dynamic series t
DESCRIPTION
DYNAMIC SERIES T. Name Tile Company DATE. “Taxes have grown over the past 49 years to the point that government is now the largest expenditure facing a family” Niels Veldhuis , Fraser Institute senior economist and co-author of the Canadian Consumer Tax Index, 2011. - PowerPoint PPT PresentationTRANSCRIPT
DYNAMICSERIES T
NameTileCompanyDATE
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“Taxes have grown over the past 49 years to the point that government is now the largest expenditure facing a family”
Niels Veldhuis, Fraser Institute senior economist and
co-author of the Canadian Consumer Tax Index, 2011
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TAXES VERSUS THE NECESSITIES OF LIFE
Average Con-sumer Price Index
Clothing Food Shelter Average Cash Income
Consumer Tax Index
0%
200%
400%
600%
800%
1000%
1200%
1400%
1600%
1800%
Percentage Increase Since 1961
THE AMOUNT CANADIANS PAY IN TAX HAS GROWN THE MOST
Source: April 2011, Fraser Institute
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WHO SHOULD USE SERIES T
INVESTORS WHO:
Want additional income Want to defer tax on income
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DYNAMIC SERIES T
1 PREDICTABILITY Consistent income monthly
2 TAX PLANNING Defer taxes to a later date when in a lower tax bracket
3 GROWTH OPPORTUNITY
Because taxes are deferred more of the investment keeps growing
4 FLEXIBILITY Choice of income level: 4% to 8%
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INTEREST INCOME DIVIDEND INCOME CAPITAL GAINS RETURN OF CAPITAL
DIFFERENT TYPES OF INCOME = DIFFERENT LEVELS OF TAXATION
Top marginal tax rate in Ontario 46.41%.Source: Ernst & Young.
Taxes paid Income kept
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DIFFERENT TYPES OF INCOME = DIFFERENT LEVELS OF TAXATION
Interest Income Dividend Income Capital Gains Return of Capital$0
$1,000
$2,000
$3,000
$4,000 $3,732
$2,996
$2,604
$2,000
Of the four forms of income, return of capital is the most tax efficient.
Taxes paid
Income kept
Top marginal tax rate in Ontario 46.41%.Source: Ernst & Young.
MORE TAXES = MORE NEEDS TO BE WITHDRAWN FOR DESIRED CASHFLOW
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ACCESSING ROC FOR TAX EFFICIENT INCOME
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
Growth on Capital (taxable) Capital Invested (non taxable)
Income is taken from the original investment, which is tax free
WHAT IS RETURN OF CAPITAL
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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$0
$100
$200
$300
$400
$500
SERIES T FOR VARIOUS GROWTH SCENARIOS
The above graphs are for illustrative purposes only
WITHDRAWAL RATE IS EQUAL TO THE RETURN OF THE INVESTMENT5% WITHDRAWAL RATE AND 5% RATE OF RETURN
Monthly Cash Flow (RHS)
Capital Invested (ACB)
Year
Growth on Capital Invested
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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$0
$100
$200
$300
$400
$500
SERIES T FOR VARIOUS GROWTH SCENARIOS
INVESTMENT RETURN IS HIGHER THAN WITHDRAWAL RATE5% WITHDRAWAL RATE AND 6% RATE OF RETURN
The above graphs are for illustrative purposes only
Year
Capital Invested (ACB)
Monthly Cash Flow (RHS)
Growth on Capital Invested
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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$0
$100
$200
$300
$400
$500
SERIES T FOR VARIOUS GROWTH SCENARIOS
WITHDRAWAL RATE IS HIGHER THAN THE RETURN OF THE INVESTMENT5% WITHDRAWAL RATE AND 4% RATE OF RETURN
The above graphs are for illustrative purposes only
Monthly Cash Flow
Growth on Capital Invested
Capital Invested (ACB)
Year
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WHY CHOOSE DYNAMIC SERIES T?
A broad lineup of investments From fixed income to balanced, to
Canadian or global equity funds, Dynamic Corporate Class gives you choice; you have a broad range of investment options
An award-winning portfolio management team With Dynamic Corporate Class, you
benefit from the strength of industry-leading portfolio management
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SERIES T + CORPORATE CLASSA
sset
s ($
)
SERIES TCORPORATE CLASS
DECUMULATIONACCUMULATION
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DYNAMIC CORPORATE CLASS
When you invest in a corporate class mutual fund it is under the umbrella of the corporation
Each mutual fund is a part – or a share – of the corporation
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ABOUT DYNAMIC FUNDS
Dynamic Funds began life as a small investment club in Montreal in 1957 and has since grown into an award-winning family of funds, encompassing more than 80 investment products with the loyal support of Financial Advisors and Investors nationwide
We offer a comprehensive range of products and services that span every major sector, asset class, geographic region and investment discipline
Today, Dynamic Funds is one of the largest fund families in Canada, bringing together some of the most astute investment professionals in the country
THANK YOU!
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Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Dynamic Funds® is a division of Goodman & Company, Investment Counsel Ltd. Goodman & Company, Investment Counsel Ltd. is an affiliate of DundeeWealth Inc.
IMPORTANT INFORMATION