What An Investment!

Suppose you have a bond portfolio.  Suppose further that you don’t intend to spend either the income or the capital.   Suppose further still that you are taxable and do not enjoy that.

I am here to offer you an alternative investment vehicle that provides:

  1. A balanced fund.  More than 80% investment grade bonds and mortgages
  2. Another 15% to 20% in real estate and high grade equity investments
  3. Professional management by a giant financial institution
  4. MER less than 20 basis points
  5. Collateral value if you should need it
  6. A bump in returns if bio-tech succeeds in extending life
  7. A bump in returns if data processing and networks reduce business transaction costs.
  8. A bump in returns if your fellow investors decide to move on to something else
  9. A huge bump in returns if you die before your time.
  10. No tax as your values grow and none at death either.

All in, you could expect to make around 5% after taxes in today’s interest environment and if you live a bit longer than normal life expectancy.  More than that if you die sooner.

There is such an investment and if it was anything other than participating life insurance, we would need security guards to keep the people orderly while they wait in line to buy some.

This form of life insurance is not for everyone, but for those that match its fundamentals, it is beyond a good investment.  Being life insurance though, people treat it the way some children treat bananas.  “I don’t need to taste them to know I don’t like them.”

Life insurance is tactic to address the strategy of having enough cash in your estate.  Investigate before you dismiss it.  It is typically the least expensive way to put cash there.


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Don Shaughnessy is a retired partner in an international public accounting firm and is presently with The Protectors Group, a large personal insurance, employee benefits and investment agency in Peterborough Ontario. Contact: don@moneyfyi.com  

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