CASE STUDIES

Behind one question
there’s usually a whole wealth map.

The six scenarios below start from common questions and show the relationships that need to be looked at together in planning — not one answer that fits everyone.

These cases illustrate planning ideas; all names and numbers are illustrative. They do not represent client results and are not personal investment, tax or legal advice.

CASE 01 / INCOME & TAX

Same $300K income — why does she keep more?

Ms. Wang, 45, Ontario; salary income with unused RRSP room.

Before
Taxable income $300,000; RRSP deduction $0.
After
Illustrative contribution of $30,000; assuming a 45% tax effect, about $13,500 less tax, for a net cash cost of about $16,500.

Check the math: $30,000 × 45% = $13,500. The actual tax effect must be calculated by a tax professional.

CASE 02 / OPERATING COMPANY

The company made $2 million. What should each dollar do next?

Mr. Chen, 52, Alberta; runs a company and has no Holdco yet.

Before
All $2,000,000 stays in the operating company, still exposed to business risk.
After
Illustrative split: $300,000 for working capital, $1,500,000 considered for transfer to a Holdco, $200,000 considered as personal income.

Check the math: $300,000 + $1,500,000 + $200,000 = $2,000,000. Legal and tax feasibility must be confirmed before any money moves.

CASE 03 / HOLDCO STRUCTURE

$2 million in a Holdco — how could it approach $10 million?

Ms. Liu, 50, British Columbia; $2,000,000 of investable funds in a Holdco, planned over 30 years.

Before
Assuming a 0% net return, it is still $2,000,000 after 30 years.
After
Assuming a 5.5% annual net return, about $9,967,903 after 30 years, before personal or estate-related taxes.

Check the math: $2,000,000 × 1.05530 = $9,967,903. Returns are not a forecast or a guarantee.

CASE 04 / COUPLE’S RETIREMENT WITHDRAWALS

A couple with $650K each in RRSPs — what changes if withdrawals start earlier?

Mr. and Ms. Zhao, both 65, Ontario; combined RRSPs of $1,300,000.

Before
At 4% annual growth and no withdrawals for seven years, about $1,710,711 at age 72.
After
Withdrawing a combined $60,000 at the end of each year for seven years, about $1,236,814 at age 72; taxes and TFSA reinvestment not included.

Key point: This only compares withdrawal timing; it doesn’t represent lifetime after-tax wealth.

CASE 05 / PROPERTY TIMELINE

Before selling, complete the property’s timeline.

Ms. Zhou, 43, Alberta; bought a home in 2016, started renting it out in 2022, plans to sell in 2026.

Before
Looking only at the $500,000 purchase price and $850,000 sale price, the apparent gain is $350,000.
After
Adding $40,000 of capital improvements and $30,000 of selling costs, the preliminary gain is $280,000.

Key point: The final taxable amount still needs to consider the principal residence exemption, change-in-use elections and CCA.

CASE 06 / RETIREMENT TAX

An RRSP balance isn’t the same as money you can really spend.

Mr. Li, 60, British Columbia; considering a $30,000 RRSP deposit now, to withdraw at 70.

Before
At 5% annual growth, the balance is about $48,867 at 70.
After
If withdrawals are assumed to face an average effective tax rate of 25%, after-tax cash is about $36,650; the same TFSA withdrawal is usually still $48,867.

Check the math: $48,867 × 25% = $12,217; about $36,650 after tax. This example does not compare the tax treatment at the time of contribution.

Numbers are only the starting point;
structure decides the result.

Every family’s assets, taxes and timeline are different. The real next step is to put your own numbers back on the whole map.

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