Save Time & Money.
Free, Fast & Easy To Apply. TFSA Quick Quote
Are you concerned
about…
-the stability of your Pension Plan
-outliving your retirement savings
-inflation risk
-market down turns during early stage of retirement
-liquidity needs
-legacy and estate planning needs
Then consider, asset and product allocations,
the art of creating a mix of various assets and product
allocations to address the issue that no one asset or product
can solve all of your problems. As traditional strategies alone
and one investment assest or product is not enough to diversify
your risk to profit from your investment choices, ask us about
our recommended Guaranteed Seg Fund based Insurance Products
such as an Annuity, Systematic Withdrawals, Manulife’s
Income Plus or Transamerica’s Five For Life Guaranteed
Minimum Withdrawal Plans.
What is a TFSA?
TFSA: Tax-Free Savings Account. It is similar to a regular
banking account it will however allow you to save or invest
money without paying tax on the income it earns. You will be
able to withdraw funds at any time, without being subject to
income tax. The amount withdrawn from a Tax Free Savings
Account can be put back at a later date, without reducing your
contribution room. Unlike an RRSP, any money you contribute to
a Tax Free Savings Account will not be tax-deductible.
Tax-Free Savings Account, TFSA Factoids:
Annual Contribution Limit
$5,000
Tax Deductible Contributions?
No
Tax Free Growth?
Yes
Taxable Withdrawals?
No
Carry forward of unused contribution room?
Yes
Re-contribution of withdrawals?
Yes
Minimum age?
18
Maximum age?
None
Age for mandatory withdrawals?
None
Tell Us About
Yourself:
Province:
E-Mail (REQUIRED):
E-Mail again for accuracy:
Phone:
Fax (optional):
Sex
(M/F):
Smoker or
Non-Smoker?:
HOW MUCH MONEY DO YOU HAVE TO INVEST OR ARE SEEKING TO TRANSFER
INTO A NEW INVESTMENT OPPORTUNITY?
Your Message:
FINANCIAL OBJECTIVES AND
TIME HORIZON
1. Which of the following statements best describes
your objective for the money you are investing?
a) Preservation of
Capital
b) Growth through a balance of capital gains and
income
c)
Growth through capital gains and some income
d) Growth
primarily through capital gains
2. How long do you plan to have that
money invested?
a) Under 2 Years
b) 2 - 5 Years
c) 6 - 10 Years
d) 11 - 15 Years
e) Over 15 Years
3. What is the chance that you may
wish to cash in a significant portion of this investment
earlier than anticipated?
a) Low (Less than 10%)
b) Medium (Between 10%
- 25%)
c) High (Over 25%)
INVESTMENT EXPERIENCE
AND KNOWLEDGE
4. Which of the following best describes your level of
investment knowledge?
a) Novice
b) Some familiarity
c) Reasonably
knowledgeable
d) Quite knowledgeable
e) Very knowledgeable
ATTITUDE TOWARDS
RISK
5. Typically, investments which are more volatile
(i.e., tend to go up and down in value) will, over the long
term, have greater potential for return. With regards to this
statement, how much of a drop in value over one year could you
tolerate before becoming uncomfortable?
a) Less than 10%
b)
1% to 3%
c) 3% to 5%
d) 6% to 10%
e) More than 10%
6. Investments that offer the highest
potential of returns typically have the greatest variability of
returns. Given this statement, assuming you had a $10,000
investment, please select one of the following gain.loss
scenarios that you would be most comfortable with after a
five-year investment time period. The gain/loss scenarios below
show range of the potential value of the $10,000 investment at
the end of the five-year period.
a) Highest $13,500
Lowest $10,400
b) Highest $17,100
Lowest $9,700
c) Highest $19,700
Lowest $8,800
d) Highest $21,800
Lowest $7,900
e) Highest $26,600
Lowest $6,700
PERSONAL
INFORMATION
7. Which of the following best describes your
employment circumstances?
a) Full-time
b) Self-employed
c) Part-time
d) Retired
e) Other
8. Your personal income, before taxes,
is in which of the following ranges:
a) Under $25,000
b) $25,000 -
$50,000
c) $50,001 - $80,000
d) $80,001 - $125,000
e) Over $125,000
9. The current value of your
investments (i.e., registered, non-registered, mutual funds,
segregated funds, checking and saving accounts) excluding real
estate is:
a) $25,000 or less
b) $25,001 -
$50,000
c) $50,001 - $100,000
d) $100,001 - $250,000
e) Over $250,000
10. Your current age is within which
of the following categories:
a) Under 30
b) 30 - 39
c) 40 - 54
d) 55 - 69
e) Over 69
Send my results via:
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Regular
Mail
Call Me by
Phone
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Get Us The Quote!
Daniel La
Tour is our Licensed Life Insurance Agent in BC, AB, ON & QC.
For help and advice, contact Daniel La Tour.
Call NOW! 1-888-977-7778 (toll free)
(Monday-Friday 9-9, Saturdays
11-5, EST.
Our International Number is: 1-514-630-6116)
With the advent of the new TFSA,
one of the questions financial planners will need to address is which
plan best meets their clients’ needs. While there are some
obvious as well as subtle similarities and differences between the two,
each of these accounts holds an after-tax advantage in returns over a
non-registered account.
TFSAs and RRSPs are directly
comparable in that:
• They do not impose a tax
on annual investment income
• There are penalties of 1%
per month for over-contributions
• Both require holders to
include eligible investments
TFSAs and RRSPs are different in
that:
• TFSA holders have to be at
least 18 years of age, whereas there is no minimum age requirement
for an RRSP.
• The TFSA allows the
ability to carry forward contribution room indefinitely following a
withdrawal, something which is unfortunately not replicated with
RRSP’s (less a few exceptions).
• There is no upper age
limit for the TFSA. TFSA’s can last the holder’s ifetime,
whereas an RRSP matures when the holder reaches age 71. In order to
illustrate the difference between the TFSA, and the RRSP, I have
included a study comparing the two. The example used a $1,000 one-time
contribution, held for 20 years by an individual with a 40% marginal
tax rate. The assumed return, implying a very conservatively managed
portfolio was 5.5% compounded annually.
By the end of year 20, the value of
the net contribution plus investment income has reached $1,751 for the
TFSA and $2,918 for the RRSP. The great equalizer between the TFSA and
the RRSP account occurs at the time of withdrawal. The value of the
TFSA remains at $1,751 since no taxes are payable upon withdrawal.
Contrary, the $2,918 in the RRSP is taxable at the highest marginal tax
rate, which in this case means a tax liability of $1,167. This leaves
the RRSP holder with after tax proceeds of $1,751, in line with that of
the TFSA. A major determining factor for the RRSP is the tax rate at
the time of withdrawal and how it compares to the tax rate at
the time of contribution.
Here are three possible scenarios
and how each may affect your choice of account:
• If the two rates are
identical, as in the example above, the TFSA and the RRSP
are equally effective tax-saving alternatives
• If the tax rate at the
time of withdrawal is lower than at the time of contribution, the RRSP is the
better choice.
• If the tax rate at the
time of withdrawal is higher than at the time of contribution, the advantage clearly
goes to the TFSA.
While making a choice between the
two may sometimes seem complicated, it really isn’t. The
important thing to remember is that the TFSA is simply another weapon
in your clients’ investment
arsenal. Depending on their circumstance, it can be used alone or
in concert with other investment vehicles to help them save
taxes.
