The sales process will help you to identify clients who can benefit from the tax-efficiency of
T-Class. These may be clients looking for income or those who are considering using a conservative leverage strategy.

Click on each puzzle piece to display more information about each sales point.

1. Identify target markets

Potential T-Class investors include:

Clients in the accumulation phase:

  • T-Class is the ideal payout solution for clients who have non-registered assets invested in CI Corporate Class. As they transition to retirement, assets can be moved to a T-Class version of the same fund without tax consequences or changing the overall investment strategy.

Clients in retirement:

  • Since ROC is not included in the calculation of taxable income, clients can supplement their income without fear of clawbacks of government benefits such as Old Age Security
  • Clients can choose to extend their tax-free ROC period by selecting a conservative payout strategy. A customized payout that is lower than the average rate of return could potentially provide 30 years of tax-free ROC cash flow
  • Taxes are deferred until a later date when clients may be in a lower tax bracket.

Use with other CI products:

  • Combine T-Class with traditional systematic withdrawal plans to provide the same level of income but reduce the investor's overall marginal tax rate
  • T-Class may be a suitable investment for non-registered investments, insurance benefits, business, other capital asset sales and inheritances.
2. Select an investment that fits your client's objectives and risk tolerance
  • T-Class works best with a diversified portfolio that can offset market volatility:
  • It helps provide a smoother annual income from year to year
  • It helps provide growth so that your client can stay ahead of inflation and potentially ensure that the investment lasts longer during retirement
  • It also works for income solutions, by providing ROC instead of highly taxed interest income

With CI's T-Class, you have a wide choice of funds to construct a portfolio or you can choose from a number of portfolio funds. Click here to view investment choices.

3. Choose target distribution

T-Class's flexible setting allows investors to increase, decrease or customize their payout. Investors have the ability to stop withdrawals and start again at any time.

T-Class allows you to create a customized cash flow strategy for your clients.

Choose the 5% or 8% distribution for a particular fund by selecting the appropriate fund code. Payments can be customized at the client's choice of percentage amount or at a fixed dollar amount per month. Clients can request a payment amount equivalent to anywhere between 0.25% and 8% (increments of 0.25%) of the value of the fund as of the previous year-end.

Create a customized ROC payout using the Flexible T-Class letter of direction.

4. Create an illustration

The T-Class calculator provides the ability to illustrate the advantage of ROC distributions. A personalized cash flow illustration can be created to for your clients and provides clients with:

  • annual cash flow withdrawals
  • the value of an investment and the adjusted cost base over time
  • a comparison of T-Class and less
    tax-efficient alternatives, and
  • tax savings with T-Class.

 

 
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