RRSP Meltdown Program Masterpiece

Tiffin Financial
30 Via Renzo, Richmond Hill, ON L4S 0B8
Tel: 905.787.2303 Fax: 905.787.2001
The Demographic-LinkTiffin Financial
Tel: 905.787.2303 Fax: 905.787.2001
The Demographic-Link
Welcome
RRSP Meltdown Program

Tiffin Financial
Tel: 905.787.2303 Fax: 905.787.2001
95% of all Canadians retire broke, dependent on friends, family or the federal government for their primary source of income.
According to Bank of Canada and statistics Canada in 2009.
The majority of Canadians spend $1.60 for every $1.00 they bring in.
How much tax do we pay?
Firstly Ontario has a progressive Tax system in place the more you make the more tax you pay.
First $10,000 is Tax exempt.
From $10,000 to $20,000 you pay 20.05%
From $20,000 to $37,000 you pay 26.05%
From $37,000 to $75,000 you pay 37.15%
From $75,000 to $127,000 you pay 47.16%
From $ 127,000 up you pay 48.16%
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How Much Taxes Do We Pay
The Demographic-Link B2B ProgramThe Demographic-Link B2B ProgramThe Demographic-Link
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That is income tax only.
Then Employment tax, Canada Pension tax, Employment Insurance tax and Health
tax.
Then Consumer taxes, Liquor tax, Tobacco tax HST.
Then there are the taxes included in gasoline prices in Ontario. 13% HST, 10¢ per
litre for the Federal excise tax and 14.7¢ per litre for the provincial gasoline tax.
The Demographic-Link B2B ProgramThe Demographic-Link
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Tiffin Financial
Tel: 905.787.2303 Fax: 905.787.2001
The Demographic-LinkTiffin Financial
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Vat Tax is coming where manufacturer’s pass on the Value added tax to consumers
up to 20-25%.
Vehicle tax. Travel tax.
Then we have Asset tax.
Property taxes 2% of assets every year.
Commercial property tax 4-6% of assets each year.
50% of all property taxes go to education and infrastructure.
So where do our income taxes go?
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Tiffin Financial
Tel: 905.787.2303 Fax: 905.787.2001
Tel: 905. 787. 2303
Capital Gains tax that we never had until 1972 which is payable at approximately 25% depending on your tax bracket.
Then we have permits that are a form of tax as the money goes to the same place.
Business permits which can be anywhere from $10 -$500 a year.
Building permits and renovation permits from $500 to $5,000. A home Business permits $50. Fishing and hunting permits. Special events permit
for weddings parties etc.
Did I mention Drivers Licenses permit and Vehicle stickers?
Then we have Professional licensing for all professions and trades people.
Canada is one of the most taxed countries in the world. Paying over 800 direct and indirect consumer taxes...
How about Government waste?
Gun control registry was suppose to cost $2,000,000 but ended up being over $1billion.
G20 convention was suppose to cost $100 million but cost $1.5 billion.
Then there was…Sky Dome, Pearson airport etc.
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Tiffin Financial
Tel: 905.787.2303 Fax: 905.787.2001
Tel: 905. 787. 2303
Let’s do a reality check.
A 40 year old Canadian Tax payer in Ontario earning $100,000 a year will pay CRA $32,000 in income taxes.
He will also pay them $2,500 for CPP benefits that he may not collect because of claw backs. He also has a further
deduction of $2,200 for E.I. Insurance.
That is $36,700 from his pay cheque.
Mortgage and property taxes are on average $22,000. Electrical, gas and water bills add up to a further $7,300 a year.
Therefore his household costs are $29,300.
Car payments, maintenance and Gas add up to another $12,000 a year. Groceries, restaurants and entertainment adds
another $12,000 and clothes is $6,000. Personal Dental etc. depending on size of family is another $7,000.
So the total needed just to live is $103,000 a year.
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Tiffin Financial
Tel: 905.787.2303 Fax: 905.787.2001
Tel: 905. 787. 2303
Now add his HST of $5,800, hidden crown taxes of $4,500, and the total to CRA or the Crown is a further $10,300
When you add the payroll taxes and property taxes the total Crown/CRA taxes are $51,000 or 51%.
Bank interest [including mortgage] and credit card interest can add another $26,000.
Insurance for credit cards, automobiles, house and Life Insurance can add another $5,000.
So the 3 big bad wolves take up to 80% of your income.
This leaves 20% remaining which is not enough to live on, which is why are forced to borrow and live in debt.
That same 40 year old making a $100,000 a year during his life time has paid $1.6 million in direct taxes and a further $600,000 in indirect taxes.
He also will pay $800,000 in interest to Banks and a further $200,000 to insurance companies.
$1.6 million at 6% return over 40 years would leave a retirement nest egg of $6,973,336.
Proper tax planning will increase your retirement nest egg by 2/3, which means it is your best option for wealth creation.
A wise man once said “An investment in knowledge pays the greatest interest.”
That man was Benjamin Franklin.
Tel: 905. 787. 2303

