5WEALTH 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.
6WEALTH 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?
7WEALTH CONVERSION Strategic repositioning of PART of portfolio. Use U/L to enhance the value of the estate!
8WEALTH ENHANCER Client has discretionary funds for investment purposes Wants the greatest cash buildup that can be achievedMay take income (or leverage) in future
9WEALTH ENHANCER EXAMPLE Male 42, N/S Has investable assets of $25,000 annually for 10 yearsIs in top tax bracket
10WEALTH ENHANCER INVESTMENT OPTIONS Investment portfolio (index funds, mutual funds, seg funds, individual stocks)Life insurance – use Saving Maximizer for greatest wealth accumulation
11WEALTH 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
12WEALTH 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
13WEALTH 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
14WEALTH ENHANCERIf greatest savings is most important and life insurance is secondary …Flex 1With Saving Maximizeris the best solution