McBride Wealth Management

McBride Wealth Management Steve McBride is your financial partner who can help you achieve your life goals.

Paid entirely in dividends? There is a cost that does not appear on any statement.RRSP room is built from earned income....
08/25/2026

Paid entirely in dividends? There is a cost that does not appear on any statement.

RRSP room is built from earned income. Salary generates it. Dividends generate none.

An owner paid in dividends can run a profitable corporation for a decade and arrive at 60 with very little personal RRSP room to show for it. Nothing went wrong. The room was simply never created.

For 2027, the maximum RRSP room is $35,390, which takes roughly $196,700 of 2026 earned income. Whether that level of salary makes sense depends on payroll costs and your overall tax position, which is a conversation for your accountant.

The mix is a decision, not a default.

This month's Wealth Sense article covers both. Read it at https://www.mcbridewealthmanagement.ca/where-your-business-wealth-should-sit

This content is for informational purposes only and does not constitute financial advice. Please consult with a qualified financial advisor before making any financial decisions.

If your corporation invests its retained earnings, there is a number worth knowing: $50,000.Once a corporation's investm...
08/21/2026

If your corporation invests its retained earnings, there is a number worth knowing: $50,000.

Once a corporation's investment income passes that figure in a year, its federal small business limit begins to shrink. It falls by $5 for every $1 above the threshold and reaches zero at $150,000.

The part that catches owners off guard is that the threshold is shared among associated corporations. If you hold shares through a family trust, your corporation may be associated with another one you had not considered.

Worth measuring before year-end rather than discovering it on a tax return.

Read the full article at https://www.mcbridewealthmanagement.ca/where-your-business-wealth-should-sit

This content is for informational purposes only and does not constitute financial advice. Please consult with a qualified financial advisor before making any financial decisions.

Two business owners can hold the same portfolio, earn the same return, and still retire in very different positions.The ...
08/17/2026

Two business owners can hold the same portfolio, earn the same return, and still retire in very different positions.

The difference is not what they own. It is where it is held.

For an incorporated owner, wealth generally sits in one of three places: inside the corporation, in personal registered accounts, or in a registered pension plan. Each is taxed differently, each has a limit on how much it can hold, and the balance between them is a decision you can revisit every year.

Most owners set that balance once and never look at it again.
This month's Wealth Sense article works through all three, and what shifts the right answer over time.

Read the full article here: https://www.mcbridewealthmanagement.ca/where-your-business-wealth-should-sit

This content is for informational purposes only and does not constitute financial advice. Please consult with a qualified financial advisor before making any financial decisions.

Halfway through 2026. Have you reviewed your portfolio on your schedule or the market’s?Five questions worth asking befo...
07/30/2026

Halfway through 2026. Have you reviewed your portfolio on your schedule or the market’s?

Five questions worth asking before summer ends: Has six months of uneven returns pulled your asset mix away from its target? How much of your 2026 RRSP and TFSA room have you used? Has your income or spending changed since January? Did the first half’s volatility test your comfort with risk? Does your plan still fit the second half of the year?

None of these calls for a dramatic change. Each is worth a calm answer.

Book a complimentary 30-minute mid-year portfolio review at calendly.com/mcbridewealthmanagement/30-minute-meeting

This content is for informational purposes only and does not constitute financial advice. Please consult with a qualified financial advisor before making any financial decisions.

How much you have saved for retirement is only part of the equation. The order in which you draw it down can change your...
07/23/2026

How much you have saved for retirement is only part of the equation. The order in which you draw it down can change your tax picture for decades.

Non-registered accounts are drawn first because capital gains and Canadian dividends are taxed more efficiently than registered withdrawals. RRSP and RRIF withdrawals are timed around CPP and OAS to manage your tax bracket. The TFSA comes last because withdrawals create no taxable income. But there is no universal sequence.

The right path depends on your income picture, account balances, government benefit timing, and legacy goals.

Click the link to read the full article. https://brev.is/K64r5

This content is for informational purposes only and does not constitute financial advice. Please consult with a qualified financial advisor before making any financial decisions.

Many Canadians do not realize they could trigger the OAS clawback until it is already happening. The OAS recovery tax ki...
07/23/2026

Many Canadians do not realize they could trigger the OAS clawback until it is already happening.

The OAS recovery tax kicks in when net world income exceeds $93,454 (2025 threshold). At that point, OAS is clawed back at 15 cents for every dollar above the threshold. Income that counts includes CPP, RRIF withdrawals, pension income, investment income, and employment income.

The exposure often builds when retirees enter the RRIF stage with large registered balances and have not planned around the combined effect of RRIF withdrawals, CPP, and OAS income arriving in the same years.

A pre-RRIF drawdown strategy may help.

Click the link to read the full article. https://brev.is/Taxsm

This content is for informational purposes only and does not constitute financial advice. Please consult with a qualified financial advisor before making any financial decisions.

When you take CPP matters more than most people realize. Deferring CPP from 65 to 70 increases your monthly benefit by 4...
07/23/2026

When you take CPP matters more than most people realize.

Deferring CPP from 65 to 70 increases your monthly benefit by 42 per cent. For someone entitled to the maximum 2026 CPP retirement pension, that difference is about $633 per month. Over 25 years, with annual inflation indexation, the gap in lifetime CPP income can exceed $200,000.

But CPP timing is not a standalone decision. It connects directly to when you draw from your RRSP and RRIF, your OAS clawback exposure, and income splitting with a spouse. This month’s article walks through the full analysis.

Learn more here: https://brev.is/YXFgB

This content is for informational purposes only and does not constitute financial advice. Please consult with a qualified financial advisor before making any financial decisions.

Two retirees can earn identical average returns and still end up in very different places. The difference is the order i...
07/21/2026

Two retirees can earn identical average returns and still end up in very different places. The difference is the order in which those returns arrive.

For investors within roughly 10 years of retirement, a sharp down year just before or just after withdrawals begin forces the sale of more units at depressed prices to fund the same income, and that capital never gets the chance to recover.

Exiting the market is no fix; that trades one risk for another. One approach that may help: holding roughly one to three years of planned withdrawals in cash and short-term fixed income, so a downturn never forces a sale.

Read more at https://www.mcbridewealthmanagement.ca/how-disciplined-investors-stay-on-track

This content is for informational purposes only and does not constitute financial advice. Please consult with a qualified financial advisor before making any financial decisions.

The first half of 2026 gave investors every reason to react. Oil spiked past US$100 a barrel, trade tensions weighed on ...
07/17/2026

The first half of 2026 gave investors every reason to react. Oil spiked past US$100 a barrel, trade tensions weighed on Canadian growth, and markets recovered anyway.

The investors who fared best were mostly the ones who did the least reacting. That is not luck, it is discipline, and it is measurable. Morningstar’s 2025 Mind the Gap study found the average dollar invested in U.S. funds earned 1.2 percentage points less per year than the funds themselves returned over the 10 years ending in 2024, a gap driven largely by poorly timed buying and selling.

This month’s Wealth Sense article covers what a disciplined mid-year review includes and why discipline, not prediction, is what protects long-term wealth.

Read the article here: https://www.mcbridewealthmanagement.ca/how-disciplined-investors-stay-on-track

Happy Canada Day! Wishing everyone a safe and relaxing long weekend with the people you love. See you in July!
07/01/2026

Happy Canada Day! Wishing everyone a safe and relaxing long weekend with the people you love. See you in July!

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Toronto, ON
M5J2T3

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