Business Owners: This RRSP Mistake Could Costs You Millions

BOOK A CALL WITH US NOW: https://www.controlandcompound.com/contact-us   Should incorporated Canadian business owners contribute to an RRSP — or is it quietly working against them?   On today's episode, Darren and Christina break down what an RRSP actually is (a tax deferral, not a wealth strategy), why the "you'll be in a lower tax bracket in retirement" assumption often fails for successful business owners, and how forced RRIF withdrawals + OAS clawbacks can create a much higher effective tax rate later.   They also dig into the control problem: how locking money into RRSPs can limit liquidity, reduce flexibility, and increase opportunity cost for entrepreneurs who typically earn their highest returns in their business. Finally, they address the estate planning reality — how large RRSP balances can make CRA a major beneficiary.   If you're a business owner, this is the episode to listen to before you follow the herd. Show notes:   00:00 - Introduction   02:36 - RRSP basics: tax deferral today, taxed as income later 03:22 - The "lower tax bracket in retirement" assumption falls apart 05:19 - Why business owners often retire in the same or higher tax bracket 06:21 - Real Ontario examples: income drops, tax rate barely changes 07:20 - OAS clawback explained (effective extra tax) 10:05 - The shocker: deferring ~45% to later pay ~58% effective tax 15:55 - The control problem: RRSPs lock up entrepreneur liquidity 19:20 - Corporate opportunity cost: $0.88 in a corp vs $0.50 later 23:59 - Estate planning: why CRA can become your biggest beneficiary FIND US ON:   INSTAGRAM: https://www.instagram.com/controlandcompound/   TIKTOK: https://www.tiktok.com/@controlandcompound?lang=en   LINKEDIN: https://www.linkedin.com/company/darren-mitchell-associates-inc/?viewAsMember=true Thank you for tuning in to this episode. The information contained in this podcast is for informational and entertainment purposes only, and is separate and apart from the wealth coach services provided by Darren Mitchell and Associates, Inc. To its qualified clients, Control and Compound Financial expressly disclaims any and all liability or responsibility for any direct, indirect, incidental or any other damages arising out of any individual's use of this podcast or the information in it. The views expressed here are those of each participant and guests, and not necessarily those of or endorsed by Control and Compound Financial, its affiliates, subsidiaries, and their respective directors, shareholders, officers, or employees. For full disclosure, visit controland compound.com/podcast-media.