Alright, let’s get right to it—if tax rates in a corporation are so much lower than personal taxes, why aren’t we all saving there? It sounds like a no-brainer, right? But the reality is, most people don’t even think about it, let alone take advantage of it. So, let’s break it down and figure out how to make this work for you over the long haul.

The Tax Advantage of a Corporation

Here’s the deal: Corporate tax rates are significantly lower than personal tax rates. We’re talking about a major difference in what you keep versus what you hand over to the taxman. When you leave money inside your corporation, you’re benefiting from those lower tax rates, allowing more of your hard-earned cash to grow. It’s like having a supercharged savings account that Uncle Sam (or the CRA) doesn’t get to raid every year.

Why Aren’t We All Doing This?

So why doesn’t everyone park their savings in their corporation? Simple—most people don’t know how to do it right. They’re worried about the complexities, the rules, and let’s be honest, they’re just used to doing things the old-fashioned way. But here’s the thing: If you’re serious about building wealth, you need to start thinking differently. You need to start using every advantage available to you, and saving within your corporation is a massive one.

Making It Work Over Time

So how do you make this work for you over time? It starts with a plan—a strategic approach to saving, investing, and eventually accessing those funds. Here’s how you do it:

1. Keep It in the Corporation: First, keep as much profit as you can in your corporation. Pay yourself a reasonable salary to cover personal expenses, but leave the rest to grow at those lower tax rates.

2. Invest Wisely: Use the retained earnings in your corporation to invest. Whether it’s in stocks, real estate, or even life insurance (which grows tax-free and provides liquidity), you’re letting your money work harder for you without the personal tax drag.

3. Life Insurance as a Tool: Speaking of life insurance, this is where it gets interesting. By investing in a corporate-owned life insurance policy, you’re not just protecting your business and your family—you’re also creating a tax-free growth engine within your corporation. This is money that grows without the taxman touching it, and you can access it when you need it, tax-free.

4. The Long Game: Over time, the money you’ve saved and invested in your corporation will grow exponentially compared to what you’d save personally after paying higher taxes. And when it’s time to retire or cash out, you have options. You can pay yourself dividends, sell the business, or even use life insurance to pull out money tax-free. The key is that you’re in control, not the taxman.

Final Thoughts:

Saving in your corporation isn’t just a smart move—it’s a game-changer. By taking advantage of lower corporate tax rates, you’re keeping more of your money in your pocket, letting it grow, and setting yourself up for financial success over the long haul. It’s time to stop thinking like everyone else and start using the tools that the wealthy use to stay wealthy. The bottom line? Saving in your corporation is one of the most powerful strategies you can leverage—so why aren’t you doing it yet? Let’s make it work for you.