People would put their money on a specific temperature at a specific time and the money would go
into tax free interest earning escrow account.
The total cost of the 3.5 yrs by 2007 was $ 29,000 but I used a Tax free RRSP transfer to do so, so the Feds picked up one third and I had increased my RRSP contribution
with tax free interest over the years by a 3rd so the 3.5 yrs cost me out of pocket about $ 10,000.
We both fund our 401ks aggressively (we'll each max them out this year) and save a considerable amount of money each month and invest it in some stocks, mutual funds, and
tax free interest municipal bonds.
Christine, What you would do is rollover your RRSP into a RRIF (Registered Retirement Income Fund) and then make regular withdawals while still
accumulating TAX FREE interest / dividends, etc, etc on what remains in the RRIF.
Medium - to - long term, but if the value drops, I am perfectly happy with waiting till maturity and collecting
my tax free interest.
His input included approaching the wealth building concept from
a tax free interest angle versus the raw numbers of premium and death benefit.