Here’s an idea to get the attention of clients and prospects: In the subject line of an email ask: “Are you interested in lifetime guaranteed tax-free income?” Let’s make the assumption that most people would be intrigued by such a thing. You can offer it. Just set up a GMWB TFSA.
Let’s assume a client is 45, plans to retire at 65, deposits the TFSA maximum amount today, $52,000, and then commits to deposit $5,500 for the next 19 years. Using Empire’s product as an example, the client would have a guaranteed income base of $260,750 and guaranteed income of $10,430 for life at age 65. And, this is the conservative case using a minus 2% rate of return. Get some better returns and a couple of resets and this client would have nice guaranteed tax-free income for life. Most carriers offer their GMWBs as TFSAs, just check to be sure before you select which company to use. This concept is dependent on, like all concepts, the product’s continuing availability and the current tax rules. Take care, Scott Edgington Director of Wealth Qualified Financial Services Scott.firstname.lastname@example.org 416.786.4140