Individual Pension Plans (IPP)
Tax Effective Planning
Individual Pension Plans (IPP). Strategically advantageous retirement preparation options for enterprise owners, self-incorporated professionals, and high-level executives.
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An IPP stands as a sanctioned defined benefit retirement scheme, set up by a shareholder's business entity or an employer, designed to generate a steady income stream during retirement years. IPPs rank as the most advantageous tax-sanctioned retirement structures allowed, providing a pathway for business proprietors, self-incorporated experts, and top-tier employees to grow their pensionable savings more significantly via increased contributions from their employers compared to other retirement strategies.
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ENHANCE CORPORATE INVESTMENTS
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Individual Pension Plans offer select retirement investment choices for senior corporate personnel who have a longstanding tenure. These plans enable such personnel to augment their retirement contributions in accordance with the duration of their service preceding the establishment of the plan. Furthermore, IPPs can be fine-tuned at retirement to amplify benefits, including the option for an early retirement pension devoid of penalties.
For entrepreneurs, an additional perk comes into play: each investment into the IPP by their enterprise is tax-deductible. This encompasses the costs associated with managing the portfolio, the initial setup expenses, and other ongoing operational fees. By investing in your retirement through your company, you can substantially reduce your taxable business revenue.
Is An Individual Pension Plan Right For You?
To make the most out of an Individual Pension Plan (IPP), the prime candidate would typically:
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Be an incorporated entrepreneur or a professional with a high income.
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Be optimally aged between 40 and 71 years.
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Have a historical T4 income surpassing $100,000 annually.
Should you align with these parameters, an IPP could be the ideal tool for orchestrating your retirement strategy. Get in touch for a personalized IPP proposal.
Designated Team Specializing in IPP's
Whole life insurance isn't just about lifelong coverage—it's also a savvy investment strategy. It provides a tax-free growth component, which is a smart move when considering the less favorable tax treatment of traditional corporate passive investments like savings accounts, stocks, mutual funds, or bonds. These can negatively impact your qualification for the small business tax rate. A strategic shift can be made by reallocating part of your passive assets into a tax-exempt life insurance policy, allowing these funds to increase in value tax-free while maintaining your eligibility for small business tax advantages.
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Our team of dedicated insurance professionals, in collaboration with our tax and estate planning experts, will take the time to thoroughly explore these opportunities with you to tailor a strategy that fits your unique circumstances perfectly.
