Understanding Retirement Compensation Arrangements for High-Income Earners

Today we dive back into pensions for incorporated professionals. On this ride, we compare and contrast 2 good pension options: the individual pension plan (IPP) and the Healthcare of Ontario Pension Plan (HOOPP).

For today's chat I'm happy to welcome Sean Wilson (CFP, CIM), founder of Moraine Wealth Advisory, and Navaz Cassam, president & chief actuary of GBL Inc.

HOOPP vs IPP White Paper:

https://morainewealth.com/blog/hoopp-vs-ipp/

Discussion points:

- overview of pensions (1:45)

- introduction (2:42)

- what is a defined benefit (DB) pension plan? (4:38)

- the DB pension formula (5:20)

- establishing earnings for a pension plan (8:03)

- pension eligibility (9:43)

- pension plan contributions (11:43)

- why are extra contributions helpful? (14:40)

- IPP special contributions (19:10)

- impact of disability (21:23)

- IPP investing - DIY & control (21:50)

- IPP costs (26:32)

- flexibility & control in a pension plan (28:03)

- withdrawing from a pension (32:46)

- terminal funding (33:54)

- considerations for a retirement compensation arrangement (36:36)

- indexing the defined benefit to inflation (38:40)

- IPP projections - starting age 40 with $200K of T4 income (40:18)

- who shouldn't consider a pension? (45:37)

- closing thoughts (47:38)

Yatin Chadha

NYGH Fundraiser: 

https://donate.nyghfoundation.ca/site/TR/Events/Rally_in_the_Ravine?px=1561359&pg=personal&fr_id=1310

LinkedIn: Yatin Chadha

beyond Radiology:

https://beyondradiology.thinkific.com/products/courses/ct-head-interpretation-course

https://beyondradiology.thinkific.com/courses/master-ct-head-interpretation-course

Sean Wilson

https://morainewealth.com/

https://www.linkedin.com/in/sean-m-wilson/

Navaz Cassam

https://www.linkedin.com/in/navaz-cassam-0b025716/