Three Wealth Strategies Every Incorporated Professional Can’t Afford to Ignore
Busy schedule? No problem. You can grow, protect, and even extract wealth from your corporation efficiently - without spending hours on complicated finance. For self-employed professionals - lawyers, accountants, doctors, dentists, or contractors - these strategies leverage both your personal and corporate structures to maximize growth and protection.
1. Individual Pension Plans (IPP) - Supercharge Retirement
For high-earning incorporated professionals, a corporate-sponsored IPP is one of the most powerful retirement tools:
Higher Contributions: Unlike RRSPs, IPPs allow larger tax-deductible contributions, especially once you’ve reached your RRSP contribution limit.
Predictable Growth: Defined benefit plans provide a guaranteed retirement income based on your salary and years of service.
Corporate Advantage: Contributions are made by your corporation, reducing corporate tax while building your retirement nest egg.
For professionals who have maximized their RRSP contributions, an IPP can significantly enhance retirement planning with predictable, tax-efficient growth.
2. Corporate Life Insurance - Protect & Preserve Wealth
Corporate-owned life insurance is more than protection - it’s a strategic tool for wealth preservation:
Liquidity for Shareholder Buyouts or Tax Liabilities: Your corporation has immediate access to funds if needed.
Tax-Free Death Benefit: Proceeds received by the corporation are generally tax-free, preserving capital.
Access to the Capital Dividend Account (CDA): Certain proceeds can be added to your CDA, enabling tax-free dividends to shareholders.
This strategy ensures both personal and corporate wealth is protected while providing financial flexibility for future business or family needs.
3. Corporate Shared Critical Illness (CI) - Income Protection
Incorporated professionals face unique risks - what if illness prevents you from working? A corporate-shared CI policy can safeguard both you and your business:
Coverage for High Earners: Protects your personal income and business cash flow if you become critically ill.
Tax-Efficient Structure: Premiums can often be paid through the corporation, providing potential tax advantages.
Peace of Mind: Protects personal finances, business obligations, and employees who depend on your leadership.
This is an essential layer of protection for professionals whose personal and business finances are closely linked.
Even with a packed schedule, these three strategies help you grow, protect, and optimize your wealth efficiently.
Want a customized plan for your corporation and personal finances? Let’s structure your wealth so it works as hard as you do.