10 Things You Never Knew You Could Do with Your CPP Retirement Benefit
The CPP retirement benefit often plays a significant role in securing financial stability as retirement approaches. Yet, for many who've sold businesses or done well financially, its impact on retirement plans can be minimal, especially if it's taxed at 53%. Often, it's accepted as income due to a lack of awareness about its repurposing potential. In response, I've formulated ten innovative ideas to reshape your CPP benefit, channelling it toward enduring impacts that transcend generations and make a meaningful difference. Here are 10 ideas, but you’re only limited by your own imagination.
Generational Education Fund:
Utilize your CPP to fund an insurance policy that secures your grandchildren's post-secondary education expenses, alleviating the burden of student debt. In the next 20 years, a 4-year undergraduate degree with residence is predicted to cost close to $150,000.
The Home Downpayment Fund:
My kids have expressed concern about whether they can afford a home one day. This opportunity allows you to provide a substantial down payment for your grandkid’s homes, offering a head start toward homeownership.
Eternal Birthday Celebration:
Grant each grandchild a birthday gift, ensuring they receive a $10,000 cheque (or any amount) annually for 20 years after your passing. Do you think you’d be remembered fondly by your grandkids?
Entrepreneurial Venture Fund:
Seed your grandchild's first business, nurturing their entrepreneurial dreams and fostering a legacy of innovation.
See-The-World Fund:
Treat your family to global vacations for years, granting them priceless memories and experiences funded by your repurposed CPP benefit.
Family Cottage Preservation Fund:
Secure the future of the cherished family cottage by covering the capital gains tax, property taxes and creating an ongoing fund for maintenance.
Charitable Giving Option#1:
Transform your CPP retirement income into an insurance policy benefitting a charity, receiving tax benefits during your lifetime and for your estate.
Charitable Giving #2:
Establish a charity as the owner of an insurance policy funded by your CPP, directing a substantial sum to the cause upon your passing.
Final Expenses Fund:
Create an insurance policy to cover end-of-life costs and potential outstanding estate taxes, ensuring a smooth transition for your loved ones.
Hybrid Fund Solution:
Combine multiple repurposing options through an insurance policy funded by your CPP, tailoring a strategy that aligns with your unique desires.
In essence, by repurposing your CPP benefit, you have the power to shape a transformative legacy. Whether securing education, fostering entrepreneurship, creating lasting memories, or supporting charitable causes, your CPP benefit can extend its impact beyond its initial purpose. It's an opportunity to gift your loved ones and the world with enduring positivity, leaving a mark that transcends generations.
If you’re interested in repurposing your CPP, let us show you how to make it a reality.
