Jason talks to Braden Warwick, research associate at PWL Capital. Braden has recently composed a study on optimal compensation savings and consumption for business owners of private corporations. Braden has recently composed a study on optimal compensation savings and consumption for business owners of private corporations. Braden's study was a deep dive at a lot of things that started by looking specifically at compensation, structures, and methodologies and had several interesting findings.

Episode Highlights:

• 01:38: Braden shares how he switched his field and how he joined PWL Capital where he was tasked to answer complex problems that the firm is having. 
• 07:16: Braden defines the problem while he does all the research, he explains to people everything which is foundational.
• 08:56: Jason and Braden talk about the different approaches to income as a starting point.
• 14:43: The final paper investigated over 7,000,000 financial planning outcomes, says Braden.
• 19:47: Planning should be around keeping the passive income below 150, because that's when the general corporate kicks in and then you are still in that sweet spot of the transition zone for Ontario and New Brunswick residents.
• 20:49: When the calculation comes up the IP contribution would be less than the equivalent RSP contribution, they can choose to contribute the full RRSP contribution room.
• 21:31: You can basically transfer your RSP assets into the IP and then if any additional corporate funding is required to purchase that service, then that opens up an additional contribution room from the corporation into the IP.
• 40:05: If you are primarily an equity investor, you are generating more capital gains, which is more CDA credit, which is tax free. 

3 Key Points:

1. Braden explains how he is trying to solve the key issues around compensation and retirement savings because dividends versus income are one thing versus notional account-type distributions.
2. Braden shares how the net personal cash is higher in the transition zone than it is with either the small business rate or the general corporate.
3. The longer the CDA sits in there, or the longer those tax refunds sit in those notional accounts, the lower the purchasing power becomes over time.

Tweetable Quotes:

• "For me being relatively new to the world of finance was not a trivial task, because especially with things like IP's, you can't just Google that that information is not readily available." - Braden
• "The problem, as we could starting from the very high level of an individual would come to us with the question of how much can I sustainably spend over the course of my lifetime and then how much net worth will I be left with on average at the end of the day and what's the best plan to get me there and to maximize those." - Braden
• "For those folks that want to maximize consumption, we found that the IP with the maximum salary was the best route." – Braden
• "The lower return than the pension also resulted in a lower return within the core, but also less efficient dynamic income." - Jason

Resources Mentioned:

• Facebook – Jason Pereira's Facebook
• LinkedIn – Jason Pereira's LinkedIn
• Website – Braden Warwick

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