EP 11- Should Your Money Live in a Corporation or Personally?

Should you invest personally or corporately?It sounds like a simple question — but for business owners in Canada, the answer can mean tens or even hundreds of thousands of dollars in tax differences over time.In this episode of Advisors Table, we break down the real differences between investing inside your corporation vs. investing personally.In this episode, we unpack:• The difference between registered and non-registered personal investing• When it makes sense to invest personally vs. through your corporation• How corporate investment income is taxed• How corporate investing creates a refundable tax pool• Why dividend planning determines whether refunds get unlocked or sit unused• Corporate investment structures (Holdco / Opco / Investco)Links:We Can’t Build Affordable Housing While Taxing It Like A Luxury TaxFHSA & Home Buyers’ Plan Explained: Why Canada’s Housing System Is So ComplicatedThe $10M Tax Bill When a Business Owner DiesLooking for trusted tax advice?Connect with Sankalp (Sunny) Jaggi at Cedar Consulting Group.Email: [email protected]: cedargroup.caSubscribe if you want practical breakdowns of real tax scenarios.Comment below: Are you investing through your corporation or personally?Timestamps:00:00 – Personal vs. corporate investing: why tax changes everything03:10 – Why most financial plans ignore where money should actually be invested06:05 – Real client story: high-income couple stuck at top tax rates09:00 – How taxes and inflation quietly destroy real investment returns11:55 – Breaking down income types: interest, dividends, and capital gains14:30 – Why capital gains are far more tax-efficient than other income17:25 – Using registered accounts properly (RRSP & TFSA strategy)20:15 – Second-mortgage investing: high returns, but very high tax cost23:10 – Creating an investment holding company to fix the tax problem26:05 – Refundable tax system explained (how corporations recover tax)29:15 – When and how those corporate tax refunds are actually paid out32:10 – Estate and succession benefits of holding investments in a company35:40 – Why professionals (especially doctors) struggle with taxes and cash flow40:55 – Incorporation strategy: paying 12% instead of 54% and reinvesting inside a company45:55 – Buying a home while investing: RRSP Home Buyers Plan & FHSA strategy