5 WEALTH CREATIONStarting 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.
6 WEALTH CREATIONDoes 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?
7 WEALTH CONVERSION Strategic repositioning of PART of portfolio. Use U/L to enhance the value of the estate!
8 WEALTH ENHANCER Client has discretionary funds for investment purposes Wants the greatest cash buildup that can be achievedMay take income (or leverage) in future
9 WEALTH ENHANCER EXAMPLE Male 42, N/S Has investable assets of $25,000 annually for 10 yearsIs in top tax bracket
10 WEALTH ENHANCER INVESTMENT OPTIONS Investment portfolio (index funds, mutual funds, seg funds, individual stocks)Life insurance – use Saving Maximizer for greatest wealth accumulation
11 WEALTH ENHANCER INVESTMENT OPTIONS Indexed Fund PACE *Gross yield = 9% *9% yield*MER = 1% *3% MER(net 8%) (net 6%)*CGT paid every *1.75%5 years bonus
12 WEALTH ENHANCER EQUITY COMPARISON Year FUNDS* PACE A.F. $150,500 $142,57710 $355,085 $339,81315 $482,573 $482,22620 $655,834 $684,223$1,211, $1,354,238*net values illustrated
13 WEALTH ENHANCER ESTATE COMPARISON Year FUNDS* PACE D.B. $150, $938,577$355, $1,135,813$482, $1,090,226$655, $1,189,223$1,211, $1,857,238*net values illustrated
14 WEALTH ENHANCERIf greatest savings is most important and life insurance is secondary …Flex 1With Saving Maximizeris the best solution