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beyond MD with Dr. Yatin Chadha
beyond MD bridges the gap between medical training and financial literacy.
Led by mid-career Canadian radiologist, Yatin Chadha, beyond MD empowers practicing physicians, medical trainees, and other professionals to build confidence and clarity around money.
Episodes feature interviews with subject experts to help listeners gain knowledge around topics like professional corporations, investing, insurance, pensions, real estate, trusts, and estate planning.
Yatin also frequently interviews his own colleagues to shed light on valuable life and money lessons learned over time.
Tune in to beyond MD (episodes are bi-weekly) to build your financial acumen and live your best life today.
beyond MD with Dr. Yatin Chadha
RCA - Retirement Compensation Arrangement
Yatin Chadha hosts Sophie Cournoyer (FCIA, FSA, MBA, CFA) to discuss the retirement compensation arrangement (RCA).
The RCA is a lesser known retirement savings plan that can be relevant for incorporated professionals with substantial salary (T4 income).
Connect with me on LinkedIn or at beyondmdpodcast@gmail.com
We discuss:
1:08 - My intro to RCA
3:25 - our guest, conflicts on interest
4:40 - what is an RCA?
9:22 - differences between RCA and IPP
13:25 - basic features (governing body, creditor protection, tax deductions, tax deferral, buy back of past service, no impact on RRSP contribution room, considerations for income splitting)
16:53 - basic RCA structure (2 accounts: Investment account & Refundable Tax Account)
18:29 - basic RCA mechanics
20:13 - Sophie talks about eligible investments (very few restrictions)
21:28 - Example: depositing $50,000 into RCA - what happens
23:10 - Examples: what happens to interest income & realized capital loss in the investment account?
24:18 - RCA tax efficiency (and inefficiency)
25:30 - potential benefit of RCA when retiring in low tax jurisdiction
26:18 - RCA and passive income rules
27:55 - RCA - any issues with excess returns?
29:15 - wealth transfers, what happens at death?
30:47 - RCA Cost - set up and maintenance
33:30 - what can go wrong with an RCA
35:15 - my summary (and room for DIY)