The Sagacious Saga
of the
Sanguine Sheltered Insurance Investors
Initial Coverage Because of insurance and tax sheltered compounding by investing $22,000 annually for 15 years a young couple in their mid thirties, referred to as 'sheltered insurance investors', can expect an initial coverage of $902,156 to become $1,537,424, versus only $452,413 for the same investment without sheltered insurance.
Retirement Income At age 70, the sheltered insurance investors could draw out net after tax $110,786 year after year versus only $37,080 after tax for the same investment without sheltered insurance investing....
Long Term Care* At age 70, if either of the sheltered insurance investors encountered a long term illness needing long term care, an annual draw of $165,755 tax free would be available versus $37,080 for the same investor without sheltered insurance investing.
Critical Illness* In case a critical illness strikes or one person died at age 70, a draw of $2,109,480 tax free would be available to the sheltered insurance investors plus a remaining insurance amount of $819,360 compared with only $1,000,165 for the same investment without sheltered insurance investing.
*Both cases would leave a $1,000,000 estate at age 99 but sheltered insurance investors would leave substantially more if death occurred earlier.
Estate Maximization If no withdrawals were accessed, the sheltered insurance investment would be worth $17,932,000 tax free to the insured's beneficiaries at age 99 as against only $2,991,302 for beneficiaries of the unsheltered investment. Or, $6,517,057 at age 85 against $1,762,663 for the same investment without sheltered insurance investing.
Rate of Return Assumptions:
Unsheltered investment assumes a 7% (net of commissions or other costs) fully taxable rate of return with a marginal 45% tax rate applicable yields a net compound return rate of 3.85%. Sheltered insurance investing assumes a return of 6% (net of insurance and other costs) and includes an annual bonus interest addition of 1.5% commencing in the 10th year. Complete detail of all costs for both investment options is available upon presentation and appraisal.
How about same saga with lower investment and lower return assumptions?
The Sagacious Saga (part 2)
of the
Sanguine Sheltered Insurance Investors
Initial Coverage Because of insurance and tax sheltered compounding by investing $10,000 annually for 15 years a young couple in their mid thirties, referred to as 'sheltered insurance investors', can expect an initial coverage of $397,034 to become $590,778, versus only $191,569 for the same investment without sheltered insurance.
Retirement Income At age 70, the sheltered insurance investors could draw out net after tax $23,510 year after year versus only $10,380 after tax for the same investment without sheltered insurance investing....
Both cases would leave a $356,374 estate at age 99 but sheltered insurance investors would leave substantially more if death occurred earlier.
Long Term Care* At age 70, if either of the sheltered insurance investors encountered a long term illness needing long term care, an annual draw of $31,543 tax free would be available versus $10,380 for the same investor without sheltered insurance investing.
Critical Illness* In case a critical illness strikes or one person died at age 70, a draw of $574,134 tax free would be available to the sheltered insurance investors plus a remaining insurance amount of $222,527 compared with only $356,374 for the same investment without sheltered insurance investing.
*Both cases would leave a $356,374 estate at age 99 but sheltered insurance investors would leave substantially more if death occurred earlier.
Estate Maximization If no withdrawals were accessed, the sheltered insurance investment would be worth $2,614,723 tax free to the insured's beneficiaries at age 99 as against only $839,820 for beneficiaries of the unsheltered investment. Or, $1,237,949 at age 85 against $555,220 for the same investment without sheltered insurance investing.
Rate of Return Assumptions:
Unsheltered investment assumes a 5% (net of commissions or other costs) fully taxable rate of return with a marginal 40% tax rate applicable yields a net compound return rate of 3.00%. Sheltered insurance investing assumes a return of 4% (net of insurance and other costs) and includes an annual bonus interest addition of 1.5% commencing in the 10th year. Complete detail of all costs for both investment options is available upon presentation and appraisal.
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Data derived is based on an insurance investment offered by a leading well known Canadian financial service group. Depending upon your age and circumstance a like investment may be secured to suit your needs. Results will vary among policies of different insurers owing to differing policy variables. E. & O. E. |
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