IPP: An investment account that is registered under the Income
Tax Act for ONE person, who has set up their own corporation and who works for that
corporation.
IPP accounts are just one of the many accounts types which we
professionally manage for our clients. In all cases we utilize our proprietary risk
management approach. Although IPP accounts have commonly been managed by Investment
Counsel firms such as ours in the province of Quebec, in Ontario these accounts were
more commonly opened with insurance companies as the managers. In recent years, investors
have become increasingly less willing to pay the multiple management fees of insurance
company mutual funds, and have been looking for a more cost effective way to manage
IPP accounts. Our firm manages IPP accounts with the same low fee schedule as we do
any other type of account, as per our fee schedule posted on our web site.
We work with third party actuaries and accountants to determine
whether an IPP structure makes the best sense for the client.
The most likely candidates who would benefit from this type
of account structure:
Ideal Candidates:
are at least 35-40 years old.
have a steady employment income of over $75,000
already maximized your RRSP's
Benefits Include:
Income earned in the plan is tax-deferred until withdrawn.
Better creditor protection than most RRSP's.
Ability to make larger tax-deductible annual contributions
than RRSP's.
Ability to make large tax-deductible lump sum payments for
past service contributions.
Employer paid interest on borrowed funds to make the IPP contribution
and IPP fees are tax-deductible.
More security in client knowing exactly how much retirement
benefits they will receive, ie., it is a defined benefit plan. Investment risk is
on the corporation funding the IPP.
Bear investment environment can erode the value of an RRSP
and make an IPP more attractive.
Call us today to receive a free actuarial quote as to whether
an IPP makes sense for you. Tel: (705) 792-3991
