Buy Term Invest The Rest and reduce taxes (Part 2)
As a follow-up to BTITR, this is another example of someone who has a lower monthly budget.
Name: Mr M.
Age: 35
Non-smoker
Budget: $300 per month
Comparison:
BTITR achieves $43,732 more based on 5%p.a returns and $108,986 more based on 9%p.a returns.
On the other hand, BTITR pays $1,246 lesser than ILP to the agent in first year commission.
I would suggest Mr. M to do BTITR and contribute $2,556 (the investment component in "drip in new money": $213.00 x 12 months) and invest from his SRS account. By doing this, he saves about $112 in income taxes for the year, which is 1.25 months' worth of term insurance premium or half month's worth of his $213 investment amount.
This is something which insurance agents selling ILP will NOT (and probably NEVER) share with you.
Feel free to contact waynekohwg@gmail.com for details and clarifications.
As a follow-up to BTITR, this is another example of someone who has a lower monthly budget.
Name: Mr M.
Age: 35
Non-smoker
Budget: $300 per month
Comparison:
BTITR achieves $43,732 more based on 5%p.a returns and $108,986 more based on 9%p.a returns.
On the other hand, BTITR pays $1,246 lesser than ILP to the agent in first year commission.
I would suggest Mr. M to do BTITR and contribute $2,556 (the investment component in "drip in new money": $213.00 x 12 months) and invest from his SRS account. By doing this, he saves about $112 in income taxes for the year, which is 1.25 months' worth of term insurance premium or half month's worth of his $213 investment amount.
This is something which insurance agents selling ILP will NOT (and probably NEVER) share with you.
Feel free to contact waynekohwg@gmail.com for details and clarifications.
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