Holdco

The spreadsheet supports a Personal Holding Company (Holdco) that generates passive income from an investment account. For other types of corporations, refer to the FAQ.

Like any investment account, a Holdco can provide additional funds needed during retirement. Like withdrawals from an RRSP/RRIF account, Holdco withdrawals can also be optimized for tax purposes. For an optimal tax strategy, Holdco draws must be considered together with CPP/QPP and OAS starting ages as well as RRSP/RRIF/LIF withdrawals.

Data Entry

Enter the details for your company in the Holdco section on the Data Entry Worksheet. Details of your investment account and various numbers from your corporate income tax returns are required.

Drawdown Optimization

When a Holdco is present, the Holdco->Draw field is enabled on the Dashboard worksheet. Any amount specified in the Draw field is increased by inflation annually and the Spreadsheet attempts to draw this amount from your Holdco in a tax efficient manner through a combination of capital (non-taxable), eligible and non-eligible dividends.

You can enter the desired draw amount yourself or press the Optimize button to let the optimizer determine the best draw amount to maximize your estate at the end of the projection. The Holdco draw amount is optimized in combination with CPP/QPP and OAS starting ages and RRSP/RRIF/LIF withdrawals.

Holdco withdrawals are shown on the Dashboard's Cashflow chart and the Holdco account balance is shown on the Dashboard's Accounts & Debt chart. For detail about a specific year and a breakdown of the Holdco's distributions from a tax perspective, refer to the Snapshot Worksheet. To see all the Holdco calculations, refer to the Holdco Worksheet (advanced).