Explore the Tax Deferred Annuity Concept match the GIC net income

Transcription

1 Explore the Tax Deferred Annuity Concept match the GIC net income

2 Appropriate for individuals requiring a cash-flow from non-registered assets Combines a prescribed conventional annuity yielding a guaranteed income stream and growth oriented investment funds (mutual or segregated) Income can be payable for a certain duration or for the client s lifetime

3 Concept designed to create a tax-efficient income stream Guaranteed - steady annuity income addresses risk of selling securities at the wrong time Prescribed annuity income is extremely tax-efficient because taxation is spread evenly over the period of the annuity Income from prescribed conventional annuities: Helps preserve OAS benefits for high income earners For those over age 65, provides opportunities for pension income credit and pension splitting with the added benefit of minimizing taxes on family income and maximizing utilisation of tax credits Meets the clients cash-flow needs today and protects their assets for the future

4 Funds in excess of annuity s single premium are invested in growth oriented mutual or segregated funds Separating guaranteed cash-flow from market-based investments avoids selling at the wrong time Annuity provides guaranteed income portion of this concept Growth funds potentially protect against inflation and help restore wealth Great alternative to GICs, T-SWPs or SWPs

5 Two versions available from the Advisor Portal: Tax Deferred Annuity Concept Combination of prescribed term certain annuity and growth funds Default set for 10 year Term Certain Tax Deferred Life Annuity Concept Combination of prescribed single life annuity and growth funds Matches illustration period with annuitant s life expectancy Default is single life annuity guaranteed 10 years Choose the type which matches your client s income needs

6 Let s see an example: Anne, age 50 $200,000 non-registered investment in GICs Marginal tax rate: 40% GIC rate: 3% Net rate of return on Growth Funds: 3.5%

7 Same income level + less taxes to pay + growth potential = Superior income delivery process!

8 Conclusion This is an income delivery process, not a market timing strategy Addresses both tax-efficiency and the risk of selling securities at inopportune times Can help restore lost government benefits or tax credits

9 Explore the Tax Deferred Annuity Concept match the GIC net income This document is intended for general information only. It should not be construed as legal, accounting, tax or specific investment advice. Clients should consult a professional advisor concerning their situations and any specific investment matters. While reasonable steps have been taken to ensure that this information was accurate as of the date hereof, The Standard Life Assurance Company of Canada and its affiliates make no representation or warranty as to the accuracy of this information and assume no responsibility for reliance upon it. Assumptions are for illustration only and do not represent a guarantee of future performance. For advisor use only. This document is not intended for public distribution.