Friday, 16 September 2011

Executive Pension Plans: Tax Free?

Why bother risking the wealth you have worked for all your life? Plan wisely, and consider an executive pension plan! There are much better ways for you to save than through a Registered Retirement Savings Plan (RRSP). Save thousands of your corporate taxes this year!

What Can You Do with an Executive Pension Plan?
While there are numerous benefits to having executive pension plans (EPPs), but the most obvious benefit is executive pension plans can dramatically increase your retirement savings, even when compared to an RRSP. Unlike an RRSP where the maximum allowable contribution is limited to the earnings of the individual, an EPP does not have the same limitations. This is especially beneficial to higher income earners where investments will determine how much will be tax-deferred. Contributions made to the pension plan are tax-deductible in Canada, by not only the employee, but deductable by the employer as well!

Are Executive Pension Plans Difficult to Setup?
Before setting up executive pensions, it is commonly recommended that you first consult a certified financial planner, at a brokerage like Ten Star. Consulting with a professional with years experience is advice you can appreciate. Your Ten Star Financial adviser knows that contributions made to the fund allow the participants to make additional contributions as well.

Finding a Financial Planner for Business
When discussing financial options with your adviser, prepare a short list of questions before the meeting. Finding a knowledgeable adviser with experience dealing with the type of financial planning you need, can help you in the long run, so remember to take your time when finding the most appropriate adviser for your needs.

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