategic repositioning of PART of portfolio. Use U/L to enhance the value of the estate!
WEALTH ENHANCER Client has discretionary funds for investment purposes Wants the greatest cash buildup that can be achieved May take income (or leverage) in future
WEALTH ENHANCER EXAMPLE Male 42, N/S Has investable assets of $25,000 annually for 10 years Is in top tax bracket
WEALTH ENHANCER INVESTMENT OPTIONS Investment portfolio (index funds, mutual funds, seg funds, individual stocks) Life insurance – use Saving Maximizer for greatest wealth accumulation
WEALTH ENHANCER INVESTMENT OPTIONS Indexed FundPACE *Gross yield = 9% *9% yield *MER = 1% *3% MER (net 8%) (net 6%) *CGT paid every *1.75% 5 years bonus