Investing in a business account or pay out then invest in reg accounts?
Apologies if this has been asked before. I was wondering if anyone has any opinion on what’s the best approach to investing with money from a business account?
I am currently pulling out ~120k a year from the biz for living expenses, paying down existing debts and taxes. I have a good 200k+ more coming into the account per year. Currently I have a Wealthsimple business invest account in which I dump the rest and let it accumulate, but settings are very limited and I can only select a balanced portfolio.
I’m just wondering what’s the best approach the extra money here. Is there any benefit in paying myself out then purchase RRSPs? Can’t I already optimize the payments to myself, hence deferring income to years that are more beneficial to myself (eg. A maternity leave year or when I return to a corporate job)? In terms of TFSAs, I’m guessing I should at least max that out?
In what circumstances would it make sense to pay the money out and invest in non-reg accounts?
Anything I’m not seeing here?
Thanks for the insights!
I am currently pulling out ~120k a year from the biz for living expenses, paying down existing debts and taxes. I have a good 200k+ more coming into the account per year. Currently I have a Wealthsimple business invest account in which I dump the rest and let it accumulate, but settings are very limited and I can only select a balanced portfolio.
I’m just wondering what’s the best approach the extra money here. Is there any benefit in paying myself out then purchase RRSPs? Can’t I already optimize the payments to myself, hence deferring income to years that are more beneficial to myself (eg. A maternity leave year or when I return to a corporate job)? In terms of TFSAs, I’m guessing I should at least max that out?
In what circumstances would it make sense to pay the money out and invest in non-reg accounts?
Anything I’m not seeing here?
Thanks for the insights!