Tiffin Financial
Tel: 905.787.2303 Fax: 905.787.2001
Tel: 905. 787. 2303
HOW TO AVOID THE RRSP TRAP/TIME BOMB
One of the biggest mistakes we make as investors is forgetting just how much tax we will pay to Revenue Canada if we rely too
much on RRSP savings for retirement. It is even worse if you have a company pension.
Here is an example. A single male age 45.
Let’s say you have been told by your accountant to maximize your contributions to RRSP since you started working and now have
$200,000 in RRSP.
Using the rule of 72 at 10% return your money doubles in 7.2 years. So at age 52.5 you’re your money has doubled to $400,000.
And by the time you are 60 you now have $800,000. By the time you are 67.2 years old you now have $1,600,000 in RRSP’s. And
that is just using 10%.
If you take out just 10% per year without touching the principle and continue to make 10% return. You will pay almost $80,000 in
taxes each and every year until you die. When you pass away your estate will have to pay $800,000 in taxes to Revenue Canada
who I call hands in your pocket.
So I ask you, are you saving all this money for Revenue Canada?
So were the accountants wrong?
Tel: 905. 787. 2303

Tiffin Financial
Tel: 905.787.2303 Fax: 905.787.2001
Tel: 905. 787. 2303
HOW TO AVOID THE RRSP TRAP/TIME BOMB
No, you want to save taxes any time you can, all you have to do is see previously at the beginning of this presentation how
much tax we pay to understand that.
Our clients have been using Demographics, which points out that for the next 20 years three areas of great growth will be
Health Care because the world is ageing. Also India and China because of their massive combined middleclass of over 1.3
billion.
A 15% return doubles your money in only 5.5 years. So even though my clients love the returns, if I did not show them how
to reduce the taxes the money paid to Revenue Canada would grow. If you add a pension to this mix, the TAX increases.
So the key is to use the RRSP’s to reduce your taxes. But also use a strategy called the RRSP MELTDOWN without paying
any taxes on the withdrawals.
Additionally, if you’re 55 and have a pension coming there is another way to unlock half of your pension by transferring it
to a Life Income Fund/RRSP.
This way the RRSP portion can be used with the RRSP MELTDOWN program, which creates liquid cash for you to use.
Tel: 905. 787. 2303

Tiffin Financial
Tel: 905.787.2303 Fax: 905.787.2001
The RRSP Meltdown Strategy
In order to move RRSP money into Non-Registered funds, we have to create a tax
deduction that offsets the tax payable on the RRSP withdrawal.
In this case, we use an investment loan from B2B Bank. When you borrow to invest,
interest becomes tax deductible.
If we match the amount withdrawn from the RRSP funds to the amount of the interest
payment, the withdrawal offsets the amount of the interest paid and indirectly you are
using dollars from your RRSPs that would normally go to Revenue Canada as taxes to
pay for the full cost of your loan, therefore, Revenue Canada is funding your retirement.
Tel: 905. 787. 2303

Tiffin Financial
Tel: 905.787.2303 Fax: 905.787.2001
What makes us
different?
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Tiffin Financial
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Tiffin Financial
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What to do?
Adopt a Global Strategy
Based on Demographics
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Tiffin Financial
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Tel: 905. 787. 2303
Among all the factors affecting the economy and the
markets demographics is the most reliable predictor
“The age structure, racial composition, and growth
trends of a population – are arguably the single
most important factor affecting the long-term
performance of our economy.”
(The Conference Board of Canada)

