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Leveraging Investments

While this process is not for everyone, it may be of interest to you. There are different approaches to leveraging that are widely accepted in today’s marketplace.

Certain select carriers allow you to leverage you “open account” Segregated Fund investments. This means that the carrier will loan you a multiple of your investment capital. This can increase your investment capital by a ratio of 2:1 or even 3:1. It can be a highly effective strategy for certain select clients. Contact us for more information on this concept.
Another popular strategy is to leverage you other assets, such as your home. As an example, if you have an “open” portfolio, you could cash it out (creating possible tax advantages) and use the proceeds to pay off your mortgage. You could then re-mortgage and reinvest the mortgage funds in a new “open” portfolio. The advantage? – Now your mortgage payments are tax-deductible!

We utilize state of the art planning software to help your decision making process by identifying risk/reward factors and performing a break even analysis. While this concept is not for everyone, it can be a highly effective strategy for certain select clients. Contact us for more information on this concept.
There is also a very unique Universal Life plan that has a built-in facility to leverage up-front. This concept can increase your “open account” capital by 20% to 150% over a period of a few years by taking advantage of certain income tax deductions. If you have non-registered investments today, we can show you how to flow them through a very unique tax advantaged financial product from RBC Insurance. This concept enables you to “disassemble” your portfolio, and then re-assemble it, creating significant tax deductions in the process.

We call this our Yield Enhancement Strategy (Y.E.S.).

Y.E.S. Introduction

One of the often overlooked ways to increase investment returns is to leverage the unused tax sheltering capacity in universal life insurance policies. With this in mind, RBC Life Insurance has created a specially designed Investment Credit Facility (ICF) for owners of Security Fund life insurance policies.

The ownership of a Security Fund policy combined with the new ICF can be used to enhance the after-tax yield from an investor’s portfolio without the investor having to take on many of the risks normally associated with other leverage strategies. This Yield Enhancement Strategy (YES) allows the investor to benefit from the tax shelter of a universal life insurance policy while still retaining the freedom of direct ownership and control of the investment portfolio.

Many of the traditional pitfalls have been eliminated with this market leading strategy, featuring guaranteed returns and interest rates.

Y.E.S. can be used to enhance the after-tax yield from any investment portfolio whether comprising fixed income securities, equities, mutual funds or any other asset class. It is also a very effective retirement income maximization tool as well as an estate multiplier.