1) Tell us about Wisdom Structured Investments™?
Wisdom Structured Investments?™ specializes in developing financial products that are designed to provide limited downside risk and a leveraged exposure to the positive price return of an equity index. We have three innovative products which provide an affordable ten year investment opportunity through our Wisdom Mutual Fund™ for the Exempt Market: RSP Generation™, TFSA Generation™ and TDI Generation™ (Tax Deferred Income), which is for small businesses, family offices (CCPCs), and high net-worth individuals looking to defer passive income for ten years in order to retain their annual small business low tax rate status.
2) What sets Wisdom Structured Investments™ apart?
In keeping with of our motto, “Life is Harsh…Your Financial Future Should Not Be!™”, and realizing that 93% of Canadian taxpayers have over $1.1 trillion in Unused RSP Contribution Room and around 75% have Unused TFSA Contribution Room, we designed our innovative products aimed at “Helping Canadians Build a Healthier Financial Future!™” and “Helping Canadians Retire On Time!™”.
To address these issues, Wisdom Mutual Fund™ Units ($1,000 each) feature:
Investment in a Participating Bank Note (a “PBN”) with a principal amount of $1,000 unit. Such principal is fully guaranteed by a Canadian Schedule 1 Bank, if held to maturity;
Unlimited Return: the PBN provides a participation rate of 100% on the positive price return of the S&P/TSX 60 index with no cap, if held to maturity;
Reduced Cash Outlay per Unit ($1,000) invested: First Installment - $500 per Unit (50% of Unit Issue Price) due on Closing; Second Installment - $500 per Unit (50% of Unit Issue Price) due five (5) business days before Maturity Date in ten (10) years (no security required); and Financial Services Fee - $310 per Unit (equates to 4.95% annually on Second Installment) due five (5) business days before Maturity Date in ten (10) years (no security
Line of Credit: for the First Installment, available to qualified investors;
Leverage: 2:1 - Returns generated on 100% of Unit Issue Price ($1,000) with only 50% paid upfront;
Compounding: Increase your savings NOW to take advantage of the power of compounding; and
Mutual Fund Fees: The Administrator pays all management fees and sales and marketing expenses. Unit holders pay no annual Mutual Fund fees.
3) What are the company's future goals or vision?
Most Canadians are great spenders and not such good savers. According to a recent CIBC poll, 32 per cent of Canadians between 45 and 64 have nothing saved for retirement and this trend is increasing. The Canadian government specifically designed RSPs (income deduction for contributions) and TFSAs (no tax on income earned) to give Canadians the opportunity to save for a healthier financial future and be able to retire on time. Clearly, for most Canadians, this is not occurring as affordable products in one investment, until now, have not been available. Wisdom Mutual Fund™’s innovative products are designed to give Canadians an affordable way to utilize their Unused Contribution Room in their RSP and TFSA. Also, Family offices and small businesses in Canada are facing the harsh reality of, once $50,000 in passive income is achieved annually, each $1 of passive income reduces the small business low tax rate status by $5. On $100,000 in passive income annually above $50,000 for a small business, the extra tax is $750,000 over ten years due to the loss of the small business low tax rate. Deferring that passive income for ten years with Wisdom Mutual Fund™ Units results in a 44% increase in net income after tax based on comparable investment returns over ten years.
Together with the Exempt Market Industry, we are fully committed to Helping Canadians Build a Healthier Financial Future™ and Helping Canadians Retire on Time®.
4) What are your hopes for our industry?
Wisdom Mutual Fund™ hopes that the Exempt Market Industry and Canadians seize the investment opportunities from RSP Generation™, TFSA Generation™ and TDI Generation™ (Tax Deferred Income) to assist Canadians with creating a healthier financial future and be able to retire on time.
5) How has Exempt Edge software impacted your day-to-day business?
Exempt Edge software allows us to streamline our back office and efficiently manage our client services. By saving us time on areas such as reporting and administration, we are able to serve the needs of our clients better, which has had a very positive impact on our day-to-day business.
6) How has your experience been with the Exempt Edge team?
Our experience with the Exempt Edge team has been very positive. Migrating to a new software platform often has its teething issues and Chris Lindsay and the Exempt Edge team have been very helpful with their training and support.
7) Anything else you’d like people to know?
If you would like to help your clients achieve a healthier financial future and retire on time, please visit www.wisdomsi.ca to learn more about our three innovative products.
Melvin Reeves, CEO & Director of Wisdom Structured Investments Inc., B.Comm. (Finance), M.Sc. (International Business), LLb. has been involved in the structured finance business for over 40 years.