What is an IPP? Benefits of an IPP Things to Consider Who is an IPP Candidate? How to setup an IPP FAQs About IPPs What is Newport Private Wealth's IPP Expertise?

Things to Consider

Funds are locked in: Although regulations surrounding the accessibility of funds held within an IPP have become more flexible recently, assets within an IPP should generally be reviewed as retirement income and therefore not required until retirement. Upon retirement, one lump sum withdrawal may be made, in addition to annual withdrawals.

Annual contributions: Annual contributions are made to the IPP by your corporation. Although Newport Private Wealth can provide flexibility with respect to this obligation, you should consider your ability to meet the ongoing commitment to the pension prior to establishing an IPP.

Conservative pension-quality investment management: Many people have experienced significant fluctuations in the value of their RRSPs in recent years. One of the big advantages of IPPs is that CRA assumes the plan will earn a steady net return of 7.5% per year (or additional contributions may have to be made to correct the underfunding). This creates the need for a ‘higher standard’ of investment management. Investment managers should be chosen carefully based on their ability to deliver a conservative, well-diversified ‘pension-style’ of investing.

Investment restrictions: Eligible investments are generally the same as with RRSPs with a few minor differences.

Expertise: Though simple in concept, IPPs have complex pension, tax, legal and investment rules and regulations. There are probably only a few firms in Canada that truly understand and specialize in IPPs as we do at Newport Private Wealth. We can help you make the rules work to your advantage through understanding and flexibility.

Cost: Most providers charge $2,000 - $4,000 upfront and $1,000-$2,000 annually for the administration of a plan and can have additional charges for other services. Shop around and you'll find you can do better. At Newport Private Wealth, we believe we have the most competitive IPP offerings in Canada.

At Newport Private Wealth, we believe our cost structure is among the most competitive in the marketplace today. We don’t think you’ll find an IPP structure that is more flexible, cost effective and responsibly managed than Newport Private Wealth's IPP offerings.

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