A PPP® helps incorporated professionals accumulate significantly more in retirement savings, safely transfer their wealth to the next generation, and at the same time pay less tax than 98% of Canadians.
Here are the top five reasons why every business owner should consider a PPP®:
1. Shelter More Income – Business owners will be able to accumulate significantly more retirement savings to maintain their lifestyle in retirement. The PPP® provides increased contribution limits on an annual basis.
2. Greater Scope for Investments – There is greater flexibility to invest in a wide range of non-traditional assets (real estate, land, private equity funds) that are not available within an RRSP.
3. Corporate Tax Deductions – There are 7 new types of tax deductions inside of a PPP® that you cannot find inside of an RRSP. The PPP® solution allows for large tax deductions in a corporation for things like the purchase of past service, special payments, and terminal funding.
4. Safety of Your Assets – Your savings within a PPP® are protected from the claims of trade creditors, and furthermore, we offer a tax-exempt roll-over of the existing RRSP assets, which will provide further protection of all registered assets.
5. Intergenerational Wealth Transfer – The PPP® is a powerful solution when utilized within the context of a family business. PPP® members are able to transfer family and corporate wealth to the next generation without any tax consequences as the assets never form a part of the estate.
Build a plan that looks after you, your family, and your business so that you can relax and focus on what's most important. Depending on when you would like to retire, the lifestyle you’d like in retirement, and what kind of future you want for your business, a PPP might be the ideal option for you.