TORONTO, Feb. 27, 2012 /CNW Telbec/ - As the RRSP season winds down, B2B Trust is suggesting that advisors take advantage of the opportunity to review retirement plans with their clients. In fact, this is an opportune time for them to examine their clients' global investment strategy and to evaluate the appropriateness of contracting a loan to boost their RRSP contributions and, thus, be better able to achieve their retirement objectives.
B2B Trust provides financial advisors with various different investment loan program options. Advisors can offer their clients loans under the company's standard RRSP loan program, or under the banner of its distribution alliance loan program thanks to agreements concluded with a good number of financial intermediaries across Canada.
The type of program selected will depend on the form of investment desired by the client. For its part, the rate granted for the repayment of the loan will vary based on the term chosen and whether the client opts for a fixed or variable rate. Furthermore, in order to facilitate repayment — in case of an expected tax refund, for example — an option to defer repayment for up to six months can be applied.
Advisors may counsel their clients to contract an investment loan to enable them to borrow funds in order to increase the value of their estate outside of an RRSP. In addition, such a loan allows clients to boost the return of capital invested because, as the initial amount is greater, the yield is generated more rapidly. Moreover, another benefit of investment loans for savers is that the interest paid is tax-deductible.
These investment loans are available via three programs:
- The Standard Loan Program is offered for loans aimed at acquiring mutual funds. This program makes it possible to purchase funds with a single loan account and to select from the largest variety of funds.
- The Select Loan Program enables the investor to purchase eligible mutual funds as collateral from multiple B2B Trust distribution alliances. Investors receive discounted pricing and obtain significant portfolio diversification with a single loan.
- The Distribution Alliance Loan Program is offered for the acquisition of segregated and mutual funds. The program allows for investing within the same family of eligible funds offered by one distribution alliance at preferred rates.
Once the program is selected, the range of loans B2B Trust offers advisors provides investors with a choice of four distinct options that all feature competitive rates:
100% Loan: The client borrows 100% of the investment.
3 for 1 Loan: B2B Trust lends up to three times the initial amount paid by the client.
2 for 1 Loan: B2B Trust lends up to twice the initial amount paid by the client.
1 for 1 Loan: B2B Trust matches the amount paid by the client.
Advisors who wish to obtain more information about the different products offered by B2B Trust are invited to consult the company's Web site at www.b2btrust.com.
About B2B Trust
B2B Trust provides advisors with a wide range of financial products and services for distribution to their clients across Canada. It is a leading third-party supplier of investment and RRSP loans, a premier supplier of wholesale deposit products, and a long-time provider of self-directed accounts, banking services and broker mortgages. With its head office located in Toronto and regional sales representation across the country, the company's suite of products and services are available nationwide. B2B Trust is a federally chartered trust company and wholly-owned subsidiary of Laurentian Bank of Canada, a banking institution active throughout Canada that offers its clientele a diversified range of financial services. B2B Trust can be found online at b2btrust.com.
For further information:
Media and Public Relations
B2B Trust / Laurentian Bank
514 284-4500, extension 8232