CPP as a Force For Good – Grandkids

In a previous article, we discussed using your CPP as a force for good. It detailed how retiree Cathy Gauci was able to use her CPP to create a $400,000 charitable donation for her local hospital.  Read that article here:

Use Canada Pension Plan (CPP) as a Force for Good

Part two of the Gauci story is about what Cathy's husband Jim decided to do with his CPP when he too embraced the concept of using your CPP as a force for good. 

How Jim Put to Use His Canada Pension Plan for His Grandchildren's Benefit

Jim Gauci is an amazing grandpa. He loves to lift the kids in the air making them squeal. He takes the older ones for fishing adventures and started teaching them how to golf. He is patient when his favourite personal items are touched by sticky fingers and when one of the twins was sick in his car, he took it in stride.

Jim decided to use his CPP for his grandchildren's benefit. His grandchildren are still young with Michael the eldest at just 7, Thomas is 5, and the twin girls Maddie and Isabella are 3.  Jim's adult sons are financially educated and have set up and maxed out the annual RESP contribution limits for their own children.

Jim is set to receive $16k a year in maximum payments from CPP. He doesn't need the money and wants to help the kids out with some longer-term wealth transition strategies. He set up a program for his grandchildren that will allow them to have a starting amount of $100,000 in life insurance and coverage for life.

By the time each grandchild reaches their mid-late 20s, there will be tens of thousands available to assist them in paying for vehicles, weddings and home downpayments.  By the time the twins are 65, the tax-free death benefit has potentially grown up to 9 times. The financial advantages the Gauci grandchildren experience are enormous.

Jim paid premiums for 10 years and gave his grandchildren a lifetime gift. They will never forget him or his generosity. When they're older, Michael, Thomas, Maddie and Isabella will follow in Jim's footsteps. They too will put an insurance policy on their grandchildren, and the family's wealth expands and grows with each generation. 

You too can use your CPP as a multiplier and a force for good, just like Jim.

Maximize Your CPP Benefits with Tayler Insurance's Expert Guidance

Harness the power of your Canada Pension Plan (CPP) with Tayler Insurance's expert financial guidance. Our tailored financial strategies ensure you leverage CPP benefits effectively for retirement security and beyond. From optimizing contributions to navigating complex regulations, trust us to maximize your CPP potential. Our team specializes in leveraging CPP benefits to their fullest extent, whether through strategic planning, investment advice, or retirement income optimization.

Secure your financial future with Tayler Insurance today! Contact us now to start maximizing your CPP benefits.

Taivi Tayler, RRC, CLU, Certified Financial Planner

www.taylerinsurance.com         

Source: Equitable Mar2024