Disclaimer: This calculator is basic and for illustrative/entertainment purposes. I have tried to make it accurate, but there is no warranty.  
   
           
   I am not a financial professional and do not sell any stocks, bonds, or funds. I do not provide specific financial advice. There is no explicit or implicit recommendation for the ETFs used. They are examples and you should use whatever best suits you.  
   
   
   
           
  Be sure that any suggestions makes sense for you. You should do your own due diligence and consult experts as needed for your own situation. ALWAYS consult with a professional accountant when making decisions about your corporation and tax planning.  
   
   
   
   
           
  You are responsible for your own decisions and will not sue Loonie Doctor or anyone associated with us.  
   
           
   
   
           
  The tool saves your entries to your web-browser.   
  This has the advantage of making it easier for you to come back to, but be aware in case you are using a public computer.  
           
       
  Province
 
       
  Are you married?  (No will ignore spouse data)
 
  Corporation Owner Age  
       
  Corporation Owner T4 Income Outside of Corp  
  Owner's Spouse T4 Income Outside of Corp  
       
  Target Lifestyle Spending
 
  After-tax cost of living and debt payments. Before RRSP &TFSA contributions.  
  Target Lifestyle Spending  
  Target Lifestyle Spending Yr 1-5  
  Target Lifestyle Spending Yr 6-10  
  Target Lifestyle Spending Yr 11-15  
  Target Lifestyle Spending Yr 16-20  
  Target Lifestyle Spending Yr 21-25  
  Target Lifestyle Spending Yr 26-30  
  Target Lifestyle Spending Yr 31-35  
       
  Owner's Personal Investment Accounts  
  Owner's Registered Retirement Savings Plan (RRSP)  
  Unused RRSP Contribution Room  
  Unused RRSP Income Tax Deduction  
  Proportion of contribution to Spousal vs Personal RRSP in future.
 
  Tax-Free Savings Account (TFSA)  
  Unused TFSA Contribution Room  
  Personal Taxable Account  
  Unrealized Capital Gains  
  Net taxable rental or other non-T4 income  
       
  Spouse's Personal Investment Accounts  
  Spouse's Personal Registered Retirement Savings Plan (RRSP)  
  Unused RRSP Contribution Room  
  Unused RRSP Income Tax Deduction  
  Spousal Registered Retirement Savings Plan (RRSP)  
  Spouse's Tax-Free Savings Account (TFSA)  
  Unused TFSA Contribution Room  
  Personal Taxable Account  
  Unrealized Capital Gains  
  Net taxable rental or other non-T4 income  
       
       
  Corporate Active Business Income
 
  After overhead and before owner & spouse salary.  
  Corporate Income (After Overhead & Pre-Salary)  
  Corp Income (After Overhead & Pre-Salary) Yr 1-5  
  Corp Income (After Overhead & Pre-Salary) Yr 6-10  
  Corp Income (After Overhead & Pre-Salary) Yr 11-15  
  Corp Income (After Overhead & Pre-Salary) Yr 16-20  
  Corp Income (After Overhead & Pre-Salary) Yr 21-25  
  Corp Income (After Overhead & Pre-Salary) Yr 26-30  
  Corp Income (After Overhead & Pre-Salary) Yr 31-35  
       
  Corp qualifies for the Small Business Deduction?
 
       
  Under 5500 Employee-Hours/yr (Including Owners)
 
   
       
  Spousal Employee or Shareholder  
  Is the corp owner able to give spouse dividends before age 65?
 
  Max market rate salary for corp work done by spouse  
       
       
  Corporate Account Starting Balances  
  Corporate Investment Account  
  Unrealized Capital Gains  
  Uninvested Corporate Cash  
  Use Capital Gains Harvesting To Move Money Out
 
  Minimum CDA To Dispense Capital Dividend  
       
  Last Year's Corporate Notional Tax Accounts  
  If you don't know, zero is ok. Can find from accountant or corp tax filing.  
  Capital Dividend Account  
  GRIP  
  eRDOTH  
  nRDTOH  
       
Target Asset Allocation Selection  
         
  Select Input for your current Asset Allocation Strategy    
 
   
         
  Conservative Aggressive    
 
   
         
  Bonds Stocks    
     
  Use a Small Cap Value Factor Tilt?
   
         
  Use Horizon Corp Class ETFs In Corp?
   
  Use Horizon Corp Class ETFs In Personal?
   
