It was October of 2008, when we received a call from an individual asking for our help.
She was 71 years of age with $200,000 invested. Her concern was about the poor performance of her portfolio and the lack of service she was receiving. At the same time, she told us that she was paying $300 a month for “investment advice” to her current advisor.
We deposited $200,000 into IncomePlus on her behalf on 16 October 2008. Immediately, she received a 5% guaranteed withdrawal benefit bonus on her deposit, and no fees were charged.
You will remember the sudden downturn in the market in the last quarter of 2008? Who could forget! By our careful selection of funds, as at 31 December 2008, she had not lost one cent, and in fact, had earned $2,206.34, about 1.2% return, in the worst quarter we have ever experienced.
In 2009, her IncomePlus fee was less than one half of 1% (.05%).
In 2010, her IncomePlus fee was less than one half of 1% (.05%).
Over the two years that we have been stewards of her investments, she has yet to pay fees in total what she paid in only one year with her previous advisor.
And as at the 8th December 2010, she has enjoyed a return of 11.0%. since inception with us!
We maintain that retirement income is more important than retirement assets. That is true in this case as well.
There is real peace of mind knowing that the guarantees include guaranteeing your capital in the event of death and that your income is available when care is needed.
Either through the death benefit guarantee, or the guaranteed lifetime withdrawal amount, she can never lose the money she has invested with us.
And, in a Meeting this week, we have enhanced the benefits for her. Our client had some capital losses from investments made with another advisor. Because of the growth in our fund, her $200,000 is now worth $248,467.
We have obtained permission for her to reset her guarantees from the $200,000 platform up to $248,467.
That is her new death benefit guarantee, as well as her new guaranteed withdrawal amount.
The capital losses previously incurred can be used to offset the taxes against the capital gain triggered by this change.
Because we are redepositing her funds, at the end of this year, her guaranteed withdrawal amount becomes $13,000 per year up from the $11,000 previously set. That is an increase of income, guaranteed for life, of 18%. When did you ever get a raise of 18%?
There is no other product we work with that is designed to provide this peace of mind.
All of the guarantees, far less fees, our service and ongoing commitment to review performance far outweigh the alternative that she considered two years ago.
She was so upset with the advisor she had been with; she wanted to put the money into a money market account. The interest she would have earned since then would have been $6,080.79.
It is said that the happiest people in the world are the ones that have peace of mind.
Our client not only has peace of mind, but over $42,000 more in the two years we have provided her income and personal asset management.
That is the truth.