By Physicians, For Physicians
As Halloween approaches, we’re surrounded by spooky decorations, eerie costumes, and the occasional jump scare. But for many physicians, there’s something even scarier lurking in the shadows — the possibility of outliving your savings because your retirement plan relied solely on RRSPs.
The RRSP Horror Story
RRSPs have been the go-to for decades, but they can leave you vulnerable. The Income Tax Act limits how much you can contribute each year, and the account offers only one type of deduction.
Worse yet, when the inevitable happens, your RRSP balance can trigger a massive tax bill — as high as 50% — if both you and your spouse pass away together. That’s a fright no one wants their family to face.
Don’t Be Caught in the Passive Income Trap
For those who’ve built wealth inside their Medical Professional Corporation, another monster may be creeping up — the Tax on Passive Income (TOPI), which can grind down your small business tax benefits.
This “Passive Income Grind” can quietly drain your corporation’s resources until your low tax rate vanishes like a ghost at sunrise.
A Pension Plan That Protects You from the Demons
The Canadian Physicians’ Pension Plan (CPPP) offers physicians a light in the dark — a government-registered pension plan designed by physicians, for physicians.
With up to seven additional tax deductions beyond the RRSP, the CPPP helps you build wealth faster and more securely.
And unlike the RRSP, your pension assets can be transferred to your spouse or even your children tax-deferred, keeping your legacy alive for generations.
Don’t Let Taxes Suck the Life Out of Your Retirement
Through your Medical Professional Corporation, CPPP contributions are tax-deductible, investment growth is tax-sheltered, and even your plan management fees can be written off.
It’s like having a financial garlic necklace — keeping the tax vampires at bay.
This October, Face Your Financial Fears
Your career has been focused on everyone’s health and giving them the best solutions you possibly can when times are dire — now it’s time to protect yourself and your family.
Don’t let your future become a ghost story of missed opportunities and frightening tax bills.
Let’s make sure your financial plan is more treat than trick.