         
  Canadian All Cap EQ    
  US Total Market    
  US Small Cap Value EQ    
  Non-North America Developed Markets    
  Non-NA Small Cap Value    
  Emerging Markets    
  Bonds    
         
  Step 3: Enter them below & make sure adds up to 100%    
  Canadian All Cap (FTSE)    
  US Equity    
  NDX 100 (US Large Cap Growth)    
  US Small Cap Value    
  Int'l (Non-North America) Developed Markets    
  Non-NA Small Cap Value    
  Emerging Markets    
  Canadian Bonds    
  Total    
           
  Projected Annual Return Of Different Asset Classes  
  This is just a guess!!! I used the 2023 FP Canada Projection Assumption Guidelines where possible. FPC Guidelines  
  Calculator uses constant (instead of variable) returns. So, a safety margin discount of 0.50%/yr is applied as in the FPC Guidelines.  
           
  Asset Class Interest or Dividends (Before FWT &  Fund MER) Annual Capital Gain Inflation-Adjusted Real Return  
  Canadian Equity  
  US Equity  
  NDX 100 (US Large Cap Growth)  
  US Small Cap Value  
  Non-North America Developed Markets  
  Non-NA Small Cap Value  
  Emerging Markets  
  Bonds  
  Annual Return Weighted by Allocation  
           
  Portfolio Management Structure*
 
  Fees For Funds Used*
 
    Annual Total MER Drag  
  Annual Inflation-Adjusted Return After Fees*  
  *Calculated using common ETFs or a generous estimate for mutual funds. Trading fees or the occassional fee-only advisor considered negligible in the big picture.  
  Active and passive funds are considered to return the market return minus MER. Management expenses are deducted against investment income in taxed accounts.  
           
  Projected Annual CPP "Nominal Return on Investment"    
     
  CPP Inflation-Adjusted Real Return    
           
  Projected Inflation (To Adjust Returns To "Current Dollars")    
     
           
             
 
 
 
 
 
 
  Non-Corp income includes T4 income from outside sources, net rental income, and taxable personal investment income. When there is excess cash flow, it is invested in a TFSA (if contribution room) and then a personal taxable account. The personal taxable account is contributed to by the lower income spouse up to the max of their income minus taxes and RRSP contribution. If still excess cash, then invested by higher income spouse.  
             
                         
  Personal tax, corporate tax (net of refunded RDTOH), and non-recovered foreign withholding taxes (including TFSA/RRSP) are accounted for. The current tax liability is from portfoio liquidation. Tax deferral is beneficial if the future taxes on withdrawal are lower than when deferred and worse if higher than when deferred. Higher rates could result from government policy, dying with a large estate, or being forced to take large amounts out later due to RDTOH in a corp or RRIF withdrawal from an RRSP.  
 
   
 
   
 
   
  Corporate investment income is taxed at a high rate up front. Some of the that (RDTOH) is refundable when dividends are paid out of the corp. However, if not needed and the cost of paying a dividend is higher than the refund, it gets trapped.  
 
   
  If a corporation has income above the small business tax threshold, it is taxed at the higher General Corp tax rate. That generates GRIP to pay out eligible dividends and recoup some of the tax. If not efficient to do that, it accrues.  
                         
                 
  Drawdown Spending /yr      
  Investment Fees /yr      
                 
  Average Tax Rates Applied   Age Reaching Financial Independence  
  Income   Withdrawal Rate Dynamic Salary Max Salary Dividend Only  
  Eligible Dividends   4%/yr After Fees & Tax  
  Ineligible Dividends   3%/yr After Fees & Tax  
  Capital Gains Inclusion   2%/yr After Fees & Tax  
  Return of Capital 0%            
                 
  Accounts discounted by applying the average rate for dividends, income, or capital drawn from the account to achieve the target after-tax cashflow specified in the Drawdown Spending input above. In real-life, you could likely drawdown in a slightly more tax-efficient fashion.  
   
                 
 
             
                 
  If the combined personal-corp tax cost is higher than the savings, then money can accrue in the notional accounts. An inefficiency during accumulation years. Their "buying-power" value also erodes due to inflation over time.   Corporate Notional Account Balances at End of Period  
    Strategy eRDTOH nRDTOH GRIP  
    Dynamic Salary  
    Max RRSP  
    Dividend Only  
    GRIP > eRDTOH can accrue when over the small business deduction threshold.