allen wong & associates HAVE YOU EVER CONSIDERED WHAT WOULD - - PowerPoint PPT Presentation

allen wong & associates

HAVE YOU EVER CONSIDERED WHAT WOULD HAPPEN TO YOUR ESTATE IF YOU DIE AND HAVE NO WILL?

All to the crown No lawful heirs 1st $200,000 to spouse 1/3 of balance to spouse 2/3 of balance to child Spouse and 2 or more children 1st $200,000 to spouse 1/2 of balance to spouse 1/2 of balance to child Spouse and 1 child All property to spouse Spouse Only DISTRIBUTION AS FOLLOWS: HEIRS

NO WILL AND TESTIMENT ? HOW ARE ESTATE ASSETS DISTRIBUTED IN ONTARIO

Please note this is for informational purposes only and must not be copied or distributed without written consent from Allen Wong and Associates. Every effort has been made to ensure accuracy, however we are not liable for any errors or omissions

allen wong & associates

PROBATE FEES PROVINCE OF ONTARIO

$5 PER $1000 FOR THE FIRST $50,000 $15 PER $1000 THERE AFTER NO CAP ON MAXIMUM CHARGED. Therefore an estate worth $1,000,000 would face total Probate Fees of $14,500

Please note this is for informational purposes only and must not be copied or distributed without written consent from Allen Wong and Associates. Every effort has been made to ensure accuracy, however we are not liable for any errors or omissions

allen wong & associates

HOW MUCH CAN A $10,000 RRSP CONTRIBUTION SAVE YOU IN TAXES?

Please note this is for informational purposes only and must not be copied or distributed without written consent from Allen Wong and Associates. Every effort has been made to ensure accuracy, however we are not liable for any errors or omissions

allen wong & associates

CANADA PENSION PLAN (CPP)

CPP rates are adjusted every January to take into account increases in the cost of living, as measured by the Consumer Price index

Source: Social Development Canada

Please note this is for informational purposes only and must not be copied or distributed without written consent from Allen Wong and Associates. Every effort has been made to ensure accuracy, however we are not liable for any errors or omissions

allen wong & associates

TAXATION OF DIFFERENT INCOME TYPES

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allen wong & associates

THE POWER OF COMPOUND INTEREST

Based on 5% Compound Annual Return

Please note this is for informational purposes only and must not be copied or distributed without written consent from Allen Wong and Associates. Every effort has been made to ensure accuracy, however we are not liable for any errors or omissions

allen wong & associates

REGISTERED EDUCATION SAVINGS PLANS HIGHLIGHTS (RESP)

Please note this is for informational purposes only and must not be copied or distributed without written consent from Allen Wong and Associates. Every effort has been made to ensure accuracy, however we are not liable for any errors or omissions

allen wong & associates

WITHHOLDING TAXES ON RRSP

31% 30% Over $ 15,000 26% 20% $5,001 to $15,000 21% 10% Up to $5,000

Quebec All Provinces Except Quebec Amount Withdrawn In Excess Of Minimum

Please note this is for informational purposes only and must not be copied or distributed without written consent from Allen Wong and Associates. Every effort has been made to ensure accuracy, however we are not liable for any errors or omissions

allen wong & associates

LARGER DOWNPAYMENT OR BUY THAT CAR ? HOW DOWNPAYMENTS EFFECT MORTGAGES

House: $350,000 Mortgage Rate 5.79% Amortization: 25 years

$ 349,500 $277,050 Total Payment 25 Years $1,165.00 $923.50 Monthly Mortgage Payment $ 200,000 $ 150,000 Total Mortgage $ 150,000 $ 200,000 Down Payment $ 350,000 $ 350,000 House Price

Scenario 2 Down Payment Scenario 1 Down Payment

***** AN ADDITIONAL $50,000 DOWN CAN SAVE YOU OVER $72,000 IN INTEREST PAYMENT OVER THE LIFE OF YOUR MORTGAGE

Please note this is for informational purposes only and must not be copied or distributed without written consent from Allen Wong and Associates. Every effort has been made to ensure accuracy, however we are not liable for any errors or omissions

allen wong & associates

MORTGAGES MONTHLY VS. BI-WEEKLY

The effect of biweekly mortgage payments can be dramatic. For example, if you currently have a $150,000 mortgage loan at 9 percent fixed interest, you will have paid approximately $372,000 at the end of 25 years. That’s a $222,500 in interest! However, if you use a biweekly payment system, you will pay $313,000 and have it completely paid off in UNDER 20 years. You save a staggering $69,000 and you pay the loan off 5 years earlier!

