Newsletter

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June 2020

Property Tax Deferment

I bet you have questions. Are you wondering why you might decide to defer? 

2 ways to qualify...

REGULAR PROGRAM

Any homeowner on title that is:

55 or older during the current year or

A surviving spouse of any age or

A person with disabilities

 

  • Registered owner of principle residence

  • Canadian citizen or permanent resident

  • Have lived in BC for over one year

  • Have paid previous years' property taxes, utilities, penalties, and interest

 

  • Have fire insurance policy

  • Have at least 25% equity of property's assessed value

  • Annual simple interest: Prime-2%

  • $60 one-time administration fee

  • $10 annual renewal fee

  • Must repay deferred property taxes with interest upon land title change, such as sale of home

FAMILIES WITH CHILDREN

Any homeowner on title that is financially supporting:

A child under age of 18 or

A child of any age with disabilities

 

  • Registered owner of principle residence

  • Canadian citizen or permanent resident

  • Have lived in BC for over one year

  • Have paid previous years' property taxes, utilities, penalties, and interest

  • Have fire insurance policy

  • Have at least 15% equity of property's assessed value

  • Annual simple interest: Prime rate

  • No administration fee

  • No annual renewal fee

  • Must repay deferred property taxes with interest upon land title change, such as sale of home

The Strategy...

Don't have kids or don't want to leave them with more cash?  Planning to live forever? No problem!

 

Use the cash value from the life insurance policy while you're alive for:  an emergency fund, additional retirement income, paying annual property taxes, charitable donations, or anything else!

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The best thing is, by deferring property taxes you're getting more

while paying no extra money out of pocket!

March 2020

Learn more about guarantees with segregated funds

We all love the idea of earning a great return on our investments, but how comfortable are we when the markets take a turn? For some, the ups and downs are just part of market life. Yet for others, the ebb and flow can cause a lot of sleepless nights.

If you are looking for a little security, a segregated fund may be the right investment choice for you. Segregated funds, or seg funds for short, are similar to mutual funds in that your investment is pooled with other investors’ assets and invested for you. A fund manager is responsible for selecting the investments that make up the fund. Where segregated funds differ is in the guarantee.

Only offered through insurance companies, segregated funds include an insurance contract that protects your investment and even makes it easy and efficient to pass your assets on to a beneficiary or beneficiaries. Here are just some of the advantages of investing in a segregated fund.

  • Death Benefit Guarantees: 75% to 100% of your original investment (minus withdrawals) is guaranteed upon your death.

  • Deposit Maturity Guarantees: 75% to 100% of your original investment is guaranteed upon reaching the contract’s deposit maturity date. 

  • Potential creditor protection in the event of bankruptcy or lawsuit.

  • Excluded from probate. 

  • Private and confidential beneficiary designations.

  • Growth potential of the markets with access to investments from around the world

If I pass away before the maturity date, is there a death benefit guarantee?

Whether your contract reaches the deposit maturity date or you die before maturity, you (or your estate) would receive the higher of the guaranteed value or the market value. The guaranteed value is 75% or 100% of your original investment (minus withdrawals), depending on the option you choose. Depending on the performance of the funds held in the segregated fund, the market value may be higher than what you’ve invested.

I have a will, why does it matter if my investment bypasses probate?

Probate can be a lengthy and expensive process. Instead, your segregated fund value is paid out to your beneficiaries quickly, usually within a month or so and, there are no probate fees to pay, reducing the stress on your loved ones. Segregated funds are a great option for estate planning.

How do segregated funds protect against lawsuits and bankruptcy?

If you name a family member as your beneficiary, your assets may be protected from your creditors. This feature is especially important for self-employed professionals and small business owners who want to protect their personal holdings from professional liability.

What investments are available with segregated funds?

In addition to these benefits, there is some other information that would be useful to know. For one, you might ask what sort of investments make up a segregated fund? Just like a mutual fund, a segregated fund can be extremely varied. You can find seg funds that are composed almost entirely of cash and bonds, and you can also find seg funds that are entirely aggressive, small-capital investments. The choices are endless.

 

Segregated funds can be used for a variety of saving needs, including:

  • Non-Registered Savings Plan

  • Tax-Free Savings Account (TFSA)

  • Retirement Savings Plan (RSP)

  • Retirement Income Fund (RIF)

  • Locked-In Retirement Account (LIRA)

  • Life Income Fund (LIF)

  • Spousal Retirement Savings Plan (SRSP)

  • Spousal Retirement Income Fund (SRIF)

  • Locked-in Retirement Income Fund (LRIF)

  • Prescribed Retirement Income Fund (PRIF)

  • Restricted Locked-in Savings Plan (RLSP) *For Federally regulated plans only*

  • Restricted Life Income Fund (RLIF) *For Federally regulated plans only*

 

With segregated funds, add another investment vehicle to your repertoire, and help yourself on the way to building a fully diversified investment portfolio! 

© 2020 Firenze Financial Services Inc.

205 28th Street East

North Vancouver, BC