Tiffin Financial
Tel: 905.787.2303 Fax: 905.787.2001
Tel: 905. 787. 2303
Demographics provide the most reliable guidance regarding
protection and growth of assets
• World events, politically motivated actions and financial crises affect market
performance, but they are not as compelling and enduring as demographic
forces.
• The buying power of a population as determined by size and age of population is
the ultimate driver of economic activity.
• Demographics provide a highly reliable predictor of size and age of populations.
As such, the long term performance of markets can be projected with a high
degree of certainty.

Tiffin Financial
Tel: 905.787.2303 Fax: 905.787.2001
Childhood
0-14
Young Adult
15-34
Family
35-59
Light Retirement
60-79
Life’s Final Stage
+80
The 5 Stages of Life
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Tiffin Financial
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46.5 years
Average Annual Family Spending by Age
Adapted from The Great Boom Ahead by Harry Dent Jr.
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Tiffin Financial
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Japanese Births: 1990-1999
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Tiffin Financial
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11,000
NIKKEI 225 Adjusted for CPI: 1972-1992
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Tiffin Financial
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Years10 Million Canadians
US Demographic Snapshot
81 MillionPlus 5 Million Immigrants
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Tiffin Financial
Tel: 905.787.2303 Fax: 905.787.2001
CIBC-$17.43B-----------42.69% Stock Price Decline
BMO-$15.35B------------42.31% Stock Price Decline
RBC-$19.86B-----------25.14% Stock Price Decline
TD-$10.84B---------------19.53% Stock Price Decline
SCOTIA -$10.45B------19.38% Stock Price Decline
Total of $79.9 Billion Loss due to Sub-Prime
Turmoil
BIG FIVE CANADIAN BANK LOSSES
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Tiffin Financial
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TSX
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Tiffin Financial
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• Brazil gained 194%...
• Russia gained 179%..
• India gained 137.3%...
• China gained 89.5%...
• Mexico gained 94%...
• South Korea gained 139%...
BRIC GAINS
Source-Money Morning, March 29/2010
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Tiffin Financial
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June 30th, 2011
15% U.S Technology (NASAQ 100) 22.27%
10% BMO China Equity (ETF) 15.42%
10% BMO India Equity (ETF) -3.35%
15% Global Base Metals (ETF) 62.50%
15% Dynamic Resources Fund 33.98%
15% Dynamic Canadian Growth 10.10%
10% Bisset Small Cap Fd 24.34%
10% Templeton Bric 17.82%
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Tiffin Financial
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Projected Size of National Economies 2025
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Tiffin Financial
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Projected Size of National Economies 2050
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Tiffin Financial
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We Agree with Goldman Sachs – BRIC is the Right Place to
Invest – Provided it is Strategically Driven by
Demographics
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Tiffin Financial
Tel: 905.787.2303 Fax: 905.787.2001
Tel: 905. 787. 2303

Tiffin Financial
Tel: 905.787.2303 Fax: 905.787.2001
Here is an actual example of our client’s investments.
Client has $200,000 in RRSP’s and no other investments, as they were told to invest in RRSP’s for tax deductions and
nothing else.
We went to B2B and borrowed $300,000 at an interest cost of only 3.75% per year.
The monthly cost was $937 per month, which was paid by his RRSP withdrawal of $937 per month. The interest on
the loan, 100% of the monthly cost is tax deductible off-setting the tax on the RRSP withdrawal.
The end result after two years was as follows:
No money came out of the client’s pocket and it had no effect on his life style. The investment itself actually made
40% over the last two years and is now worth $439,000. The client made $139,000 in non-registered money using our
Demographics approach and the Government of Canada basically paid for it.
The RRSP Meltdown Strategy
Tel: 905. 787. 2303

Tiffin Financial
Tel: 905.787.2303 Fax: 905.787.2001
Tel: 905. 787. 2303
Tel: 905. 787. 2303

