26 May The Most Tax Efficient Ways to Manage Your Wealth
Three facts stand out when it comes to life insurance. One, Canadians rarely think about it, two, there’s a good chance they don’t have enough of it, and three, they have no idea how it can be used most efficiently.
Statistics show, a large percentage of Canadians have been found to neglect basic life insurance which in turn supports their loved ones in the event of an unexpected calamity.
Losing a loved one is extremely difficult, dealing with the burdens of their taxes is another thing that should not be forgotten. Creating a plan that can be of some relief financially for your loved ones after you are gone is the foundation of the support they may need during these tough times.
To find out more on how to create your own financial plan to protect and transition your wealth, see here.
Another thing Canadians seem to ignore is the fact that insurance can be a wealth management and estate planning tool.
Using insurance to pile up wealth or pass it on to the next generation works best for those who are already in great shape financially.
That means people who have excess money to invest after maximizing their tax shelters such as RRSP’s, TFSA’s, RESP’s, and already have a substantial real estate portfolio.
With excess money to invest, many Canadians look to fixed income investments such as bonds to secure their capital. Though this is a very common, its not your only option, nor is it the most tax efficient way to grow your wealth.
Investment Grade Life Insurance
Investment grade life insurance is one of the most secure/tax efficient ways to grow your wealth due to the tax sheltering of cash value and the death benefit.
If you are looking for a way to build your wealth, maintain your wealth, or pass on your wealth in a tax efficient way, investment grade life insurance should be include in your overall wealth plan.
Creating a financial plan to build your wealth through insurance can depend on various things such as your age, income, investment objectives, and health. Looking at how this can fit into your plan sooner rather than later will only benefit you and your family in the future.
Let us Help You Manage Your Wealth
At Kemp Financial Group we provide sound financial advice and expert financial services, that will help grow, protect and transition your wealth in the most tax efficient way possible from one generation to the next.
With over 100+ years of combined experience within the family, we understand that Canada’s economy is dependent on the health and wealth of our client’s and communities.
Let Our Family Take Care of Yours.