Ep. 18 Case Conference: Pensions for Incorporated Business Owners

In this episode of Money Scope, Benjamin Felix and Dr. Mark Soth take a deep look into pension options for Canadian incorporated professionals. Building on their previous pension episode, they analyze whether Individual Pension Plans (IPPs) or Multi-Employer Pension Plans (MEPPs) like HOOP make sense through real-world case studies. Financial planner Aravind Sithamparapillai joins to break down detailed modeling of HOOP and how it compares to RRSPs, IPPs, and RCAs. The conversation tackles tax implications, income planning, and behavioral factors that affect pension decisions—equipping listeners with a clearer framework to assess their own options.

 

Key Points From This Episode:

 

• [00:00:12] Overview of pensions for Canadian business owners

• [00:01:44] Case studies preview: IPPs and MEPPs

• [00:03:34] Complexity of pension planning and HOOP analysis

• [00:05:09] IPP Case 1: High income but scaling back work

• [00:08:14] Modeling impact of IPP on flexibility and income stability

• [00:10:32] IPP Case 2: Dual high-income professionals and tax strategy

• [00:13:28] Use of different compensation types to manage RDTOH

• [00:15:05] IPP Case 3: Moderate income and $2.5M corporate portfolio

• [00:18:11] Incremental benefit of IPPs for this income bracket

• [00:20:35] Introduction of guest Aravind Sithamparapillai

• [00:23:49] Role of pensions in providing reliable income

• [00:26:59] Choosing the right MEPP: HOOP's track record

• [00:31:12] How HOOP benefits are calculated for physicians

• [00:36:44] Base case: RRSP vs. HOOP for a 30-year-old physician

• [00:41:01] Retirement certainty and estate value trade-offs

• [00:44:42] Impact of inflation indexing on HOOP's value

• [00:48:13] Conflicts of interest in pension advice

• [00:52:18] Summary of the case: HOOP increases certainty, reduces estate

• [00:58:19] Flexibility of joining HOOP later in a career

• [01:04:32] Modeling late-career contributions and outcomes

• [01:07:04] Internal rate of return benefits of contributing later

Links From Today's Episode:

 

Dr. Mark Soth (The Loonie Doctor) — https://www.looniedoctor.ca/

Dr. Mark on X — https://x.com/LoonieDoctor

Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/ 

Benjamin on X — https://x.com/benjaminwfelix

Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/