There are many products on the market today that can create a great tax sheltering opportunity if they are properly designed. Remember, dont confuse tax shelter with RRSP which is simply tax deferred. Although registered plans in themselves can be a great tax savings tool, always keep some money non-registered as it can save one a lot of tax dollars during retirement.
A new product soon to be launched is the tax free savings account which will allow individuals to shelter up to $5,000 per year and never pay any tax on the growth. A wide array of investment options will be available for these accounts. Another tax sheltering instrument is the use of insurance products either whole life or universal life. These products must specifically be designed as a tax sheltering instrument and, if set up properly, the investments will never be subject to tax again, even at retirement.
Some of these products have never paid less than 6.5% every year even during very poor and dismal economic times. These products are a great way to remove the market uncertainties and allow you to sleep better at night. To find out more information on any of these products, please contact one of our Peterborough financial advisors today.
It has been a tradition of IFG to have ongoing learning sessions to educate our clients. Our next learning session will be held on December, 1st.
Buying life insurance is one of the most unselfish decisions a person can make. With the proper planning and budgeting one can be covered inexpensively.