IPPs & RCAs with Fraser Lang | E004 скачать в хорошем качестве

IPPs & RCAs with Fraser Lang | E004

In the 4th episode of Financial Planning for Canadian Business Owners, Jason Pereira, award-winning financial planner, university lecturer, writer, and host of the podcast Fintech Impact, welcomes Fraser Lang, Senior Vice President of GBL, a financial planning firm focused on retirement planning. They discuss different retirement account strategies including IPPs, RSPs, and RCAs, including different combinations of the three and use cases for each. Episode Highlights: ● 01:05: – GBL currently manages over 1,500 IPPs and about 500 RCAs. ● 01:50: – GBL sets up these accounts and manages them for what Jason considers a very reasonable price. ● 02:55: – An Individual Pension Plan is a self-directed, defined benefit pension plan. ● 03:20: – With a defined benefit plan, the amount of your income that is contributed to your pension plan is predetermined by a formula to increase as you get older. ● 06:58: – If your investments don’t make the promised return, you can get a tax return to make up the difference for your company. ● 07:40: – GBL is usually looking for connected members, or people who own 10% or more in shares of a company. ● 09:33: – Age 38 is the crossover point from an RSP to an IPP. ● 12:57: – One contribution number is the “past service” contribution, calculated for businesses that were founded in 1990 or earlier, of what their IPP and RSP contributions would have been based on their age at the time, and contributing a percentage of that now. ● 17:25: – Additional voluntary contributions are an option through a clause to be able to later deduct money from the account if needed. ● 21:48: – When you retire, you have several options for what happens to the account, including purchasing an add-on pension or a bridge benefit if you retire before age 65. ● 26:45: – The costs to setting up and maintaining an IPP varies depending on which Canadian province you’re in, but runs about $1,400-1,600 per year. ● 27:17: – In a fully funded IPP, you’re looking at about 40% more contributed over its life than you would maxing out an RSP. ● 28:00: – An RCA is one of the most misunderstood planning options, but put simply it is a supplemental retirement plan if your income far surpasses the limits of an IPP or RSP. ● 30:27: – With an RCA, some money is going into an investment account and some goes into a refundable tax account where you are prepaying tax on that money at a lower rate. ● 34:57: – You can defer withdrawal throughout your lifetime with an RCA. ● 39:07: – The setup and maintenance of an RCA has far fewer hurdles than a pension plan does. 3 Key Points 1. Certain pension plan setups allow you to delay and/or lessen the taxes taken. 2. The maintenance costs of these retirement plans are minimal compared to the benefit you can receive from funding one of these accounts. 3. These retirement options allow for the transition of a business to beneficiaries. Tweetable Quotes: ● “The IPP can be a nice diversification tool to get the money out of the corp and have it grow tax-deferred and fully credit approved.” –Fraser Lang ● “Where we see RCAs used a lot is with executives because unlike an IPP where if you’re not the owner of the business there can be some long-term liabilities, with a RCA, even if the room is higher than you need, you don’t ever need to fund that room.” –Fraser Lang ● “The number of use cases for this type of structure is fascinating. Everything from the business owner who’s trying to save for their retirement, the severance cases, the rewarding of executives...” –Jason Pereira Resources Mentioned: ● Website – Jason Pereira’s ● Facebook – Jason Pereira’s ● LinkedIn – Jason Pereira’s ● Jason’s RCAs article ● GBL website–https://gblinc.ca/ ● Email Fraser–[email protected]