Smart Wealth Management Strategies for Calgary Business Owners

Smart Wealth Management Strategies for Calgary Business Owners

As a business owner in Calgary, you already understand risk—and reward. But while you may be great at growing your business, managing personal and corporate investments can be a whole different challenge. Between tax rules, cash flow unpredictability, and long-term exit planning, you need a financial strategy built specifically for entrepreneurs like you, with help from a financial advisor in Calgary that specializes in supporting Calgary business owners.

In this article, we’ll walk through key investment strategies Calgary business owners should consider to grow, protect, and transition their wealth efficiently.

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One of the most important rules: don’t keep all your eggs in your business basket.

Many entrepreneurs reinvest everything into their company. While that may fuel growth, it also concentrates risk. If something happens to the business—market downturn, legal issues, partnership fallout—your personal finances could suffer.

Strategy:

• Begin extracting surplus profits into a holding company or personal investment account
• Use corporate-class investment funds or tax-efficient portfolios to grow wealth outside your operating company
• Diversify across asset classes: public markets, private equity, real estate

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2. Use a Holding Company to Grow Investments Tax-Efficiently

A holding company (HoldCo) allows you to retain and invest earnings outside the operating business. In Alberta, corporate investment income is taxed at a lower rate than personal income, offering strong tax deferral opportunities.

Benefits of a HoldCo include:

• Creditor protection
• Simplified business succession and estate planning
• Eligibility for the Lifetime Capital Gains Exemption (LCGE) if structured properly
• Easier access to tax-efficient investments using corporate funds

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3. Balance Salary vs. Dividends Wisely

How you pay yourself affects everything from taxes to RRSP contribution room and CPP eligibility.

• Salary: Creates RRSP room and contributes to CPP
• Dividends: Can be more tax-efficient in certain brackets and easier to manage

The right mix depends on:

• Current income needs
• Retirement savings strategy
• Family income splitting opportunities
• Corporate investment planning

A Personal CFO or financial advisor in Calgary familiar with small business tax rules can help you model both options and make a smart decision.

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4. Consider an Individual Pension Plan (IPP)

If you’re over 40 and earning a high income from your corporation, an IPP can be a powerful retirement savings tool. It’s a defined benefit pension plan that allows for larger, tax-deductible contributions than an RRSP—especially in later years.

IPP Advantages:

• Greater contribution limits vs. RRSPs (especially after age 50)
• Tax-deferred growth within the plan
• Assets are creditor-protected
• Potential corporate tax deductions on setup and administration fees

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5. Plan Your Exit Early

Most business owners don’t plan to work forever—but many also don’t plan far enough ahead for a smooth, tax-efficient exit. Whether you’re aiming to sell to a third party, transition to family, or wind down, start planning 5–10 years in advance.

Exit strategy considerations:

• Maximize use of the LCGE ($1M+ tax-free capital gain on sale of qualifying shares)
• Structure your business to be “sale-ready”
• Align your personal investment and income needs with post-exit lifestyle goals

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6. Build an Investment Portfolio That Complements Your Business Risk

If your business is cyclical or concentrated in a specific industry (e.g., oil & gas, tech), your personal investments should diversify away from that exposure.

A discretionary portfolio manager can build a wealth management strategy with custom investment asset allocation that reduces volatility and aligns with your personal time horizon, cash flow needs, and exit plans.

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Calgary Business Owner? Build a Smarter Wealth Management Strategy

At MRG Wealth Management, we specialize in working with business owners, entrepreneurs, and incorporated professionals. Our Personal CFO model helps you align your corporate and personal finances so you can build, protect, and transition wealth—on your terms.

Book a complimentary investment strategy call and take the first step toward a more integrated financial future.

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