For people whose wealth is a few million dollars and who will not spend all their money during their lifetime.
Generally, with age, we want to take less risks with our investments, and we think more about an inheritance, because we know that we will not spend all of our money during our lifetime.
The returns on fixed income securities are extremely low (bonds and GICs) which do not even exceed 2% and are 100% taxable. What to do?
Use financial products held by insurers in the form of special life insurance that contributes to the returns of the insurers.
Participating insurers’ contracts are considered fixed income securities because the standard deviation of these investments is below 1%, which is lower than a 10-year Canadian bond. This is prudent management of assets.
This is the most efficient and profitable way to pass on unused assets to beneficiaries by creating this INHERITANCE LEVERAGE.
You can even double the value transmitted by this strategy without any risk.