February 24, 2022
I also cover this In a YouTube video. Click here to watch!
If everything you knew to be true, was not true, when would you like to know?
Immediately of course! So that you can take corrective action A-S-A-P.
I want to help you reduce your tax bill. By the end of this blog, I hope to have given you a couple of ideas to consider to do that, and more importantly, stop making Revenue Canada one of your beneficiaries each month.
Let me ask you a question. Would it be amazing if you could be the beneficiary of your own Life Insurance Policy while you are still alive?
Really be honest – what do most people think you have to do to collect on life insurance?
Most people I ask say that you have to die.
What would you say if I told you that life insurance companies have never, ever paid any money to dead people?
Now if you think I want you to die, I don’t!
But what if I could show you how to use the living benefits of a Cash Value Life Insurance Policy to never lose any money, ever again?
And then – because it is designed to never lose any money – what if you could access that money to take advantage of investment opportunities as they present themselves? What if you could do all of this with little or no income tax liability?
(You can use this strategy to pay for long-term care… notice that I didn’t say nursing homes.)
DID YOU KNOW that by early January last year (2021), according to the National Institute on Aging at Ryerson University, retirement/nursing homes in Canada accounted for over 70% of the people who died from Covid-19.
Would you ever put someone you love into a nursing or retirement home if you didn’t have to?
Wouldn’t it be better to build value in a strategy, so that you could pay for care at home?
Wouldn’t it be wonderful if we could build up $300,000, $400,000, or even $500,000 of cash value in this strategy so you could be in control of situations like this?
Do you know what the best part is?
If you don’t ever need long-term care, then you haven’t wasted any money on the coverage.
Additionally, when you retire, we can supplement your retirement paycheque with tax-free income for the rest of your life.
And when you die, we will send whatever is left to your family, business, or charity – 100% tax-free.
If you want more information on how you can take advantage of this strategy, please send me an email at the address below and I’d be happy to send it to you.
Now, is there someone at Revenue Canada that you have decided you are so madly in love with that you want to leave them a bunch of your money?
Do you realize that if you have an RRSP, RRIF, or a LIRA and you have two or more non-spouse beneficiaries, then it is highly likely that the primary beneficiary of that money will be Revenue Canada?
Let me explain…
Under the current laws, there will never be any taxes owing when money moves between spouses. But when your spouse passes away and the children inherit, this type of money is 100% taxable on your spouse’s Terminal Tax Return. That means that over 50% of this money will be sent to Revenue Canada… and the remaining money will go to your children.
Let me give you an example.
Let’s say you have passed on, and your spouse has $500,000 in their RRSP or an RRIF and then they pass away. Over $250,000 will be paid to Revenue Canada and less than $250,000 will go to your children…
Are you okay with that?
If Revenue Canada takes over $250,000 in this example, haven’t you really just been a tax collector for Revenue Canada for all these years? Are you okay with Revenue Canada taking most of the gains you made on this money over your lifetime?
In other words: are you building a legacy for Revenue Canada, or are you building a legacy for your family and/or your business?
I know this is not fair, but there are strategies to eliminate Revenue Canada from your estate and from your spouse’s estate.
So let me ask you another question – would you prefer to pay your taxes when they are on sale now, or do you want to wait until you have to pay full price in the future?
What would be the most beneficial for you?
Taking the tax deduction now on a small amount of money and build it into a large amount of money that Revenue Canada can tax at whatever level is deemed necessary in the future; or
To pay your taxes now on a small amount of money and build it into a large amount of money that Revenue Canada could never get their hands on again?
If your answer to my question is option #2, then why are most Canadians doing option #1?
If you are planning to contribute to an RRSP right now, then you are doing option #1. But if you know that option #2 is more beneficial, why haven’t you considered doing option #2?
If you could establish a strategy, like option #2, that was most beneficial to you and your family, rather than Revenue Canada, then I would ask you: when would you like to get started?
Canada is now a global leader in two areas.
It is in the top 10 places in the world to retire – eighth to be exact.
It is also now a global leader in debt.
That dramatically increased debt will only increase the difficulty in providing the promised retiree benefits for Canadians.
Demographics, longevity, and illiquidity of the assets owned by Canadians will put more and more stress on Canadian retirees. We must build liquidity by using Tax-Free Savings Accounts and Cash Value Life Insurance so Canadians can have the retirements they deserve…
However, action must be taken soon. With debt ballooning and more people retiring we do not have enough liquid money to succeed. So take action now, before the debt tsunami threatens your retirement.
If you’d like to learn more about how you can implement a number of the strategies highlighted here, contact me at the coordinates below to apply to become my client. Thanks for reading and always remember: when we design financial plans for our clients, we make sure that your money outlives you in retirement.
For the best life insurance advice and information, subscribe to my YouTube Channel and hit the notifications bell to be notified when we post new videos. The channel allows me to share my passion for personal financial planning and I produce content that I would want to watch – and because of that, I promise to give you 110% effort in every video that I make.
By John Moakler, BMath, CFP, CLU
President and Senior Executive Financial Planner
Moakler Wealth Management
1 416 840 8544