Please note this is for informational purposes only and must not be copied or distributed without written consent from Allen Wong and Associates. Every effort has been made to ensure accuracy, however we are not liable for any errors or omissions

allen wong & associates WHAT HAPPENS IF YOUR LIFE INSURANCE COMPANY GOES BANKRUPT?

If your life insurance company fails, your policies will be transferred to a solvent company. Assuris guarantees that you will retain at least 85% of the insurance benefits you were promised. Insurance benefits include Death, Health Expense, Monthly Income and Cash Value. Your deposit type products will also be transferred to a solvent company. For these products, Assuris guarantees that you will retain 100%

• f your Accumulated Value up to $100,000. Deposit type products include accumulation annuities, universal life overflow accounts,

premium deposit accounts and dividend deposit accounts.

What Products Are Protected By Assuris? How Does Assuris Protect Your Clients?

Life Insurance, Critical Illness, Health Insurance, Disability Insurance, Long Term Care Insurance, Annuities, Segregated Funds and Group Insurance Also Accumulation Annuities and Group Retirement Products.

Example of Some Carriers Covered By Assuris?

AIG Assumption Life AXA Blue Cross Life Insurance Canada Life Cumis Life Desjardins Empire Life Equitable Life Industrial Alliance Pacific Manulife Pencorp Life RBC Insurance Standard Life Sun Life Transamerica Life Unity Life UL Mutual

Please note this is for informational purposes only and must not be copied or distributed without written consent from Allen Wong and Associates. Every effort has been made to ensure accuracy, however we are not liable for any errors or omissions

allen wong & associates

THE RULE OF 72?

HOW LONG WILL IT TAKE FOR YOUR SAVINGS TO DOUBLE?

Example $10,000 invested at 12% will double every 6 years $1,280,000 12% 42 $640,000 $640,000 12% 36 $320,000 $320,000 12% 30 $160,000 $160,000 12% 24 $80,000 $80,000 12% 18 $40,000 $40,000 12% 12 $20,000 $20,000 12% 6 $10,000

Value of Investment Rate of Return Years Invested/ Doubles Initial Deposit/Starting Investment Therefore $10,000 invested at 12% will double every 6 years and total $1,280,000 in 42 years

Please note this is for informational purposes only and must not be copied or distributed without written consent from Allen Wong and Associates. Every effort has been made to ensure accuracy, however we are not liable for any errors or omissions

allen wong & associates

THE RULE OF 114 or 144?

Most of us have heard of the rule of 72, which can explain how long it takes for our investments to double based on our expected rate of return. But have you ever wondered how long it would take your investments to triple or quadruple (4Times)? Let me introduce you to the Rule of 114 or 144 9.5 years 12% 14 years 8% 19 years 6% 28.5 years 4% 57 years 2%

The Rule of 114

Rate of Return Years to Triple

The Rule of 144

Rate of Return Years to Quadruple 12 Years 12% 18 Years 8% 24 years 6% 36 Years 4% 72 Years 2% Simply take the either the rule of 114 or 144 and divide by the rate of return to get the estimated number of years to tripe or Quadruple for example at 8% ( 114/8=14 Years or 144/8 equals 18 years)

Please note this is for informational purposes only and must not be copied or distributed without written consent from Allen Wong and Associates. Every effort has been made to ensure accuracy, however we are not liable for any errors or omissions

allen wong & associates

EARLY BIRD GETS THE WORM!

RRSP INVESTING, THE EARLIER THE BETTER!

Please note this is for informational purposes only and must not be copied or distributed without written consent from Allen Wong and Associates. Every effort has been made to ensure accuracy, however we are not liable for any errors or omissions

allen wong & associates

NOTHING VENTURED NOTHING GAINED!

THE IMPORTANCE OF KYC AND INVESTOR PROFILES

In today’s volatile financial markets, the idea of knowing your clients and utilizing investor profiles has never made more sense! We have all heard the saying “Nothing Ventured Nothing Gained” but when it comes to our hard earned money that can be at times easier said than done. Most people have a certain tolerance level when it comes to taking risks with their money…. For instance if I said to you we have a good chance of making 20% return on your money it may excite you, but on the flip side if I tell you that same investment has a chance of losing 20% over that same period would you still invest?

