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THREE NEW CHOICES: LEAGUE'S TAX-EFFICIENT,
FIXED-CASHFLOW INVESTMENT |
Tuesday, June 30, 2009
Dear Member-Partners and friends,
Once again, we have compared the best GIC and Government of Canada Bond rates (source: gicdirect.com and bloomberg.com respectively) and found that the IGW REIT's three new Income Priority Unit choices currently beat these investments by an average of 5% per annum. Of course, an investment in Income Priority Units is less liquid and has a different risk profile than an investment in a GIC or government debt.
Here's what we found:
More Cash Flow...
- For a $100,000 investment in the One-Year IPUnits, Member-Partners will receive $541.67 per month - for a total of $6,500 for the year.
- For a $100,000 investment in the Three-Year IPUnits, they will receive $666.67 per month - or $8,000 for each year.
- For a $100,000 investment in the Five-Year IPUnits, they will receive $770.83 per month - or $9,250 for each year.
More Tax-Efficient Than Interest Income...80% More!
We assume that the Income Priority Units will be 80% tax-efficient. This means that whereas distribution from a traditional interest-bearing investment would be 100% taxable, only 20% of the cash flow you receive from IPUnits are taxable. That, of course, means more money you can spend, save, or re-invest as you wish.
An After-Tax Case Comparison...
Assuming a marginal tax rate of 44% and a tax-efficiency of 80%, the after-tax return from the One-Year IPUnits is 5.93%. The after-tax return from the Three-Year IPUnits is 7.3%, and the after-tax return from the Five-Year IPUnits is 8.44%.
To get that net return from a traditional interest-bearing investment, you would have to earn 10.59%, 13.03% and 15.06% respectively!
More Dependability and Security...
Distributions paid on the new Income Priority Units are fixed -- not variable. They are backed by the REIT's legal obligation to pay the return for the duration of the investment.
As I indicated in a recent letter, these rates and terms are subject to the prevailing interest rate and market conditions, and will therefore not be available forever.
We at League are thrilled and proud to offer our Member Partners this new tax-efficient, fixed-income investment, and we hope you'll take advantage of the current rates of return while they last.
Sincerely, | 
Emanuel F. Arruda, Founding Partner
League Assets Corp.
Learn, Earn, Live, Give.™
--------------------------------------------------------------------------------------------"There comes a time when you realize that virtually anything is possible -
that nothing is too good to be true."
- Kobi Yamada -
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* Assumes continual renewal and tax-deferral year after year.
Statements in this document concerning future financial performance of the Income Priority Units are subject to among other things, risks, uncertainties and assumptions about the IGW REIT’s business, economic factors and real estate markets generally. They are not guarantees of future performance, and actual events and results may differ materially from those expressed or implied by forward-looking statements included in this document. Other than as required by law, we assume no responsibility to update forward looking statements.
There are risks associated with this investment, which is being made primarily by offering memorandum available from our offices. Persons resident in Ontario must be accredited investors or be investing a minimum of $150,000 in order to subsribe for this or any investment administered by League Assets Corp. |
Reminders...
The State of the Units Report for the REIT is published quarterly in March, June, September and December on this web page. This includes detailed updates on ongoing activities at each property.
Distribution payments for the REIT begin on the 21st day of the month following the day you invest. You need not wait until the next revaluation to subscribe and begin receiving your distribution payment.
Tax slips are issued for Limited Partnership and REIT unitholders by March 31st each year. Please note that electronic filing is not possible for Limited Partnerships less than one year old.
New unit values for the REIT are announced on the last day of February, May, August and November. Complete portfolio reappraisals take place prior to the May and November revaluations. At the February and August revaluations, only those properties that we expect to have changed in value are selected for reappraisal. To review how the revaluations are performed, click here or review the Frequently Asked Questions section of the current Investment Overview available in the Members Area. |
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