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YOU CAN HAVE YOUR CAKE AND EAT IT TOO!
Guaranteed Minimum Lifetime Income at Retirement [GMWB]
Here is the Cake
Initiate Savings Plan
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Set up an account with an initial deposit, say $50,000 or $100,000, or more..
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Add additional deposits till retirement; or not; - your choice
- Invest in a wide variety of investment choices, some 50 to choose from based on your risk tolerance
- Capital Guarantees of 75% at maturity (10 yrs) or death; alternatively, 75% maturity and 100% at death.
- Select the GMWB option to take your retirement income in annual/monthly installments.
- Retirement income can start as early as age 65, or later if you wish.
- Prior to taking income, a guaranteed minimum 5% bonus is added to your deposits annually for up to 15 years.
- You can start an RRSP, RRIF, Open account or a Tax Free Savings account or, all of the above.
At Retirement - take the accumulation and create a
- GUARANTEED Income - so it cannot be lower
- MINIMUM Guarantee - So the income could be higher,
- LIFETIME Income - so its for the rest of your life,
- RESET to a NEW HIGHER MINIMUM GUARANTEE, If investment results are better that the Minimum Guarantee, tri-annually.
A Saving and Investment program that provides:
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a minimum Capital Guarantee
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a Guaranteed Minimum investment bonus of 5% annually for up to 15 yrs
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a Guaranteed Minimum Lifetime Income
And Then You Can Eat it Too
Plus
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A market driven upside opportunity that can increase the Value of your Portfolio and
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your Guaranteed minimum income - and
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this has the potential to improve indefinitely.
WOW !!
Now for the Realities of the Past Year or so
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- If you have been invested in the market in the past year, with the TSX having lost 40%, Dow 45%,, NASDAQ 40%
you are undoubtedly in the camp of unhappy campers.
- If you got out of the market at the bottom wondering when to get back in and sitting in Money market at 1.5%;
Your even more depressed
- If your close to retirement, Lost heavy in the marketAnd sitting on the sidelines,with only a few years to retirement
You are totally at a loss as to what to do now.
- Stay on sidelines to Preserve capital and earn 1.5%
- Go back to the market and risk what’s left as the recession is not over yet.
- Put what’s left under the mattress and earn nothing.
If you had accumulated $250,000 in RRSPs up to July of 2007 even with a good money manager, its quite possible you lost 30% and are now left with only $175,000.
Now consider this.
To get back to $250,000 you will need to gain 43% on your money.
That’s nearly 5 years at 8% annual rate of return, assuming a straight upward growth.
But the economy is not out of the woods yet, there is still the downside risk to this strategy.
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But as I said at the TOP
YOU CAN HAVE YOUR CAKE and
EAT IT TOO!
Consider a Saving and Investment program that provides YOU with a comfort level knowing that you have a:
· a minimum Capital Guarantee *
· a Guaranteed Capital Accumulation growth bonus, prior to income*
· a Guaranteed Minimum Lifetime Income
- Guaranteed Annual increase in you capital while you are saving, then a
- Guaranteed Minimum Lifetime Income
* some conditions apply - get details
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Plus
- A Market Driven Upside Opportunity to improve on annual returns and thus, the potential to
- RESET Higher the Minimum Guaranteed Income levels.
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Here are some situations and how they benefited
Stephen & Liz's situation -
Tell me about them . . .
I'm convinced. . . call me ...
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