WHEN IT COMES TO INVESTING ALWAYS USE THE KYC RULE AND OR AN INVESTOR PROFILER TO DETERMINE YOUR CLIENT LEVEL OF RISK TOLERANCE!

Please note this is for informational purposes only and must not be copied or distributed without written consent from Allen Wong and Associates. Every effort has been made to ensure accuracy, however we are not liable for any errors or omissions

allen wong & associates

DOES YOUR LIFE INSURANCE PAY YOU INTEREST AND GIVE BACK ALL YOUR PREMIUMS PAID TO YOUR ESTATE?

IF WE CAN GUARANTEE YOU AN 11.55% RATE OF RETURN ON YOUR DEPOSITS AND PAYOUT A DEATH BENEFIT TO YOUR BENEFICIARES ON TOP OF THAT RETURN WOULD YOU BELIEVE ME? Example based on a 70 year old female, with a $100,000 death benefit

12.91% $159,735 $3.982 84 11.55% $159,735 $3.982 85 14.53% $155,752 $3.982 83 16.52% $151,770 $3.982 82 18.97% $147,788 $3.982 81 22.07% $143,805 $3.982 80 26.10% $139,823 $3.982 79 31.47% $131,858 $3.982 78 38.95% $127,876 $3.982 77 49.94% $123,894 $3.982 76 67.32% $119,912 $3.982 75 98.16% $115,929 $3.982 74 164.37% $111,947 $3.982 73 373.08% $107,965 $3.982 72 2511.11% $103,982 $3.982 71

Rate of Return on Deposits Estate Benefit Annual Deposit Age

allen wong & associates

RRSP LOANS COMPARISONS

AGF OFFERS BETTER RATES ON LOANS 2 YEARS OR LESS, WHILE B2B BETTER ON LONGER TERM LOANS!

Please note this is for informational purposes only and must not be copied or distributed without written consent from Allen Wong and Associates. Every effort has been made to ensure accuracy, however we are not liable for any errors or omissions

allen wong & associates

THE VALUE OF CAPITAL PROTECTION AT DEATH OFFERED BY SEGREGATED FUNDS

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allen wong & associates

THE VALUE OF BYPASSING PROBATE FEES!

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allen wong & associates

STAYING INVESTED IN ROUGH TIMES! TRIED TESTED AND TRUE!

Since 1945, there have been 10 recessions. On average, these recessions have lasted about 12 months, and the market has bottomed about six months into the recession. Twelve months after hitting a bottom, the market was,

• n average, 36 percent higher.

In addition consider the following Ibbotson Associates research from late 2002, which highlights the risk of attempting to time the stock market over the previous 20 years. It concludes that investing $1 in stocks (S&P 500) at year-end 1981 grew to $17.06 by year-end 2001. But, missing the best 20 months of stock returns meant that the $1 grew to only $3.06

Please note this is for informational purposes only and must not be copied or distributed without written consent from Allen Wong and Associates. Every effort has been made to ensure accuracy, however we are not liable for any errors or omissions

allen wong & associates

THE ADVANTAGES OF CONTRACT BASED DEPOSITS VS. DEPOSIT BASED CONTRACTS!

Sounds like a mouthful! However the concept is very simple, today most carriers offer Deposit Based Segregated Funds Contracts, meaning your guarantee is based on the date of each individual deposit. For example I deposit $100,000 today and $100,000 a year from now, each deposit has it’s own 10 year guarantee or maturity date. The few carriers that still

• ffer contract based deposits such as Empire Life, Equitable Life and Standard Life will take those same to deposits made

a year apart and the maturity will be guaranteed on exactly the 10 the anniversary from the 1st deposit. The table below summarizes. Deposit #1 Deposit #2 Maturity Deposit #1 January 1st, 2019 $100,000 Deposit January 1st, 2018 $100,000 Deposit January 1st, 2009 $100,000 Deposit January 1st, 2008 $100,000 Deposit

Deposit Based Contract

January 1st, 2018 $100,000 Deposit January 1st, 2018 $100,000 Deposit January 1st, 2009 $100,000 Deposit January 1st, 2008 $100,000 Deposit

Contract Based Deposits

Maturity Deposit #2

As we notice the Contract based deposits mature at the same time while the deposit based contracts have separate maturity dates. This can be very advantageous for clients who want to be aggressive in their investments and make deposits in the final year or two of their maturity!

