1. $100,000 Prescribed Annuity (Joint: Dick M 71, Jane F 71)Annual Income $5,888Taxable Amount $ 0Tax Payable $ 0Annual CASH FLOW $ 5,888Pre-tax rate of return needed to provide similar cash flow: 10.71%2. $100,000 Guaranteed Investment Fund (GIF) with 100% Death Benefit GuaranteeGuaranteed Investment Funds (GIF) are investment funds issued by insurance companies and as such have maturity and death guarantees of 75% or 100%. Utilizing the built-in guarantees of a GIF, the portfolio could be positioned to provide growth opportunities while keeping the capital secure at maturity and death.Some companies also offer resets that lock market gains to maturity. Funds are invested at policyholder’s risk. See the fund’s information folder for more information.Please note that product features differ between companies, so if your financial or retirement planner cannot access them for you, checking around would be prudent.This option provides an increase in guaranteed income. At the first death, the income would continue for the survivor and not be reduced. The original investment in the GIF could be guaranteed at the 100% at death and maturity.
MaleAGE Increase in Taxable Portion.
55 31.43%60 41.83%65 53.40%70 67.01%75 84.29%80 100.00%
FemaleAGE Increase in Taxable Portion.
55 17.74%60 23.32%65 36.46%70 60.52%75 109.80%80 165.71%
1. If you are over age 55, review and determine if a prescribed annuity is right for you. Make an informed decision. If it is appropriate, put it in place before the end of 2016, it will then be locked in or “grandfathered”. Plans purchased after that WILL attract more tax!2. Implementing a strategy involving annuities, is sometimes complicated; however, it is always permanent. Currently, in most provinces in Canada anyone can call themselves a financial advisor or financial planner. It is your money, so be prudent and check credentials and qualifications. Look for life insurance brokers with professional designations like a CFP (Certified Financial Planner) or CLU (Chartered Life Underwriter).3. Whether you are 55 or not, spread the word, share this article, let your friends and family know. “Although ignorance might be bliss, it can be costly”.