For many business owners, your company isn\u2019t just your career\u2014it\u2019s your baby. But as you think about the future, it\u2019s important to create a financial plan that lasts beyond your business. Building a \u201cpension-like\u201d investment through your corporation has the potential to set you up for retirement with a steady income stream, whether through salary or dividends.<\/p>\n
Here\u2019s how you can make it happen while maximizing the benefits of your business structure:<\/p>\n
Create a \u201cpension-like\u201d investment plan <\/strong> Use corporate investment accounts to maximize tax efficiency<\/strong> Keep your money in your corporation<\/strong> Enjoy access to a full range of investment options<\/strong> As of June 2024, capital gains realized within a corporation now have an inclusion rate of 66%, increased from 50%. This means 2\/3 of your capital gain is taxable at the corporate rate, so careful planning is essential. While this change might seem daunting, with a smart investment strategy, you can still grow your savings efficiently. Be sure to consult with your financial professional to create a strategy that works best for you and your business.<\/p>\n To summarize the above, saving through your business isn\u2019t just about wealth\u2014it\u2019s about creating financial freedom for the life you want after work. By leveraging the benefits of corporate investment accounts and staying mindful of tax strategies, you can turn your business into a powerful tool for your future.<\/p>\n Curious about how to make your business work harder for you? We can start a conversation and explore how to create a plan that works for your goals\u2014today and tomorrow. Check out my website Julie Shipley-Strickland \u2013 Wellington-Altus Private Wealth<\/a> and don\u2019t forget that I\u2019m always putting up important financial tidbits and updates via my Wealth With Julie Instagram<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":" For many business owners, your company isn\u2019t just your career\u2014it\u2019s your baby. But as you think about the future, it\u2019s important to create a financial plan that lasts beyond your business. Building a \u201cpension-like\u201d investment through your corporation has the potential to set you up for retirement with a steady income stream, whether through salary […]<\/p>\n","protected":false},"author":116,"featured_media":1240,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_oasis_is_in_workflow":0,"_oasis_original":0,"_oasis_task_priority":"","_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1239","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/advisor.wellington-altus.ca\/julieshipleystrickland\/wp-json\/wp\/v2\/posts\/1239","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/advisor.wellington-altus.ca\/julieshipleystrickland\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/advisor.wellington-altus.ca\/julieshipleystrickland\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/advisor.wellington-altus.ca\/julieshipleystrickland\/wp-json\/wp\/v2\/users\/116"}],"replies":[{"embeddable":true,"href":"https:\/\/advisor.wellington-altus.ca\/julieshipleystrickland\/wp-json\/wp\/v2\/comments?post=1239"}],"version-history":[{"count":3,"href":"https:\/\/advisor.wellington-altus.ca\/julieshipleystrickland\/wp-json\/wp\/v2\/posts\/1239\/revisions"}],"predecessor-version":[{"id":1243,"href":"https:\/\/advisor.wellington-altus.ca\/julieshipleystrickland\/wp-json\/wp\/v2\/posts\/1239\/revisions\/1243"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/advisor.wellington-altus.ca\/julieshipleystrickland\/wp-json\/wp\/v2\/media\/1240"}],"wp:attachment":[{"href":"https:\/\/advisor.wellington-altus.ca\/julieshipleystrickland\/wp-json\/wp\/v2\/media?parent=1239"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/advisor.wellington-altus.ca\/julieshipleystrickland\/wp-json\/wp\/v2\/categories?post=1239"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/advisor.wellington-altus.ca\/julieshipleystrickland\/wp-json\/wp\/v2\/tags?post=1239"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nYour business can do more than provide income now\u2014it can secure your retirement too. By creating an investment account within your corporation, you\u2019re setting up a future income stream that stays intact even if you sell the business. This could allow you to draw a salary or dividends in retirement, ensuring financial stability while your savings keep working for you.<\/p>\n
\nOne of the perks of investing through your corporation is paying taxes at the corporate rate, which is generally lower than your personal rate. By triggering tax on your investments within the corporation, you keep more of your money growing in the account. This strategy can offer significant savings over time while keeping your funds in a tax-efficient environment.<\/p>\n
\nInvesting in your corporation lets you defer personal taxes until you decide to pay yourself. Essentially, you\u2019re using after-corporate-tax dollars for investments, and personal tax is only triggered when funds are withdrawn. This deferral allows your money to grow longer, giving you flexibility and greater control over your financial future.<\/p>\n
\nA corporate investment account doesn\u2019t limit you to basic investment tools\u2014you still have access to a broad spectrum of choices. As the business owner, you\u2019re in the driver\u2019s seat. You decide on the level of risk, timeline, and financial objectives, creating a strategy that aligns with both your business and personal goals.<\/p>\n