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Retirement Planning

A personal pension plan that funds itself!*

These days, many people are interested in real estate as an investment. The idea is to arrange a mortgage, buy a house and rent it out. Over time, the rent is supposed to pay off the mortgage. The rental income continues on and acts much like a pension for life.

Of course owning an income property is never that simple. Typically an individual would need 20% as a down payment. Repairs, maintenance, property taxes and shortfalls have to be paid. Finally, tenants have to be found who will pay their rent on time and respect the property.

A simpler and more reliable program to create a Personal Pension Plan that funds itself*

In most cases one can borrow 100% of the money required to buy an income portfolio that pays off the loan in seventeen years while receiving income from the portfolio capable of covering interest expenses (see “How This Works”).* The portfolio will lose value if the portfolio does not achieve returns equal to the income it distributes

What Benefits Can One expect from this type of investment?

This type of portfolio acts very much like an income property and has further advantages. It is professionally managed and is diversified with at least thirty investments. As such, it may be potentially safer than a one or two income property approach.

Unlike an income property, there are no property taxes, maintenance or tenants that need to be managed. However, like an income property there may be times when one has to add funds to ensure the success of this program. There may be income tax implications in some years and upon full, or partial, redemption of the portfolio.

How this works

We can help arrange 100% of the financing for the investments. The investments themselves are the collateral.

Assume that one borrows $100,000 with 5% interest cost. The interest cost of $5,000 is tax deductible. At a marginal tax rate of 40%, the net cost would be $3,000. Assuming the portfolio pays income (a cash distribution) of 8% ($8,000), with no income tax obligation in the early years, the net income would be $5,000 per year ($8,000 – $3,000). This would pay off the loan in 17 years. With all other variables remaining the same, if the portfolio paid an income of 6%, the loan could be paid off in 24 years.


This is a bold and innovative program that has significant advantages over a real estate approach. Although the program has internal checks and balances, regular reviews with us are essential for peace of mind and a profitable experience. To see if this is appropriate for your situation, speak to us.