Three years into his practice as a nephrologist, Shane’s accountant pointed out that most of his other physician clients were incorporated and he should do so as well. The explanation was a blur of figures and jargon which this brilliant kidney specialist was embarrassed to admit did not make much sense to him. He asked if we could review the proposal.

As is true of many professional couples, Jennifer and her partner delayed having children and now approaching 40, they have two daughters under the age of three. Her husband is obsessively interested in finances and pontificates endlessly about “risk adjusted rates of returns” and other arcane jargon that mean nothing to her. However, she is determined to provide for her daughter’s education and wants an intuitively simple plan. She understands that an alternative approach involves using her corporation, but at present, hopes that an RESP (Registered Education Savings Plan) will make a strong start that she can manage.

In practice for about ten years, Vanessa set up her corporation three years ago after her debts were under control and she was able to fully contribute to her RSP and TFSA accounts. Her accountant also stressed the importance of catching up on any unused contribution room in both of those funds before taking on the extra legal and accounting costs associated with incorporation. However, the financial concepts are still new to her and she is not certain that she understands the benefits of paying herself with income or dividends. She is also worried about the proposed new capital gains inclusion rate.