The Canada Learning Bond is a program setup by the government. The program allows people to claim $500 in free cash to go towards a child's education. Although this money is available for all families, 80% of people who qualify never apply. We would really like you to spread the word for anyone who earns less than $40,000 a year for a family. This program is $500 free cash for anyone who has a child that is under the age of 7, born since 2003 for this year.
Children can also qualify for the national tax benefit, which is a supplement to the baby bonus. All they need to do is fill out the forms to get the benefit. We have the forms available in our office at Smart Choice Life. The government will even put in extra money. There is another education savings grant from another program which matches 20%, for up to $2500. All that has to be done is for forms to be filled out.
We can help this for you. We open the accounts, fill out the forms for you, and send them in. It is simple, easy to do, and takes minutes. It's a simple one page form, check mark, and signature. We look after everything for you.
If you have an infant and deposit every year until that child is 17, you would end up with $3000 to help them start with their education. This represents a significant boost, and makes a big difference in a child's life. This could be a turning point in their lives, because it may affect their decision to go to University, College, or seek further secondary education.
Their decision if they have $3,000 extra to go to University could be significantly effected. Visit our website or give us a call at 1-800-471-0411.
Tuesday, June 28, 2011
Thursday, June 2, 2011
What does it cost to leave a $50,000 legacy?
Jake, age 65 with a $40,000 income could leave $50,000 to a charity, non-profit sport organization, church or other organization that qualifies with CRA as a charitable donation, for only $1,046 a year.
How is this possible?
Jake has a $40,000 income and a marginal tax rate of 27.5%, but when he gives to a charity he gets a 43.3% tax credit on everything he donates over $200 up to 75% of his income. How is that possible? It is possible because a tax credit is more valuable than a tax deduction.
So how does he turn $1,046 a year into $50,000?
Jake buys a $50,000 life insurance policy. He makes a charity the beneficiary and the owner of the policy. He pays the premiums of $1,786 a year. The charity issues him a receipt for his premiums which triggers tax credits of $740. That’s how it costs him only $1,046 a year to leave $50,000.
Sally, age 50 could leave $100,000 for $486 a year after calculating tax credits.
How is this possible?
Jake has a $40,000 income and a marginal tax rate of 27.5%, but when he gives to a charity he gets a 43.3% tax credit on everything he donates over $200 up to 75% of his income. How is that possible? It is possible because a tax credit is more valuable than a tax deduction.
So how does he turn $1,046 a year into $50,000?
Jake buys a $50,000 life insurance policy. He makes a charity the beneficiary and the owner of the policy. He pays the premiums of $1,786 a year. The charity issues him a receipt for his premiums which triggers tax credits of $740. That’s how it costs him only $1,046 a year to leave $50,000.
Sally, age 50 could leave $100,000 for $486 a year after calculating tax credits.
Wednesday, June 1, 2011
Recession Proof Investments
To identify with real life experience
Printed with permission of my clients Roberta and Marty. Here are their comments:
In the summer of 2007 and early in 2008 Gordon warned us several times that a market crash was coming in 2008 or 2009 and wanted us to invest in these new Guaranteed Minimum Withdrawal Balance segregated funds. He said they would help us avoid the major cost of a market downturn.
We were dealing with other advisers and wanted to think things over before we shifted our business to Gordon. By the time we got our funds moved into these new GMWB products the crash had actually taken place. Ouch! We wish we had acted sooner.
We were dealing with advisers at two different banks and a mutual fund company before we shifted to the GMWB funds. What we find hard to believe is why didn't any of those advisers see this coming?
In any event these GMWB funds guarantee a 5% annual increase to your retirement portfolio. In 2010 our funds grew well over the 5% so our adviser was able to manually reset our funds into a new contract. Now your guarantee is over 6% annually if you calculate back to when we first invested. The reason for the higher rate is not a change in the GMWB product, rather it is due to the reset to the higher amount arranged by our adviser. Where else can you get a 6% guarantee annual increase in your retirement portfolio?
That ends their comments.
There is no better time to get involved with Guaranteed Minimum Withdrawal Balance (GMWB) funds that today. They work to save your investment in down markets and are also a great tool to increase wealth during rising markets.
Another client, Bob, did move before the downturn for safety sake, but stayed invested in equities. His funds dropped nearly 20% in 2008 but his Withdrawal Balance increased by 5% in 2008, 2009, and 2010. He wants to retire this year. Even though his investments are only back to the value they were in early 2008 he will get 5% of the higher amount guaranteed for life. Let's look at actual figures:
June 2008 funds $100,000 which dropped to $80,000 in the fall of 2008. They are now back to $100,000 three years later. That is the way equity funds work. But Bob's withdrawal balance has grown to $115,000 (5% per year) so he is now guaranteed a minimum of $5,575 per year for the rest of his life even if his funds run out his income will never run out.
Bob is happy, as he knows if markets rise enough his income will also rise. Every increase he gets will be guaranteed for life. It takes the financial worries out of retirement and the fear of outliving his money is gone.
Printed with permission of my clients Roberta and Marty. Here are their comments:
In the summer of 2007 and early in 2008 Gordon warned us several times that a market crash was coming in 2008 or 2009 and wanted us to invest in these new Guaranteed Minimum Withdrawal Balance segregated funds. He said they would help us avoid the major cost of a market downturn.
We were dealing with other advisers and wanted to think things over before we shifted our business to Gordon. By the time we got our funds moved into these new GMWB products the crash had actually taken place. Ouch! We wish we had acted sooner.
We were dealing with advisers at two different banks and a mutual fund company before we shifted to the GMWB funds. What we find hard to believe is why didn't any of those advisers see this coming?
In any event these GMWB funds guarantee a 5% annual increase to your retirement portfolio. In 2010 our funds grew well over the 5% so our adviser was able to manually reset our funds into a new contract. Now your guarantee is over 6% annually if you calculate back to when we first invested. The reason for the higher rate is not a change in the GMWB product, rather it is due to the reset to the higher amount arranged by our adviser. Where else can you get a 6% guarantee annual increase in your retirement portfolio?
That ends their comments.
There is no better time to get involved with Guaranteed Minimum Withdrawal Balance (GMWB) funds that today. They work to save your investment in down markets and are also a great tool to increase wealth during rising markets.
Another client, Bob, did move before the downturn for safety sake, but stayed invested in equities. His funds dropped nearly 20% in 2008 but his Withdrawal Balance increased by 5% in 2008, 2009, and 2010. He wants to retire this year. Even though his investments are only back to the value they were in early 2008 he will get 5% of the higher amount guaranteed for life. Let's look at actual figures:
June 2008 funds $100,000 which dropped to $80,000 in the fall of 2008. They are now back to $100,000 three years later. That is the way equity funds work. But Bob's withdrawal balance has grown to $115,000 (5% per year) so he is now guaranteed a minimum of $5,575 per year for the rest of his life even if his funds run out his income will never run out.
Bob is happy, as he knows if markets rise enough his income will also rise. Every increase he gets will be guaranteed for life. It takes the financial worries out of retirement and the fear of outliving his money is gone.
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