Wealth Creator for Children & Grandchildren

Give Them More Than an Education Fund.

Give Them a Financial Foundation for Life.

When children are young, it's impossible to know exactly where life will take them.

University or college may be part of the journey. So might learning a trade, buying a first home, starting a business, investing in real estate, pursuing an entrepreneurial opportunity or eventually building wealth for their own family.

An RESP is designed primarily to help families save for post-secondary education.

Wealth Creator asks a broader question:

What if the capital you build for a child could potentially serve them through many stages of life?

Wealth Creator is a long-term planning strategy built around properly designed participating whole life insurance.

The objective is not simply to fund an education.

It is to begin building a financial asset that may continue serving the child or grandchild long after school is finished.

[Explore Wealth Creator]

Think Beyond Education

Education is important, but it is only one of the major financial opportunities a child may face.

Imagine helping create capital that may eventually support:

• post-secondary education
• a first home
• starting or purchasing a business
• professional or entrepreneurial opportunities
• investment or real-estate opportunities
• access to capital for future financing needs
• long-term financial security
• retirement and future family wealth
• an intergenerational legacy

A child's needs will change enormously over a lifetime.

That is why flexibility matters.

A prosperous future for your child and/or grandchild:

• AGE 18
  Education
  $154K illustrated value

  ↓

  AGE 30
  Home / Business
  $370K

  ↓

  AGE 40
  Investment / Real Estate
  $700K

  ↓

  AGE 50
  Retirement Capital
  $1.285M

  ↓

  AGE 65
  Retirement Flexibility
  $3.025M

  ↓

  AGE 85+
  Legacy
  $10.406M illustrated death benefit

  
  

***Assumptions based on major Canadian life insurance companies in 2025. Based on current dividend scales. Dividend scales are projected and not guaranteed until each dividend is paid. (Dividends have been paid in the industry each year for over 175 consecutive years). Based on starting a plan after child is 1 month old, and a monthly contribution amount of $500.

RESP or Wealth Creator?

The Better Question May Be Whether There Is a Role for Both.

RESPs can be extremely valuable.

Eligible RESP contributions may attract the Canada Education Savings Grant. The basic CESG currently provides 20% on qualifying contributions, generally up to $500 annually, with a lifetime maximum of $7,200 per eligible beneficiary. RESP contributions themselves are subject to a $50,000 lifetime limit per beneficiary. [canada.ca], [canada.ca]

That's a benefit worth considering rather than dismissing.

RESP

Designed primarily for education

An RESP may provide:

• access to government education savings incentives
• tax-deferred investment growth within the plan
• funding for qualifying post-secondary education
• the ability to return original contributions to the subscriber tax-free, subject to the plan terms and applicable rules

Educational Assistance Payments consist of grants and accumulated earnings and are generally taxable to the student. [canada.ca], [canada.ca]

Wealth Creator

Designed with a broader lifetime objective

Depending on how the strategy is structured and ultimately used, the objective may include:

• education
• financial protection
• long-term cash-value accumulation
• future access to capital
• financing opportunities
• home ownership
• entrepreneurship
• retirement
• estate planning
• intergenerational wealth

The decision doesn't necessarily have to be either/or.

For some families, the appropriate conversation may be:

How much should we dedicate specifically to education, and how much should we build for greater long-term flexibility?

How Wealth Creator Works

Wealth Creator uses a specially crafted participating whole life insurance policy specifically designed for long-term cash-value accumulation and permanent insurance protection.

Over time, the policy develops contractual values and may also receive participating policy dividends.

Dividends are not guaranteed until paid and will vary according to the insurer's declared dividend scale.

The policy owner may potentially access policy values through available borrowing arrangements, subject to the policy, lender requirements, interest costs and other applicable terms.

This creates an important distinction:

The asset is intended to exist beyond the initial goal.

A family may initially be thinking about education at age 18.

But the same long-term planning strategy may still be relevant when the child is:

25 and buying a home

30 and starting a business

40 and investing

60 and planning retirement

or eventually thinking about the financial foundation to leave to the next generation.

That is the philosophy behind Wealth Creator.

More Than an Investment Account

A traditional investment account primarily answers one question:

How much might this money grow?

Wealth Creator encourages several additional questions:

How much control do we retain over the capital?

How accessible is it when an opportunity arises?

What risks and guarantees are involved?

What are the costs and opportunity costs?

What happens if markets decline when the money is needed?

Can the strategy continue beyond the child's education years?

What ultimately happens to the asset when it passes to the next generation?

The objective isn't to claim that one approach is universally superior.

It is to understand what job you want the money to perform.

Where Infinite Banking Fits

Wealth Creator Is the Asset Strategy. Privatized Financing Is One Potential Application.

As cash values develop, some families may eventually choose to explore the principles of the Infinite Banking Concept®.

IBC focuses on thinking differently about capital and financing.

Instead of looking only at:

"Where can I borrow money?"

the family begins asking:

"How can the capital we've been building participate in our broader financing strategy?"

I often describe this application as Privatized Financing.

It can potentially be relevant to future purchases, investments or opportunities, but borrowing is not free. Loans involve interest, terms and risks, and borrowing can affect policy values and benefits.

Wealth Creator is therefore broader than Privatized Financing.

The financing capability is one potential use of the asset rather than the entire reason for creating it.

Start Early. Think Long Term.

One of the advantages a young child possesses is something money cannot buy later:

Time.

A properly structured long-term financial strategy established early has decades in which to develop.

But starting early does not make every policy automatically appropriate.

Before establishing a Wealth Creator strategy, families should consider:

• affordability
• existing RESP strategy
• emergency reserves
• debt
• insurance needs
• time horizon
• liquidity requirements
• policy structure
• insurance underwriting
• alternative uses for the capital
• expected long-term objectives

The right funding amount is the amount that can be comfortably sustained without compromising more immediate financial priorities.

A Financial Gift That Can Outlive the Occasion

Children eventually outgrow toys.

Technology becomes obsolete.

Many gifts are forgotten.

A thoughtfully designed financial asset has the potential to serve a much different purpose.

It can become an opportunity to teach the next generation about:

saving

capital

financing

opportunity cost

long-term thinking

and ultimately:

how to build, control, access and transfer wealth.

That may be one of the most enduring financial lessons a parent or grandparent can provide.

Is Wealth Creator Right for Your Family?

Wealth Creator does not replace every RESP, investment account or savings strategy.

And permanent life insurance is not appropriate for every family.

The objective is to compare the alternatives and determine what combination makes sense for your family, resources and objectives.

If you are already saving for a child or grandchild and would like to compare:

RESP

traditional investing

Wealth Creator

or potentially a combination,

I can help you understand how the approaches differ, including their flexibility, guarantees, risks, costs, tax considerations and long-term uses.

Give Them More Than Money.

Help Them Build a Financial Foundation.

[Explore Wealth Creator With Dave]

Dave Otto, CFP®, CLU®
Financial Planner | Founder & President, DO FINANCIAL
Authorized IBC Practitioner

Rethink how you build, control, access & transfer wealth.