Banking & Mortgages
At Drake Wellington, we believe that the bedrock foundation of any financial plan involves having the right relationship with your Banking, and Debt.
If there are opportunities to save costs, then we like to help our clients maximize their banking and cash flow efficiency where possible. When it comes to debt, many Canadians seem to look for the lowest mortgage or financing rate they can pay, however, they may not realize that there are more factors to the discussion such as paying Simple Interest or Compounding Amortized Interest. It may prove valuable to revisit the discussion of how different mortgage structures can offer key benefits, often not fully reviewed or fully understood as it relates to eliminating debt more efficiently or how to do so in a shorter time. We work with clients to offer debt solutions through our referral network of financial institutions and mortgage professionals to find what works best for our clients.
*Banking Referrals are made through the IDC Worldsource Network.
Life Insurance Policy Lending
A number of Corporate and Personal Insurance strategies involve the asset-backed lending against Permanent Insurance Policies such as Whole Life or Universal Life Cash Surrender Values (CSV Lending). We at Drake Wellington, have an extensive network of Lending Partners in order to help our clients gain access to the most suitable CSV lenders so that clients can make strong use of the cash values they are able to build up inside of a policy.**
**Please note: Borrowing to finance the purchase of securities or other financial instruments, involves a greater degree of risk than financing a transaction with non-leveraged cash resources only. If a loan or leverage strategy is used to finance securities, the borrower carries the responsibility to repay the amount of the loan plus interest, regardless of the performance of the security purchased. The use of borrowed funds can magnify the gains (or losses) of the value of the security in situations where the value changes.
Drake Wellington also works with a number of Financial Custodians for how Registered plans are held and reported such as:
– (RRSPs) Retirement Savings Plans
– (RIFs) Retirement Income Funds
– (TFSAs) Tax-Free Savings Accounts
– (LIRAs) Locked-In Retirement Accounts
– (RESPs) Registered Education Savings Plans
– (RDSPs) Registered Disability Savings Plans
These institutions are important relationships for both publicly traded and privately traded asset types and can offer different cost structures and services so this is vital to understand.