The Elevator

The Elevator is a retirement investment vehicle being pitched to investment firms.

It is a retirement investment vehicle specifically targeted at graduating Canadian university and college students. It is a TFSA and RRSP that is designed to provide a significant retirement income, that, when combined with CPP$/$OAS and any other investments, would provide the investor a financially secure retirement.

The Elevator operates under the reality that when equity investments are allowed to compound over $40-45$ years the investor is able to achieve a significant retirement nest egg without ever being required to invest monthly amounts that would negatively affect their lifestyle.

The Elevator$$s formula is quite simple.

The recent graduate invests $$1000$ initially into their Elevator TFSA and subsequently invests $$150/$month$.$ Every year on the initial investment anniversary the monthly contribution amount is increased $$15/$month$.$

After the investor begins to earn a salary of $$50,000$ per annum, they would close the TFSA and allow it grow organically $$ i$.$e$.,$ no further contributions until the point of retirement. At this time, they would open an Elevator RRSP and begin to contribute at the rate stated previously with the $$15/$year increases being factored in$.$

The following assumptions would apply:

$1.6\mathrm{.}4\%$ per year growth of the equity markets $($based on a $50$ year North American equity market average$)$

$2.$ The growth rate is inflation adjusted $($assumption of $2\%$ annual inflation$)$

$3.$ No withdrawals or investment suspensions over the period of the investment.

$4.$ The equity mix would be $100\%$ dividend and growth ETFs until age $62.$ At age $62$ the mix would be switched to $60\%$ equity $/40\%$ fixed income until retirement at age $65.$

$5.$ A $0\mathrm{.}4\%$ annual commission is charged by the Elevator by Wealthsimple

$6.$ All RRSP and TFSA investments would fit under existing RRSP and TFSA government maximums. The maximum contribution would be $$780/$month in non$-$inflation adjusted dollars at age $64.$

$7.$ As contributions are fairly modest $($all monthly amounts are not inflation adjusted$)$ there is no provision for any withdrawals for an initial home purchase. With withdrawals being so modest between ages $22$ to $35$ the investor would be able to set up a TFSA or RRSP to use under current government rules for first time home purchasers.

$8.$ All tax savings from RRSP contributions are not factored in and would be spent or invested at the vehicle holder$$s discretion.

Upon retirement, the investor should have approximately $$1,000,000($in $2021$ dollars$)$ in their RRSP and TFSA, with $22\%$ of that amount being in the TFSA and withdrawable as tax free income.

Additional information

$1.$ Upon sign up with the Elevator would contribute the first $$100$ to their TFSA or the investor would have the option to receive a $$100$ Starbucks card or $$100$ Amazon card $($this would provide a significant nudge to get investors on board.$)$

If the investor cancelled or suspended contributions during the first five years, the $$100$ bonus $($no matter by what means it was received$)$ would have to be paid back to the Elevator by Wealthsimple

$2.$ Parents or grandparents or any designated person, with their consent, would be able to match the contribution of the Elevator investor, or subsidize the overall contribution up to $$100/$month$.$ In the event that the co$-$investor no longer wanted to support the Elevator contributor, the contributor would be responsible for the entire monthly contribution.

Questions to do:$-$

$1.$ What is the main target market, use psychographics

$2.$ What soft message do you want to push out $($not exact wording but explain what you want them to know and feel after your ads$).$

THEME

$3.$ Create three social media paid ads. One on TT$,$ Two on IG$,$ Do one print ad for a billboard.