Please note this is for informational purposes only and must not be copied or distributed without written consent from Allen Wong and Associates. Every effort has been made to ensure accuracy, however we are not liable for any errors or omissions

allen wong & associates

THE POWER OF DOLLAR COST AVERAGING!

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THE POWER OF DOLLAR COST AVERAGING! CONT.

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allen wong & associates

INFLATION RISK!

WHAT WILL $1000 BUY YOU 25 YEARS FROM TODAY IF INFLATION AVERAGES 4%

Inflation can have significant effects on savings especially at the time when needed most near retirement if not invested properly in the accumulation years!

Please note this is for informational purposes only and must not be copied or distributed without written consent from Allen Wong and Associates. Every effort has been made to ensure accuracy, however we are not liable for any errors or omissions

allen wong & associates CANADA PENSION PLAN AND OLD AGE SECURITY AMOUNTS 2008

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allen wong & associates

Net Value at Year End $1,226 Net Value at Year End $1,437 Consider Each Of The Following Markets (Bull, Bear, and Crab) $100 Monthly PAC Same Segregated Fund Very Different Results! Net Value at Year End $1,590

Please note this is for informational purposes only and must not be copied or distributed without written consent from Allen Wong and Associates. Every effort has been made to ensure accuracy, however we are not liable for any errors or omissions

allen wong & associates

WHAT ARE THE MINIMUMS WHEN IT COMES TO RRIF WITHDRAWALS?

****Anyone with a registered retirement savings plan (RRSP) has until the end of the year in which he or she turns 71 to establish a registered retirement income fund (RRIF) -- there's no minimum age for doing so.

Therefore someone who deposits $100K into a RRIF at age 71 must withdrawal 100K x 7.38% or $7,380 by years end

There is no legal limit on the maximum that can be withdrawn. All RRIF withdrawals must be added to the plan holder's taxable income The minimum-withdrawal rules apply to each RRIF held The withdrawal for a given year must be made by December 31 of that year.

Please note this is for informational purposes only and must not be copied or distributed without written consent from Allen Wong and Associates. Every effort has been made to ensure accuracy, however we are not liable for any errors or omissions

allen wong & associates INSURED ANNUITIES OR “BACK TO BACK STRATEGY”

Many investors approaching or in retirement age invest their non-registered funds in bonds, GICs, treasury bills, savings accounts and other low-risk investments. While these investments ensure safety of principal, their after-tax returns are generally quite low. There is one often-overlooked alternative that can allow you to increase your after-tax return without eroding the capital available to your estate. This investment is called an "Insured Annuity" or "Back-to-Back" Strategy.

This example is based on a 70 year old female who has $200,000 to invest, the example shows the 2

• utcomes if she chooses

to invest in GIC’s only or if she deploys the Insured Annuity or “Back To Back” Strategy!

Please note this is for informational purposes only and must not be copied or distributed without written consent from Allen Wong and Associates. Every effort has been made to ensure accuracy, however we are not liable for any errors or omissions

allen wong & associates

2 WAYS TO BE MORTAGE FREE SOONER

Tip #1 Pay More Frequently

Even small amounts applied to your mortgage principal can make a big difference to the amount of interest you pay over the life of the mortgage. Prepayments also shorten your amortization, meaning you’ll be mortgage-free sooner. Two of the most effective and popular strategies for paying off your mortgage faster are to pay more frequently and to make a lump sum prepayment.

If you’re making regular monthly or semi-monthly payments, consider switching to accelerated weekly, biweekly, or semi-monthly payments. Doing so means that you end up making the equivalent of an extra month’s payment each year. For example, here’s what you’ll save with a $250,000 mortgage at 5.99% amortized over 25 years: Monthly payment (12 payments/year): $1,598 Total interest cost over the life of the mortgage: $229,421 Accelerated bi-weekly payment (26 payments/year): $799 Total interest cost over the life of the mortgage: $187,014 Total Potential Interest Savings: $42,407

Tip #2 Make a Lump Sum Payment

Whenever you have extra money — such as a bonus from your employer or a tax refund — applying it to your mortgage may be

• ne of the best investments you can make, especially if it’s early in

your amortization schedule. The earlier you pay, the greater the impact. In some cases you can prepay as much as 15% or 20% of your

• riginal mortgage balance each year of your mortgage, without

penalty.* These prepayments are applied directly to the mortgage principal. For example, by prepaying $2,000 every year on a $250,000 mortgage at 5.99% amortized over 25 years,

you save $51,365 in interest costs and will be mortgage-free about four and a half years sooner.

