Reason 1:
Most financial advisors don’t know that an account like this exists.Nor, do they know how to set it up to be legally tax-free for the account holder.
Reason 2:
Most financial advisors recommend financial vehicles that the company they've contracted with… tells them to promote.
As a result, less than 0.07% of Canadians have what we call a "TFRIA" account set up—while more than half the population has a taxable RRSP or similar tax-deferred retirement account - TFSA.
With a Fully Taxed RRSP:
❌You pay taxes on growth - This happens the minute you withdraw your money.
❌Your growth & principal is not guaranteed - Most RRSPs rise & fall in lockstep, with the market.
❌Your money is not liquid - If your decide to make early withdrawals can attract penalties.
❌Affects your retirement income - Earnings from RRSPs negatively impacts how much you make from old age income. The higher your RRSP income, the lower your old age income from the government.
❌Your lifestyle is not protected - All your money goes to investments and non to your life insurance needs.
With a TFSA:
✅ You don't pay taxes on growth, but...
❌You can only deposit $6,000/yr
❌Growth & principal isn’t guaranteed - like most RRSPs
✅Affects your retirement income - Earnings from TFSAs do not negatively impact how much you make from old age income.
❌Your lifestyle is not protected - All your money goes to investments and non to your life insurance needs.
With a TFRIA:
✅You never pay taxes on growth*:
TFRIA allows you to save & grow money in a tax-effective manner. This is 100% legal way to grow your wealth tax-free if your TFRIA is set up to be compliant with current CRA tax-code. This will allow you to grow your money faster.
✅You access Tax-Free retirement income:
TFRIA allows you to access your money tax-free in retirement to supplement other sources of incomes.
✅You get permanent life insurance:
Small portion of your contribution goes to payment for lifetime insurance coverage. Keep in mind that with this plan you only contribute for up to 20 years.
✅You get living benefits:
TFRIA allows you to access advance compassionate and disability benefits while you are still alive. This provides you and your family valuable protection during time of sickness, injury, or disability.
✅You have flexibility in contribution room:
You can deposit much more money that the other options because the contribution limits is much bigger - every cent in, grows tax-free.
✅You get flexibility in payment options:
TFRIA allows you to determine how much to pay into your plan and how you want to pay for your premiums.
✅You get protection of your old age income:
Regardless of how much you make in your retirement using TFRIA, your old age income will not reduce.
✅You choose where to invest your money:
You can choose guaranteed growth investment or not.
✅You can easily access your money:
Your account growth and value can be accessed in any amount—at any time—without penalty. You can use the cash value you’ve accumulated in your policy to supplement your income in retirement or during a time of illness.
❌Not available for anyone:
TFRIA is only available for those who qualify.
❌Cost higher than term life insurance:
When compared with pure term life insurance, universal life insurance can look high. But is important to remember major part of the cost goes to investment and you only pay for 20 years.
And there are many more wonderful fiscal things you can do with an account like this...
But!...
With a Fully Taxed RRSP:
❌You pay taxes on growth - This happens the minute you withdraw your money.
❌Your growth & principal is not guaranteed - Most RRSPs rise & fall in lockstep, with the market.
❌Your money is not liquid - If your decide to make early withdrawals can attract penalties.
❌Affects your retirement income - Earnings from RRSPs negatively impacts how much you make from old age income. The higher your RRSP income, the lower your old age income from the government.
❌Your lifestyle is not protected - All your money goes to investments and non to your life insurance needs.
With a TFSA:
✅ You don't pay taxes on growth, but...
❌You can only deposit $6,000/yr
❌Growth & principal isn’t guaranteed - like most RRSPs
✅Affects your retirement income - Earnings from TFSAs do not negatively impact how much you make from old age income.
❌Your lifestyle is not protected - All your money goes to investments and non to your life insurance needs.
With a TFRIA:
✅You never pay taxes on growth*:
TFRIA allows you to save & grow money in a tax-effective manner. This is 100% legal way to grow your wealth tax-free if your TFRIA is set up to be compliant with current CRA tax-code. This will allow you to grow your money faster.
✅You access Tax-Free retirement income:
TFRIA allows you to access your money tax-free in retirement to supplement other sources of incomes.
✅You get permanent life insurance:
Small portion of your contribution goes to payment for lifetime insurance coverage. Keep in mind that with this plan you only contribute for up to 20 years.
✅You get living benefits:
TFRIA allows you to access advance compassionate and disability benefits while you are still alive. This provides you and your family valuable protection during time of sickness, injury, or disability.
✅You have flexibility in contribution room:
You can deposit much more money that the other options because the contribution limits is much bigger - every cent in, grows tax-free.
✅You get flexibility in payment options:
TFRIA allows you to determine how much to pay into your plan and how you want to pay for your premiums.
✅You get protection of your old age income:
Regardless of how much you make in your retirement using TFRIA, your old age income will not reduce.
✅You choose where to invest your money:
You can choose guaranteed growth investment or not.
✅You can easily access your money:
Your account growth and value can be accessed in any amount—at any time—without penalty. You can use the cash value you’ve accumulated in your policy to supplement your income in retirement or during a time of illness.
❌Not available for anyone:
TFRIA is only available for those who qualify.
❌Cost higher than term life insurance:
When compared with pure term life insurance, universal life insurance can look high. But is important to remember major part of the cost goes to investment and you only pay for 20 years.
And there are many more wonderful fiscal things you can do with an account like this...
But!...
Is It “Too Good To Be True,” You Ask?
Nope. It’s very real.
Nope. It’s very real.
In fact, an Account like a TFRIA is not a new investment strategy.
Accounts like these have been used by wealthy individuals and families for over 100 years to build, then pass on fortunes in a legally tax-free environment.
The only question is...
Do You Qualify For A Tax-Free Retirement Income Account?
A TFRIA account is NOT available just to the super-rich… it might be available for you!
A TFRIA account is NOT available just to the super-rich… it might be available for you!
However: an account like this can only be technically set up if you or your family qualify for it.
To discover if you qualify for a TFRIA, take this 30 second survey below.