What a fee costs over time
A fee is a small number applied to a large one, every year, for a long time. This runs the same money twice and shows the difference. The return is your assumption; this page does not supply one.
What a fee costs over time
What the fee costs
| Value with no fee | |
|---|---|
| Value after the fee | |
| The difference | |
| Share of the ending value |
Fill in the figures and the answer appears here.
What this sum leaves out
- It compounds once a year at a rate that never changes. No real investment does that, and the order in which good and bad years arrive changes the outcome.
- Tax is not modelled, and neither is the value of what the fee buys. A fee is not automatically waste; it is a cost, and this shows the size of it.
- It is arithmetic on your assumption, not a projection of any product.
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This calculator is an illustration, not a quotation, a projection or a recommendation. It performs arithmetic on figures supplied by the reader and supplies no rate, return, premium or benefit of its own. Results depend entirely on the assumptions entered and will differ from any real contract, plan or account. Canadian Wealth Creation Centre Inc. is licensed for insurance distribution and is not registered with CIRO; nothing here is securities advice. No figure entered here is stored, transmitted or seen by anyone.
It is a sum, not a promise. Change one assumption and the answer changes, which is the point of it. Use it to understand the shape of a question, then check the specifics against a real statement, a real contract, or a person licensed where you live.
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A first conversation establishes whether this fits. No illustration is prepared and nothing is arranged.
Often the answer is no, and you will hear it during the call rather than in a proposal afterwards.
About the author
Jose Salloum is a Financial Security Advisor (Conseiller en sécurité financière) licensed by the Autorité des marchés financiers in Quebec, by the Financial Services Regulatory Authority of Ontario, and by the Insurance Council of British Columbia. Licensed since 2001, he works with Canadian families, business owners and incorporated professionals.
He is the founder of Canadian Wealth Creation Centre Inc. (CWCC), registered with the AMF, and of its educational branch IBCFinancial.com. He holds the Infinite Banking Concepts® Authorized Practitioner certification from the Nelson Nash Institute, a private certification rather than a regulatory licence.
CWCC is not registered with CIRO and does not provide securities advice. This page is general education and not advice on any individual file.
Important disclosures
This page is education, not advice. The content is general information prepared by Canadian Wealth Creation Centre Inc. It does not take your circumstances into account and is not a recommendation to buy, hold or cancel any contract. CWCC is not registered with CIRO and does not provide securities advice. The firm places insurance in Quebec, Ontario, Alberta, British Columbia, Manitoba and New Brunswick; clients elsewhere are served by advisors licensed in their province.
Nothing here was written with your file in front of us. Read it to understand the subject, then judge it against your own situation, ideally with someone who is licensed where you live and who has seen your numbers.
Tax treatment depends on your own circumstances. The tax treatment described depends on the contract remaining exempt under the Income Tax Regulations and on the reader’s individual circumstances. A withdrawal, a surrender or a policy loan may be a disposition under the Income Tax Act, and amounts above the adjusted cost basis may be taxable in the year they occur. Tax rules change.
The tax result is not automatic and it is not unconditional. It rests on the contract staying within the Canadian rules and on your own situation. Before you rely on any of it, talk to an accountant who has actually worked with these contracts.
Illustrations and projections are not predictions. Any figures, examples or illustrated values are hypothetical, are shown to explain a mechanism, and are not a forecast of the performance of any contract. Actual values will differ and may be lower than those shown. Past dividend scales do not predict future scales.
An example is there to show how the parts move, not to tell you what you will get. Any real illustration you are shown should be read on its guaranteed columns first.
Investment discussion is general and comparative. References to investment products, accounts or returns are for comparison and education. CWCC does not sell securities and is not registered with CIRO. Segregated funds are insurance contracts; their guarantees are the insurer’s and apply only at the dates and on the terms written in the contract. Returns are not guaranteed and capital can be lost.
When this site compares a contract with an investment, it is describing how each works, not telling you which to buy. Questions about securities belong with someone registered to answer them.