Taivi Tayler, Tayler Insurance
Special to Barrie Construction News
A successful business owner in her early 50s approached us with a clear objective: she wanted to secure her retirement by turning corporate earnings into personal wealth—without increasing her salary or dividend income.
With a thriving incorporated business and healthy retained earnings, she was looking for a strategy that would allow her to extract funds tax-efficiently and build a stable retirement income stream for when she sold the business.
Our Solution: Establishing an Individual Pension Plan (IPP)
An IPP is a corporate-sponsored defined benefit pension plan, much like the ones enjoyed by government employees or workers at large institutions. For incorporated professionals and business owners, it offers a powerful way to accelerate retirement savings, reduce corporate taxes, and protect assets.
Here’s how it helped this client:
- Her corporation made larger, tax-deductible contributions than what she could put into an RRSP
- She used previous years of T4 income to make an additional lump-sum contribution, creating an immediate corporate tax deduction
- The assets in the plan are creditor protected, adding an extra layer of financial security
- Contributions and growth within the plan are tax-sheltered until retirement, allowing her wealth to accumulate more efficiently
A Fully Funded Personal Pension
She now has a fully funded personal pension—paid for by her corporation—without increasing her personal income today. The result is a smarter, tax-efficient way to move corporate dollars into her retirement plan, providing long-term confidence and a clear path toward a secure financial future.
At Tayler Insurance & Estate Planning, our approach is simple and tax-efficient. We help retirees and business owners grow their wealth, mitigate taxes and plan to protect their legacy.
Taivi Tayler, RRC®, CLU®, MFA-P™
CERTIFIED FINANCIAL PLANNER®