Ep 17: Live at PFI 2024

The Money Scope Podcast

Today, we bring you another live episode, this time from the Annual Canadian Physician Financial Wellness Conference. We answer a series of compelling audience questions — drawing on information from past episodes — that meaningfully impact both sides of the client-advisor relationships. To kick things off, we break down the best time to incorporate, the downsides of incorporating too early, getting money out of your corporation tax efficiently, and common misconceptions around tax efficiency. Next, we discuss the changes in capital gains tax and if it still makes sense to incorporate despite the increase, whether you should pay debt or invest as you juggle all your different priorities, and when to take dividends versus salary. We also get into the topic of corporate bloat and how to address it through measures like smoothing out consumption, why you need to know your notional account balances, insights on dividend-paying ETFs, and advice for alternative investments, including real estate. To close, we discuss how you can determine when you’ve reached financial independence and how a professional financial planner can help you make that call, along with a few final audience questions. Join us to hear the full scope of today’s conversation on navigating the ins and outs of getting incorporated, tax efficiency, and much more!

Key Points From This Episode:

(0:00:31) An update on Money Scope and the tools we’ve been developing.

(0:03:32) Our first audience question: when should you incorporate?

(0:05:59) Getting money out of your corporation to pay off credit tax-efficiently.

(0:08:01) Common misconceptions around tax efficiency and tax deferrals.

(0:13:19) Unpacking if it’s still better to incorporate after the capital gains tax increase.

(0:16:03) A breakdown of whether you should pay off your debt or invest.

(0:20:19) The conditions under which you should take dividends versus salary.

(0:23:12) Insights on corporate bloat and methods for addressing it.

(0:32:14) How to come up with an optimal compensation strategy.

(0:36:50) What you need to ask your advisor or accountant about: notional account balances.

(0:39:01) Exploring whether there’s a role for dividend-paying ETFs during long-term investing within a corporate investment account.

(0:45:29) Reasonable alternatives to investing, other than ETFs, particularly when you reach the passive income limit.

(0:53:32) How you can tell when you’ve reached financial independence.

(0:59:08) Ways to approach optimal charitable giving throughout your life.

(01:01:02) The role of a family trust as a way for inheritance planning within a medical corporation.

Links From Today’s Episode:

Salary and Dividend Optimizer Calculator — https://www.looniedoctor.ca/ccpc-income-disperser/

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/