Please note this is for informational purposes only and must not be copied or distributed without written consent from Allen Wong and Associates. Every effort has been made to ensure accuracy, however we are not liable for any errors or omissions

****Mutual Funds Non-registered accounts with joint ownership and right survivorship only (all provinces except Quebec). Registered accounts can bypass probate when a beneficiary is named.

allen wong & associates

Please note this is for informational purposes only and must not be copied or distributed without written consent from Allen Wong and Associates. Every effort has been made to ensure accuracy, however we are not liable for any errors or omissions

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HOW MUCH DO YOU WANT TO RETIRE WITH?

Based on Male Age 25, $50,000 Annual Income Investing 5% or ($5,000 Annually) of Income Inside An RRSP at 5% Rate of Return To Age 65

Please note this is for informational purposes only and must not be copied or distributed without written consent from Allen Wong and Associates. Every effort has been made to ensure accuracy, however we are not liable for any errors or omissions

allen wong & associates

Based on Male Age 25, $50,000 Annual Income Investing 10% or ($10,000 Annually) of Income Inside An RRSP at 10% Rate of Return To Age 65

HOW MUCH DO YOU WANT TO RETIRE WITH?

Please note this is for informational purposes only and must not be copied or distributed without written consent from Allen Wong and Associates. Every effort has been made to ensure accuracy, however we are not liable for any errors or omissions

allen wong & associates

Based on Male Age 25, $50,000 Annual Income Investing 5% or ($5,000 Annually) of Income Inside An RRSP at 10% Rate of Return To Age 65

HOW MUCH DO YOU WANT TO RETIRE WITH?

Please note this is for informational purposes only and must not be copied or distributed without written consent from Allen Wong and Associates. Every effort has been made to ensure accuracy, however we are not liable for any errors or omissions

allen wong & associates

Based on Male Age 25, $50,000 Annual Income Investing 10% or ($10,000 Annually) of Income Inside An RRSP at 5% Rate of Return To Age 65

HOW MUCH DO YOU WANT TO RETIRE WITH?

Please note this is for informational purposes only and must not be copied or distributed without written consent from Allen Wong and Associates. Every effort has been made to ensure accuracy, however we are not liable for any errors or omissions

allen wong & associates

Please note this is for informational purposes only and must not be copied or distributed without written consent from Allen Wong and Associates. Every effort has been made to ensure accuracy, however we are not liable for any errors or omissions

allen wong & associates

THE IMPORTANCE OF NAMING A BENEFICIARY SAMPLE ESTATE IN ONTARIO

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VS. VS.

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INVEST TODAY OR WAIT TILL TOMMOROW?

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MCCSR MINIMUM CONTINUING CAPITAL AND SURPLUS REQUIREMENT AND INSURANCE CARRIER RATING

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Ratings And MCCSR Percentage Continued On Next Slide

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Please note this is for informational purposes only and must not be copied or distributed without written consent from Allen Wong and Associates. Every effort has been made to ensure accuracy, however we are not liable for any errors or omissions

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Please note this is for informational purposes only and must not be copied or distributed without written consent from Allen Wong and Associates. Every effort has been made to ensure accuracy, however we are not liable for any errors or omissions

PROVEN TAX SAVINGS IDEAS

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Please note this is for informational purposes only and must not be copied or distributed without written consent from Allen Wong and Associates. Every effort has been made to ensure accuracy, however we are not liable for any errors or omissions

allen wong & associates

allen wong & associates

Please note this is for informational purposes only and must not be copied or distributed without written consent from Allen Wong and Associates. Every effort has been made to ensure accuracy, however we are not liable for any errors or omissions

allen wong & associates

Please note this is for informational purposes only and must not be copied or distributed without written consent from Allen Wong and Associates. Every effort has been made to ensure accuracy, however we are not liable for any errors or omissions