Can This Entrepreneurial Couple Turn Business Wealth Into a Secure Retirement?
After decades of building their company, they were ready to think about something they’d long deferred: themselves.
In their late 50s, Dinah and Xavier* are a married couple who co-own a successful private corporation in Ontario, who found themselves facing a new kind of decision. Their business had provided for them for years, but as they looked ahead, they realized they’d never put a structure in place to support a gradual exit or long-term income.
Their trusted accountant had worked with Foster Family Office Group before, and felt it was time for a deeper conversation. With retained earnings building inside the corporation and no clear plan to unlock them, the couple wanted to understand their options — and avoid leaving things to chance.
Where They Were Coming From
- A lifetime of reinvesting in the business
- No formal retirement savings strategy
- A desire to reduce taxes and secure future income
- Two adult children — not involved in the business, but part of their long-term thinking
- A growing sense that it was time to start protecting what they’d built
They weren’t looking for a quick solution. They wanted to feel confident that the next steps would hold up financially, legally, and personally.
How We Approached It
We spent time understanding the business, the couple’s goals, and their broader hopes for family and legacy. After walking through several options together — including their accountant’s perspective — we recommended an Individual Pension Plan (IPP).
The IPP offered the structure they were missing, while working in harmony with their corporation and tax strategy.
Why It Fit
The plan offered several key advantages tailored to their stage of life and ownership structure:
- Greater contribution limits for individuals over age 50, compared to RRSPs
- Full deductibility of contributions to the corporation, including past service going back to 1991
- Creditor protection, with assets governed by pension legislation
- Predictable retirement income, managed through a custom investment policy
- Optional family integration, should future roles evolve for their adult children
What It Looked Like in Practice
Working together with our actuarial and legal partners, we moved through the process in five key steps:
- Past Service Review – maximizing initial contributions
- Legal Resolutions & Setup – proper structure and documentation
- Investment Policy – tailored to their time horizon and comfort level
- CRA & Provincial Registration – coordinated by FFO
- Ongoing Administration – arranged with a third-party IPP provider
Throughout the process, we stayed connected with their accountant and ensured all parties had a clear line of sight.
Where They Landed
The initial contribution was substantial — fully deductible to the corporation and structured to grow in a protected, tax-deferred environment. Ongoing contributions will continue to exceed RRSP limits, while the couple now has a pension-style income stream that supports a gradual transition out of the business.
With the IPP in place, we began mapping out next steps: an estate freeze, corporately owned life insurance, and a broader transition plan designed to preserve control, reduce tax exposure, and support intergenerational intentions. They’re still involved in the business — but for the first time, they’re building toward a future defined not just by growth, but by stewardship.
What This Means For…
- The Builder
You’ve focused on growing the business, reinvesting every step of the way. This approach offers a disciplined way to begin securing your own future without losing momentum in the business. - The Steward
Planning is about returns, yes, but it’s also about reducing exposure and staying organized. The IPP creates a clear structure around retirement assets and keeps them aligned with long-term goals. - The Partner
When wealth is tied up inside the corporation, it can feel fragile. This strategy offers reassurance: a sense that things are in motion, that the future is being looked after steadily and without disruption. - The Rising Generation
You might not be involved in the business today, but the way your parents structure their next steps will shape what’s possible for you tomorrow. Strategies like this one show what thoughtful transition can look like.
There’s satisfaction in this work — in helping people like Dinah and Xavier turn complexity into confidence. We’re grateful every time we get to do it, with the patience, discretion, and professional depth that entrepreneurial families deserve.
Let’s Talk
Just a conversation about what’s possible for you, your family, and your business.