The Tax and Estate Planning strategy that we are looking at in this video is one of the most effective ways to pass your hard earned money to your heirs. It’s meant for money that is not needed in your daily life throughout retirement… Money you have set aside for your heirs, or maybe even a charity.
When we look at planning your estate we must look at the tax consequences of each strategy. The Estate Bond that we are talking about today is a strategy is most effective if you fall within the following guidelines:
1) Aged 50-85
2) Insurable (either yourself or your spouse)
3) They have a lump sum of money that is meant as an inheritance (not needed for retirement)
4) Are cautious or afraid of stock market volatility (risk)
If this sounds like you then take a watch through the video, and notice that the strategy that we are proposing here has the possibility of quadrupling the amount of money that can go to your heirs when compared to a GIC at 4%! It even handily beats a balanced stock market investment… and it does so without taking on the risk of those stock market investments.
How Does it Work?
Essentially a lump sum of money is taken to purchase an insurance policy. Once that policy is purchased the death benefit immediately surpasses what the money was worth in your current bank account or GIC. Throughout your whole life expectancy and beyond your money will be worth significantly more to your heirs than if you had left it in that GIC or bank account… with little to no risk. Essentially you take a one time payment to secure the future for your heirs when you pass away.
What are the Downsides to this Type of Estate Planning?
1) As I mentioned in the beginning, this is money you don’t need throughout your retirement. It is meant specifically for your heirs
2) It isn’t included in your retirement strategy. This is separate money completely – meant for a charity or your heirs.
There are a lot of methods to planning this strategy – we’ve only mentioned one here. We’d love a change to look at your current situation and show you some creative ways to amplifying your money.
If you think this could benefit you or someone you know (parent, grandparent, friend, etc) please contact Travis Strain at 604-308-6030, or mail@travisstrain.ca
Travis Strain, CFP
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