Tiffin Financial
Tel: 905.787.2303 Fax: 905.787.2001
Tel: 905. 787. 2303
Tel: 905. 787. 2303
Account Statement March 2014
DUPLICATE
SMITH JANE
SMITH JOHN
Your dealer
FINANCIAL HORIZONS GROUP Investment account summary____________________
2 LANSING SQUARE, SUITE 702 Account Account Market value on Market value on
TORONTO, ON type number Jan 31, 2014 Mar 31, 2014______
M2J 4P8 Investment Account 134XXXX $422,303.07 (D) $437,902.08
Your advisor
DANIEL E. TIFFIN

Tiffin Financial
Tel: 905.787.2303 Fax: 905.787.2001
Tel: 905. 787. 2303
Tel: 905. 787. 2303
Account Statement March 2014
DUPLICATE
DOE JANE
DOE JOHN
XXXX, LINE X, RRX
BRADFORD ON L3Z XXX
Your dealer
FINANCIAL HORIZONS GROUP Investment account summary____________________
2 LANSING SQUARE, SUITE 702 Account Account Market value on Market value on
TORONTO, ON type number Jan 31, 2014 Mar 31, 2014______
M2J 4P8 Investment Account 134XXXX $663,774.00 (D) $699,247.70
Your advisor
DANIEL E. TIFFIN

Tiffin Financial
Tel: 905.787.2303 Fax: 905.787.2001
Tel: 905. 787. 2303
The Demographic-Link B2B ProgramThe Demographic-Link B2B ProgramThe Demographic-Link B2B ProgramThe Demographic-Link
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Tiffin Financial
Tel: 905.787.2303 Fax: 905.787.2001
In addition to the five business practices detailed above, you are reminded that
discretionary trading practices are prohibited. The following is an
excerpt from the message sent to all Field Members on June 15th, 1998.
Examples of this prohibited process are:
•Representing to your customers that you will monitor there investments and
“when the time is right” make decisions to move those investments to
other funds/products.
Leave market timing to the investment experts. Even if they don’t have a
crystal ball and cannot guarantee success in this strategy.
•Moving your customers “en-masse” to other investments you consider to be
more suitable (block of business switch/transfer transactions).
Customers’ investment decisions are based on their objectives and risk
tolerance. What is a good decision to one customer may not be best for
another. In addition, you need written authorization from your customers
to do any transactions in their accounts.
•Obtaining your customer’s signature on blank investment forms-for
purchase or redemption requests-in order to facilitate the action when
you believe the time is right to do so.
This practice is specifically against your London Life code of business conduct.
•Obtaining a power of attorney from your customer, giving you the authority
to make all investment decisions on their behalf and to complete and
submit the investment actions forms based on your decisions.
This puts you in a direct conflict of interest position, if the transaction you
initiate is one where you will receive compensation for facilitating, yet it
is not necessarily the best transaction or a necessary transaction for
your customer.
If your customer wants to designate power of attorney to act
on his/her behalf, then the power of attorney must be given
to someone other than you or another member of London
Life.
It is beyond the scope of your license, whether life insurance
or mutual fund, to effect any action without your customer’s
explicit knowledge of such action.
Very soon we will be introducing a “letter of authorization”
process that will enable you to take verbal trading
instruments from customers and pass those instructions on
to London Life Financial Centre for processing. No customer
signatures will be required on these financial transaction
requests, however you will have to obtain written
authorization from your customers before this can happen.
This process is not a “power of attorney” or any form of
discretionary trading practice. You will only be able to act on
specific instructions from customers. Stay tuned for more
information and instructions.
Compliance with the above is mandatory and failure to
comply will result in disciplinary action, which may include
termination of your Agreement. Engaging in discretionary
training leaves you, London Life and London Financial
Centre open to claims by customers. Potential claims may
not be covered by your professional liability insurance
coverage.
Prohibited Practices
1) Monitoring customer’s
investments and deciding to
move to other funds/
products. Leave market
timing to investment
experts.
2) Moving customers en
masse to other investments
that you consider to be
more suitable.
3) Failure to comply with rules
will result in disciplinary
action.
Discretionary Trading
Can You Trust Financial Institutions?
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Tiffin Financial
Tel: 905.787.2303 Fax: 905.787.2001
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RRSP Meltdown Program Masterpiece

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