The KAIZEN Financial Planning Process™



Put your business to work for your RETIREMENT.

In the past, owners and key executives of small businesses were disadvantaged by pension rules that limited their participation in traditional registered retirement savings plans (RRSPs).

With changes in 1991 to income tax legislation, Individual Pension Plans (IPPs) and Advanced Individual Pension Plans (AIPPs) were developed to eliminate that disadvantage and offer a retirement savings solution better suited to high-earning individuals.

In the most basic terms, an IPP/AIPP™ is a defined benefit pension plan set up for one person — most often the owner of a business. Sanctioned by the Canada Revenue Agency, IPP/AIPPs™ allow higher tax-deductible contributions and, in turn, higher tax-deferred accumulations of wealth than traditional RRSPs and non-IPPs. With IPP/AIPPs™ you can:

  1. obtain larger tax deductions compared to an RRSP
  2. make contributions for past service
  3. protect your assets from creditors
  4. retain ownership of plan assets
  5. guarantee lifetime income for plan members and their spouses
  6. amend the plan terms at retirement
  7. make investment management fees tax deductible

IPP/AIPPs™ are a good option for executives and business owners (aged 40 years and older) who have historically maximized their RRSP contributions and have the income to support this tax-deferral arrangement (T4 income of more than $100,000). The plan must be sponsored by an incorporated company.