Thursday, August 04, 2005

The Beauty Of Income Trusts

Most people are familiar with investments like stocks, bonds and real estate. What they don't realize is that there are people / companies out there that professionally manage investment portfolios to generate above average income.

Income trusts offer a good alternative for people who want to live off their investments. They offer retruns anywhere between 7% and 20%, depending on the type of trusts. Returns are made up of income producing investments and capital gains. Income is generated from dividends, interest from bonds or GIC's or rental income from real estate. Generally, the value of income trusts parallels the bond market. At interest rates go up, the value goes down.

Income generated from income trusts is tax advantaged. Although these trusts qualify as RRSP investments the tax advantages are lost within an RRSP. If you have a high income pension or RRIF you may want to diversify your non-RRSP income through income trusts. Professional investment managers work diligently, with a team to create as much income as possible while taking advantage of all the tax write-offs and tax deferral methods.

Income trusts are such a good income producing vehicle that there is some debate about the government changing the tax laws specifically for this class of investments. There is also a danger of unlimited personal liability because of the structure of these investments. Be sure you have all the information before you sign up for this type of investment.

Living Legacy's Inc. offers up to 11% tax-advantaged gains. In fact, for many people the gains are tax free. For more information you can access the complete package here: http://www.netman-ecommerce-guru.com/life1 or call 1-877-269-0950.

For a more detailed discussion of income trusts you can go to: http://www.fbc.ca/Keep_Current/Articles/articles05020401.asp

This site offers an up to date review of income trusts: http://www.davidkaiser.com/incometrustreview.htm

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