I maxed out my RRSP’s & TFSA’s – Now what?

People who have exhausted their RRSP and TFSA contribution room and wish to safeguard and enhance their estate holdings even further, using tax efficient strategies, may opt to over fund a life insurance policy.

What is overfunding?

When you over fund a life insurance policy, you deposit above and beyond what your regular premium is supposed to be, up to a predetermined ceiling amount.

These extra amounts will accumulate within the policy, tax deferred, and create a cash surrender value, which will immediately enhance your estate’s worth.

In addition, you can use the accumulated funds for any purpose i.e. go on vacation, buy a car or even supplement your current or future income, without potentially having to pay these funds back.

This strategy should be considered when developing a comprehensive financial plan for you and your loved ones as it provides for:

• Increased – tax free – inheritance for beneficiaries when personally owned

• The ability to transfer accumulated corporate retained earnings to beneficiaries with minimal tax consequences when corporately owned

• Possible non taxable withdrawals in the event of critical illness, disability or loss of independence

• The ability to choose investment structure and allocation

• Coverage flexibility to address changing needs

To learn more about this advanced strategy Email us or call 778-776-4334.

Bridge to Prosperity is a unique Business and Wealth Management firm. Our goal is to help business owners, professionals and individuals enhance and protect their assets, using advanced tax efficient strategies.