How insurance can create tax-free income in retirement
August 16, 2022
Insurance can be an effective tool. Here’s an idea involving insurance that can provide a tax-free source of cash flow in retirement.
Insurance can be an effective tool. Here’s an idea involving insurance that can provide a tax-free source of cash flow in retirement.
When it comes to most forms of insurance, many people understand the importance of having coverage. Whether it’s your car, your home, or other valuable possessions, having insurance means that you’re financially protected should disaster strike.
Tim Cestnick writes: My wife said to me: “Tim, I’ve heard that the sun at the cottage does more damage to your skin than sun in the city”. “I think that’s a myth,” I countered. There are some other myths that come to mind when I think about the cottage. Let me share a few today.
There are tax, estate and other implications when inheriting real estate, even from family.
Naming a beneficiary of a life insurance policy provides a significant benefit in planning and protecting one’s estate. With a named beneficiary, the death benefit is paid directly to the beneficiary and is received tax-free.
Money is on the move from one generation to the next with almost $700-billion in financial assets set to transfer by 2026, according to J.D. Power’s 2021 Canada Full-Service Investor Satisfaction Study. Without appropriate planning, just imagine the tax bill.
Many people spend substantial time and effort putting together an estate plan with their attorney and then throw a wrench in it with last minute changes that can cause big problems down the road.
If you have more money than you’ll need in retirement, consider putting these strategies to use.
A year ago, the projected deficit for 2020 was estimated to be $20 billion. Shockingly, as a result of Covid-19, this projection has risen to over $380 billion by the end of the year.
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