I'm going to let Mr. Steve handle this one.Exactly. So why would you invest in a non-reg account with after-personal-income-tax-dollars, when your corp can invest non-registered funds with after-"corporate"-tax dollars?! That article misses the point completely. The key difference is between investing 53 cents on the dollar (after 47% personal tax), and investing 85 cents on the dollar (after 15% corporate tax). Thats huge! Who cares if the interest is taxed the same way when there is that much more interest to be taxed?
Said the government worker... Man I hate giving the government back a portion of the money they gave me... .But none of those three scenarios equates to the reality of my situation.
And please don't get me started on tax avoidance... This is probably not the place for a rant... But... Please do not get me wrong; I love this country, I am an extremely proud Canadian, and I particularly love the socialist bent to our health care funding, makes my job particularly easier knowing that I don't have to be concerned about what things cost: I just order the tests and procedures that are required... But... Writing $50,000 quarterly cheques to CRA gives a certain clarity of focus to any hint of waste in government... let's just say an era of smaller, more-efficient governments would not be unwelcome... And if I can save a little more for my kids through a government sanctioned tax avoidance strategy, then I will not hesitate to do that... In fact, I'd be crazy not to!
Wasn't an attack at all, don't worry. My mom feels the same way about her job, and apparently before McGuinty made changes to MD comp she was doing the exact same work for 1/3 the pay. She now gets paid for a load of things she did for free before, and while she feels like she's overpaid now, she's not complaining.Well said.
I don't ever want to sound entitled or ungrateful. I love what I do. I love everything about this country that has afforded me the opportunity to do it... And I'm excedingly grateful and fortunate to be paid well for doing what I love.
If you want an exact analysis - you need to hire the appropriate person and pay some money (as MG suggested). This might not be a bad idea.But none of those three scenarios equates to the reality of my situation.
The 153K result means, that (except for tax on salary and RRSP withdrawals, CPP, etc) all investment income associated with monies outside your RRSP (i.e. your nonreg capital) will be untaxed. I can't see how managing this money in a holding company could improve that.If you want an exact analysis - you need to hire the appropriate person and pay some money (as MG suggested). This might not be a bad idea.
In the meantime, if you assume that your scenario (using the advantages of the corporation etc) will be better tax-wise than Steve's scenario, then you can use his numbers as a minimum income level approximation.
How come? Are you planning to retire in a year or two? I would think you'd be most interested in growing your total assets, cashflow/income be damned.What matters is that our investments (TFSAs and Corporate Savings) generated ~$3000 in dividends, interest, and option premium in 2013 and they're currently on track to generate slightly more than $7000 in 2014........ That's the number I'm tracking with vigour.... growth in cash-flow is our only real concern now....