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PACE WEALTH ACCUMULATION STRATEGIES

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Presentation on theme: "PACE WEALTH ACCUMULATION STRATEGIES"— Presentation transcript:

1 PACE WEALTH ACCUMULATION STRATEGIES

2 WEALTH CREATION Why do people build wealth through investment portfolios, real estate, savings or other means? What MOTIVATES them?

3 MOTIVATORS! Security Lifestyle Retirement income Early "bail out"
Create estate for heirs

4 MOTIVATORS! Health Flexibility Diversification Hate paying taxes

5 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.

6 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?

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 achieved May take income (or leverage) in future

9 WEALTH ENHANCER EXAMPLE Male 42, N/S
Has investable assets of $25,000 annually for 10 years Is 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 $142,577 10 $355,085 $339,813 15 $482,573 $482,226 20 $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 ENHANCER If greatest savings is most important and life insurance is secondary … Flex 1 With Saving Maximizer is the best solution


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