Protect and Grow Your Nest Egg - Situational Financial Planning, Legal & ID Shield, Halifax, Nova Scotia, Canada

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Protect and Grow Your Nest Egg

Financial Plan
Why and How to
Protect and Grow Your Nest Egg
Some ways to help you so you can:
  • increase tax efficiency
  • guarantee income
  • address volatility
  • increase after tax income
  • "lock in" gains
  • leave a legacy
  • ensure privacy
  • provide potential creditor protection
  • and more
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Corporate Planning Opportunities

If you own a corporation, you may qualify for additional planning opportunities

For example: your company has a problem to solve - with proper planning, both can benefit.

Completion of a"Business Overview"will help you determine if you are missing out.

I want to invest in equities. Is there a way to guarantee my initial investment at maturity?

Guaranteed Investment Funds (Segregated funds) are similar to mutual funds, but since they are issued by insurance companies they offer maturity guarantees. The guarantees are typically 75% or 100% and are specified in the Information Folder provided by the issuing company.

My income and most of my wealth is dependent on my company. What can I do to protect myself?

There are several planning strategies involving using trusts and corporate structure, etc. that can be used. One basic strategy is to ensure you have “creditor protected” investments outside the company.

In certain circumstances, you can protect your Guaranteed Interest Annuity (GIA), Segregated Fund and Life Insurance policies from unforeseen bankruptcy or legal proceedings by designating a preferred class beneficiary. Creditor protection rules are dependent on legislation and vary by province. Since there are some circumstances where creditor protection may not apply, it is recommended that you consult a legal advisor for your specific situation.

I am concerned about the ups and downs of the market. How do I lock in my gains?

Some Guaranteed Investment Funds (GIFs) offer guarantee resets to “lock in market gains”. This means if the market goes down, up to 100% of your investment or higher reset Guarantee Maturity Amount is protected. Not all plans offer resets and there are design differences.

I want to invest in equities for potential growth, but I want to guaranteed my investment for my heirs?

Guaranteed Investment Funds offer death benefit guarantees. The guarantees are typically 75% or 100%. There are design differences between companies.

Knowing that my probated will is a matter of public record is disturbing. How can I ensure privacy? Is there a way to have my investment transferred quickly at my death and avoid any probate fees.

Guaranteed Investment Funds (GIFs), guaranteed investment annuities (GIAs) and life insurance do not flow into your estate if you have a designated beneficiary on your contract. This means they can bypass the probate process and the money goes directly to beneficiaries avoiding costly fees and delays. Your beneficiaries receive the money quickly. There are no probate fees taken from the value of the estate. Privacy, by avoiding probate

I am concerned about how my loved ones will spend their inheritance.

Make your legacy go a long way. If you’re concerned with how your loved ones will spend their inheritance, there is a solution to help. The Gradual Inheritance Concept gives you the flexibility to control how your investment is paid to your beneficiaries (see blended family example below)

We have a blended family. How can I ensure what I want to happen, happens?

Mini-case study example:

The facts:

Robert (age 71) Second marriage to Marie (age 65) Robert has two children from first marriage, Marie has one child Robert has assets of $800,000 in a RRIF mutual fund. In his will, Marie is designated as a beneficiary of the RRIF. Marie has very limited resources

Desired outcome:

Robert wants Marie to have some lifelong income He wants to prevent her from withdrawing all of the RRIF assets so that, upon her death, some RRIF assets are left available to be shared between the children. Possible guarantees

Proposed solution

Transfer assets to a segregated fund contract 100% death benefit guarantee available Designate Marie as successor annuitant (receives the income at Robert's death) Designate the children as irrevocable beneficiaries. The irrevocable beneficiary designation will survive Robert's death. Provide specific guidelines regarding designation. Specify maximum amount to be withdrawn by Marie without the consent of the children.

Market volatility increases uncertainty adversely affects market returns. How can I smooth out my investment return?

One approach is to include a volatility control, a systematic asset allocation strategy, which smoothes out each fund's investment return volatility - automatically.

How can I have access to funds for emergencies smooth out or supplement retirement income and avoid future loan applications?

Establish a Lifestyle Line of Credit, it can be part of an all in one account or a separate mortgage. It essentially operates like a line of credit. Accessing home equity in this way is a flexible alternative to a reverse mortgage and is often more cost effective. Not for everyone, but worth exploring. If you are interested in more information, you can, contact Blake directly, or ask me for an introduction.

Note: Although you can apply for an all-in-one account or a collateral mortgage before, or after, retirement, before retirement is often better.

How can I ensure that I receive the full amount of my RRIF maturity guarantee?

Some Benefit Guarantees are designed to ensure that you receive the full amount of your guaranteed investment fund maturity guarantee as income. You can make sure that your guarantee is reduced by only the amount of the withdrawal with dollar-for-dollar reductions. Proportional reductions, on the other hand, can be greater than withdrawal in down markets. Dollar-for-dollar preserves guarantees so income lasts longer.

I want to take advantage of the growth potential of the market is there another way to keep my capital secure?

