MORGAN NATIONAL CORPORATION (a broker of financial services) and You and your Company.

MORGANMORGAN NNATIONALATIONAL CORPORATIONCORPORATION (a broker of financial services)

and

You and your

Company

For years you have worked for money……………………..

Now let your money work for you……………………………..

How?

By taking advantage of strategies that save you money, thereby providing more cash for future investments and future income for your retirement!

The following presentation is an outline of strategies you can incorporate for the future well-being of yourself and your valued employees.

Introducing ……………….an IPP

IPP’s are for:

•Business owners and their families

•Key executives

•Professionals with professional corporations

The ideal candidate…………..

•Is someone age 45 or older (IPP contributions first exceed RRSP contributions at about age 38)

•Earns over $116, 667(2008) in T4, T4A or T4PS income

•However, an IPP can be established for candidates with lower earnings.

1. An Individual Pension Plan (IPP):What is It?

• An IPP is a defined benefit pension plan meaning the benefit payment amount and frequency of payments are defined, or known in advance. Contributions can be made until age

71. The amount required to fund the benefit increases as the employee get closer to retirement because there is less time to accumulate investment income. For this reason higher contributions are allowed than would be the case of RRSP’s.

• It is registered with the Canada Revenue Agency

• It operates under provincial pension legislation

• It performs better for those aged 45 years or older

• Contribution limits are based more on age rather than income

• Income compounds on contributions made to the plan, on a tax free deferred basis

• Contributions and growth within the plan are creditor-proof, subject to provincial pension legislation

IPP (continued):

•Contributions are tax deductible by the employer company

•Contributions are not included in personal income

•Contribution amounts increase with age

•Contributions amounts can be up to 65% greater than RRSP contributions

•Investment grows tax-free

•The investment can be self-directed

•Interest on funds borrowed for contributions are tax-deductible

•Expenses such as set-up fees and admin. fees are tax-deductible

•No tax is payable until withdrawal

•Allows for significant tax-deductible contributions to be made by the company should the rate of return on plan assets be less that 7.5% per year

•Contributions made within 120 days after corporate year-end

are deductible in the corporate year.

•Tax deductible lump sum contributions at the time of actual retirement or plan termination are possible in most circumstances.

•Any remaining surplus on termination of the plan may be returned to the employee (taxable to the member).

•No deemed dispositions of plan assets upon death; plan assets remain in the plan to provide benefits to surviving members.

•Past service contributions for previous employment years are possible even when RRSP’s are maximized-this provides additional tax savings. Contributions for past service may be paid immediately in a lump sum payment or amortized over a period of up to 15 years depending on the age of the plan member.

•The pension plan can be amended to provide more generous terms such as full consumer price indexing, early retirement pension with no reduction, and other benefits. These applications are known as “terminal funding”.

•If the spouse is employed by the same or a related company, the spouse can be added to the plan.

A Comparison of the IPP Advantage:

With an initial lump-sum catch-up payment……….

The advantages can be significant! Amounts shown were projected….actual allowable RRSP contributions differ from this table!

IPP Funding Arrangement

can be arranged through an insurance company!

Disadvantages of IPP’s:

•IPP’s have an initial cost to set up-an actuary determines the funding requirements of the plan based on salary, years of service with the corporation and other data.

•Additional costs include the filing requirements of CRA and the provincial pension commission and actuarial valuations every 3 years.

•IPP funds may be locked up until retirement-access to such fund assets is limited.

•Cannot income split as with RRSP’s.

•No cash lump sum available

•Mandatory annual minimum contribution.

Who We Are:

Morgan National Corporation is a financial services brokerage firm. Because we are brokers, we have the ability to shop the marketplace on your behalf to provide you with the most suitable yet cost-effective financial product.

Contact us to provide you with a personalized IPP illustration.

Here’s what else we can do for you:

•Life insurance and related products, including mortgage life insurance•Group Benefit Health Plans; Private Health Service Plans•Living Benefits such as Critical Illness •Wealth Enhancement-RRSP’s, and leveraged investments •Assistance in developing a Unanimous Shareholders’ Agreement•Incorporations

Contact Information

Office: Ph (403) 541-0226 Toll Free 1(866) 595-3533 Fax: (403) 541-0226

Email: [email protected]

Address: #100-915 42nd Avenue SE Calgary, Alberta T2G 1Z1

Advisors: Lyle Lee Richard Adler

This concludes our presentation!

Morgan National Corporation