Jonathan Chevreau, Personal Finance Columnist from the National Post Interviews Bruce Youngblud from Ancaster Financial.
For a copy of this interview in PDF format, please click here
Professional or executives that have reached their limit in RRSP contributions should consider, Individual Pension Plans (lPP). Individual Pension Plans provide significant tax advantages, potentially higher pension benefits, and save you on taxes throughout retirement.
Individual Pension Plans (lPPs) are becoming popular with professionals an executives. An Individual Pension Plan (IPP) may be able to provide higher pension benefits for small business owners and there is the potential to save more funds for retirement because there are higher contribution limits than RRSPs.
If you are an incorporated business owner, incorporated professional, or senior executive, you could be a good candidate for an Individual Pension Plan.
At retirement, an individual's income may come from investments, government pensions, inheritances and, most commonly, RRSPs. An Individual Pension Plan (IPP) can be a useful alternative to the more widely accepted RRSPs .
The amount of the contribution depends on the member's age and salary, and may be subject to certain restrictions. If the member is over the age of 40, the annual contribution may exceed the maximum RRSP limit. When establishing an Individual Pension Plan, a one time adjustment is included in the calculation.
You may decide to establish an IPP to diversify your retirement strategy or to increase your retirement savings over a relatively short time.
As a business owner you may want to establish an Individual Pension Plan to deduct contributions or to protect your income.
An IPP may also provide a tax-efficient method of transferring value in succession planning or on the sale of a business.
Mutual Funds offered through Worldsource Financial Management Inc.
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