Market volatility makes you nervous, yet you would like to take advantage of the growth potential of the market. Ultilze a GIF and a GIA together.

Guaranteed investment funds (GIFs) are investment funds issued by insurance companies and as such have maturity and death guarantees of 75% or 100%. Utilizing the built-in guarantees of a GIF and a Guaranteed Interest Annuity (GIA) with a 100% guaranteed, you can position your portfolio to provide growth opportunities while keeping your capital secure.

In addition there maybe pension splitting opportunities with the GIA.

I have guaranteed interest investments, generating income. Is there a way to increase my after tax income and preserve my capital for my heirs?

A Personal Insured Annuity is an alternative low risk investment offering high after tax yield.

Increased Income - can provide by 50%, 60%, 70% or more income over a traditional GIC or equivalent.

Lower taxable income - your reportable income is decreased when using a prescribed life annuity. This means you will pay less tax on your annuity income providing the opportunity to maximize government benefits.

Estate protection - an amount equal to your initial investment is paid to your beneficiaries or estate when you die - no estate or probate fees.

I do not have a pension plan and I am missing out on the pension tax credit. Want can I do?

A non-refundable credit is associated with the first $2,000 of eligible pension income. If you are over age 65, interest from a non-registered GIA, (Guaranteed Interest Annuity) qualifies. Interest from a GIC (Guaranteed Investment Certificate does not qualify.

Income received can sometimes be apportioned between spouses so that some of the income is moved to a spouse who pays tax at a rate lower than the other one, reducing the family tax bill.

How will taxes affect the legacy I leave to my family?

You may not need all of your Net Worth during your lifetime. Does it make sense to keep paying income tax each year on the growth of your non-registered investments?

The strategy

Use non-registered assets you won’t need during your lifetime

Buy an exempt permanent life insurance policy Structure the policy to: –Enable tax-efficient distribution of your assets to future generations –Give you control and access while living

Benefits for you

Taxes Reduce your annual income tax


–Keep control of your assets

–Can change beneficiary and coverage amount (subject to underwriting requirements)

–Can access the cash value in the policy if necessary


–Generate estate value, not taxable income

–Preserve your legacy for your children and grandchildren

How do I manage the effects of reverse-dollar-cost-averaging?

For many years, dollar cost averaging has been used to move money into markets that are volatile. This discipline fights against the natural tendency to buy when the markets are high and sell when the markets are low.

When you start removing level income each month, it is counterproductive because you end up taking out a greater percentage of your assets when values are reduced and less when the values are improved. What you really want to accomplish, is to remove more value when the markets are up and less value when the markets are down. A mechanism to accomplish this could be referred to as “asset value averaging”. By using a constant percentage of assets, the dollars removed from the investment fund when markets are up will be much larger than the amount removed when markets are down.

This asset value averaging approach sounds great theoretically, but most people don’t like to live with a fluctuating income. A “reservoir fund” can be established to receive these fluctuating income amounts and invest them on a more conservative basis using money market or income funds. Then, a constant dollar amount can be extracted from this much less volatile “reservoir” fund.

In this 90 second video "Thomas" demonstrates how a  strategy can supercharge an outcome by applying Newton's Laws.        

Note: There is no one "cookie cutter" plan or product solution. The process involves understanding your overall objectives, determining your needs and then based on your individual situation, deciding how your resources should be allocated. Please note that product features differ between companies, so if your financial or retirement planner cannot access them for you, checking around would be prudent.

Do you have "what about me " questions?

Is there a fit? Would like to learn more?  Schedule a 30 minute telephone or Skype meeting?
If you would like to contact me you can call, email or complete the contact form.

If a product is recommended to address your needs: permanent life insurance,annuities, Executor Liability Insurance,GIFs,guaranteed issue life insurance,universal life insurance,GICs,employee benefits,guaranteed investment funds,business sale referral,term life insurance,whole life insurance,business insurance,long term care insurance,marine insurance,simplified issue life insurance,disability insurance,critical illness insurance,home and auto insurance,travel insurance,RRSPs,pension plans,retirement income plans,custom designed risk management,income annuities,executive benefit plans,commercial insurance,health insurance,mortgage referrals,cyber and privacy insurance,joint annuities, We are not obligation to do business with any single company or group.


Paul is a Certified Financial Planner (CFP) licensed by the Financial Planners Standards Council; Financial and Estate Plans are provided under that license.

The information contained in this website is intended to provide general guidelines only. The application and impact of the law can vary widely from case to case based on the specific or unique facts involved. Accordingly, the information in this article is not intended to serve as legal, accounting or tax advice. Users are encouraged to consult with their professional advisers for advice concerning specific matters before making a decision.

** Email Disclosure: For your convenience, you have the option of contacting by email. Please note that no email is 100% secure. Only provide us with your contact information and your question. Do not include sensitive information such as income, social insurance number.

J. Paul Wilson, CFP®, ChFC®
Certified Financial Planner
27 Blue Thistle Road Halifax, Nova Scotia, B3S 1M3
Office (902) 405-8665 Email
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