MineralFields Flow-Through Limited Partnerships are ideal investments to help investors achieve maximum tax savings with reduced risk to their capital. Here is a situation where investors benefit from flow-flow through investing:
SITUATION— AN INVESTOR HAS A LARGE RSP
SUGGESTION–Start an RSP meltdown strategy using a MineralFields Flow-Through Limited Partnership
EXAMPLE*
An investor with a $100.000 taxable income currently holds a $250,000 RSP:
Total taxes payable = $26,491
Take $25,000 out of the RSP
Taxable income increased to = $125,000
Net taxes payable = $43,773
Invest the $25,000 in a MineralFeilds FTLP:
Net taxes payable = $24,770
Immediate tax savings = $1,721
After the MineralFields FTLP is rolled over, the investero could choose to take out the $25,000 where cash in hand would be $21,689 after tax instead of only $16,000 if withdrawn from the RSP.
HOW IT WORKS
-An investor can cash out a portion of their RSP, usually 5% to 10% of the total RSP portfolio (a withholding tax exemption can be requested by using tax form T-1213
-Invest this amount in MineralFields FTLP
-The deduction received from the FTLP investment more than covers the RSP cash out
-When the FTLP is rolled over, transfer tax from from our Explorer Series Fund to a more conservative fund like our Flex Dividend and Income Growth ™ Series Fund from our Pathway Multi Series corporate class mutual funds.
-The investment continues to grow tax free and matches a more conservative risk tolerance
-Take another portion of the RSP and repeat the process
-If the investor needs to access the funds they can redeem them from their Pathway Fund and pay tax on capital gains instead of paying on gross income
MAY
About the Author:
I have been in the business since 1998. Started my career with Sunlife Financial and then progressed to working with a local financial institution for 5 years. As an investment broker I have access to a variety of products not available at your local financial institution. Let me illustrate how I can combine different products that can help you grow your investments and secure your retirement. Finances affect every part of a person’s life. It just makes sense to have a comprehensive plan of action.