CPP for Self-employed Business Owner - Answering Subscriber Question

CPP for Self-employed Business Owner - Answering Subscriber Question

Many self employed business people struggle with the best use of their business income. Do you retain the cash in your business, pay a dividend plus salary or all salary income?

In this video I'm answering How CPP for Self-employed Business Owner works (Subscriber video request) and specifically can I Opt-out of contributing to the Canada Pension Plan CPP?

In short, you cannot opt-out of paying CPP. The Canada Pension Plan CPP is a mandatory plan for T4 employment income between $3,500 and $64,900, the 2022 Year Maximum Pensionable Earnings (YMPE).

Video Chapters:
00:00 Introduction
01:15 Subscriber Question - Should contribute to CPP or RRSP/TFSA?
02:13 CPP for Self-employed explained
07:10 CPP Cost vs Benefit
11:00 CPP Alternative
13:00 Need for Advice - What is the most effective strategy
13:45 What's your Exit Strategy?
15:10 Business needs vs Personal needs

The Four Percent Rule calculator:
http://www.fourpercentrule.com

If you have any further questions about this video's topic or any financial planning questions in general, I encourage you to schedule your confidential meeting with me.  You can schedule your meeting here: https://meetings.hubspot.com/david-aaron

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