The Problem: Corporate Investing Is Different
Investing inside a corporation is not the same as investing personally. The rules are different. The tax rates are different. The risks are different.
Yet, many business owners—and even some advisors—treat a corporate account like a large RRSP. They fill it with standard balanced funds, GICs, or high-yield dividend stocks. In a personal account, these might be prudent choices. In a corporation, they can be tax inefficient.
- Interest income is taxed at ~50% upfront.
- Passive income over $50,000 can reduce your small business deduction (the "SBD Grind"), raising taxes on your active business income.
- Trapped capital (RDTOH) can sit idle with the CRA if you don't have a dividend strategy to recover it.
Without a specific corporate strategy, you may be earning decent market returns but keeping far less than you should.
Our Approach: Structure Before Selection
We don't start with "hot stocks" or product pitches. We start with the container. If the structure is wrong, the best investment selection in the world won't fix the tax leakage.
1. Structural Diagnosis
We review your current setup to answer critical questions:
- Is your HoldCo properly separated from your OpCo?
- Are you effectively using Corporate Class structures to convert interest income into capital gains?
- Is your passive income threatening your Small Business Deduction?
- Are you accumulating "trapped" refundable taxes (RDTOH) that need to be cleared?
2. Asset Location Strategy
We determine where to hold what. By placing the right assets in the right accounts (Corporate vs. RRSP vs. TFSA vs. IPP), we can significantly reduce your total family tax bill without changing your risk profile.
3. Institutional Implementation
Once the structure is defined, we implement it using:
- Independent Investment Managers: We are not tied to a single bank's shelf. We select managers with proven track records of protecting capital and delivering consistent returns.
- Private Pools & Alternatives: For qualified investors, we access private credit, real estate, and infrastructure strategies that offer diversification beyond public markets.
- Tax-Efficient Funds: We utilize Corporate Class funds and T-Series structures designed specifically to minimize annual taxable distributions.
The Result: A Portfolio Built for Decades
Our goal is not just to beat the market this quarter. It is to build a wealth engine that survives you. A dynasty-style portfolio is:
- Resilient: It separates business risk from family wealth.
- Efficient: It minimizes the "silent erosion" of tax drag.
- Intentional: Every dollar has a job—whether for liquidity, retirement, or legacy.
Common Questions
"Can I just leave the money in cash?"
You can, but inflation ensures you lose purchasing power every year. More importantly, interest on cash is taxed at the highest corporate rate. You take zero market risk, but suffer guaranteed purchasing power loss.
"Why not just pay it all out to me?"
Extracting everything triggers immediate personal tax (up to ~53% in top brackets). Leaving it in the corporation allows you to defer that tax and invest "pre-personal-tax" dollars. Over 20 years, investing a larger starting capital base inside the corporation usually outperforms investing a smaller after-tax amount personally.
"Do you manage the money yourself?"
No. We are allocators, not stock pickers. We hire specialist investment managers who dedicate their careers to specific asset classes. Our job is to manage the structure, the tax strategy, and the managers—so you can focus on your business.
Important Notes
Mutual funds are offered through WhiteHaven Securities Inc. Investment products and related services are provided through WhiteHaven Securities Inc. Insurance products and certain other services are provided through iAssure Inc., an independent firm in the insurance of persons and in the group insurance of persons. These activities are neither the business nor the responsibility of WhiteHaven Securities Inc.
This is educational content only. Corporate investing requires professional advice. Strategies involving tax, investments, and insurance must be coordinated with your CPA, lawyer, and qualified advisors. Always review your plan as rules and circumstances change.