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Owned Plans |
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L.
D. C. P.
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LEVERAGED
DEFERRED COMPENSATION PLAN
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The
structure of an LDCP depends upon whether
you wish to INCREASE YOUR TAX-FREE INCOME
at the same time, reducing your ESTATE
INSURANCE COSTS.
In either case, two financial institutions
come together, offering a Life Insurance
product and a loans institution offering
a series of loans.
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Uses
of L.D.C.P.:
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1
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Using
an L.D.C.P. for income to augment
your retirement cash flow using
non-taxable loans.
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2
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If
you use the NONTAXABLE LOANS for
INVESTMENT PURPOSES, you can deduct
the Loan Interest from your taxes.
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3
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Use
the L.D.C.P. to pay taxes, since
proceeds offer TAX-FREE death
benefit to your beneficiaries.
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A
RETIREMENT SUPPLEMENTAL TAX FREE INCOME KNOWN AS "LEVERAGED
DEFERRED COMPENSATION PLAN
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L.D.C.P.
allows you to grow a tax sheltered accumulation
fund plus providing a tax-free death benefit
to your beneficiaries or estate (sect.
148 income tax act.)
The income flow will supplement
any other regulated income from Pension
and R.R.S.P.'s or R.R.I.F.'s.
LEVERAGING, involves credit financing
in the form of a tax-free loan from a
credit union, trust or bank using the
cash value as collateral for the loan.
By borrowing each year as your income
dictates you will avoid triggering tax
which would otherwise be payable.
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Interest
and principle
on the outstanding loans will be paid from
the tax-free proceeds from the insurance
contract at death. The amount of loans and
interest will never be allowed to exceed
95% of the contract's cash value, thus ensuring
that you will not be put in the predicament
of tax consequences by default.
This program should be carefully structured
with a company actuary and entered into
with agreements at the time of entry.
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