CLUTCH AVENUES - A Wealth Transfer Strategy

Clutch Avenues is a financial strategy designed to maximize the tax efficiency of your investments while creating and preserving wealth throughout your retirement years.

This strategy has been very successful in culminating the two sides of investing:

1) "The What": Mutual Funds, Segregated Funds, Insurance, SWPs and other accumulation products.

2) "The How": Strategy and Active Managment

into a powerful and efficient vehicle for your investments.

Who is Clutch Avenues for?

1. High Income Earners

If you earn a high income, you might find the RRSP contribution limits very restrictive. A non-registered, tax advantaged strategy can help you achieve higher annual savings to maintain a higher income level in the future.

2. Investing Beginners

Clutch Avenues may be suitable for you because you have a long investment horizon. This strategy helps establish a disciplined savings routine while maximizing your investments at a time when monthly savings may be smaller.

3. Those 10 to 15 years away from retirement

You might not have saved as much as you would have liked over the years. Or, perhaps your financial plan shows you will need more to retire in comfort for retirement. Clutch Avenues can allow you to make up for those lost years and achieve your retirement goals.

4. Charitable donations as part of your financial plans

If you are donating now or plan to donate in the future, Clutch Avenues can increase the amount you are able to donate while offering you flexibility on the amounts and frequency of your donations.

5. RRSP investors - "The RRSP/RRIF Meltdown"

If you have been diligent and saved a RRSP nest egg, then you are in a great position to take your investments to the next level.Clutch Avenues can dramatically increase your net worth by moving your heavily taxed investments to a preferred tax vehicle.

6. Business owners with retained earnings

With Clutch Avenues, you can use your corporate earnings to generate a personal, non-registered, tax efficient asset. Plus the type of contract used allows the portfolio to be safeguarded against creditors, protection for the capital, the ability to avoid estate fees and diversification among your investments.

Email or call us to arrange for a consultation about the right solution for your personal and corporate investments. Clutch Financial Solutions Telephone: 905.361.1590

MORE SOLUTIONS

Corporate Class Structure

The typical client for corporate class funds would be a higher net worth individual who has used up all available room in his or her registered plan and who wants to take an aggressive approach in building an unregistered investment portfolio. Why aggressive? The answer is that the whole point of sector funds is to enable the client to move from fund to fund without triggering taxes on capital gains.*

Systematic Withdrawl Plan (SWP)

Two main reasons for using a SWP are to meet living requirements (usually when retired) or to accomplish tax planning purposes. It is a service that some mutual funds offer where they pay cash distributions to investors at set intervals

Individual Pension Plan (IPP)

A retirement savings plan that allows bigger tax-deductible contributions than an RRSP. It is designed for people with higher incomes. It works like a defined benefit plan and must follow Canada's pension plan rules.

Back to Back / Triple Back to Back Annuity Strategy

The simultaneous issue of a life annuity with a non-guaranteed period and a guaranteed life insurance policy [usually whole life or term to 100].

Retirement Compensation Arrangements (RCA)

A retirement savings plan that lets a company add to the pensions of higher paid employees. You don't pay tax on the money in your account until you take it out.

T-SWP

A T-SWP is a free cash-flow service that allows you to tap into your non-registered investments in a more tax-efficient way. It can serve as an alternative to a traditional systematic withdrawal plan (SWP), or a complement to other income strategies like GICs.

Most of the cash flow you receive through T-SWP is not taxed since it is treated as part of the money that you originally invested. This allows you to defer tax until you deplete your initial investment or decide to sell the investment.

* From Globe & Mail columnist Rob Carrick
..Other definitions provided by InvestorEd