For incorporated business owners, retained earnings sitting in a corporate account are exposed — to passive income rules, to tax drag, and to the inefficiency of capital that isn’t working. A properly structured corporately-owned policy can address this by creating a tax-preferred asset inside the corporation that accumulates value, remains accessible, and transfers efficiently upon death.

This strategy is not appropriate for every situation. It works best when the corporate structure, retained earnings level, and long-term capital goals have been fully evaluated — and when the decision to implement has been tested against ownership, succession, and tax implications simultaneously.

• Assess the corporate structure and retained earnings position
• Evaluate the tax and ownership implications before implementation
• Structure the policy to align with long-term capital goals
• Review how the death benefit interacts with succession and estate objectives

Many business owners rely on traditional bank financing for capital access — accepting the terms, timelines, and approval requirements that come with it. The Infinite Banking Concept is a structured approach that allows business owners to build and access capital on their own terms, reducing reliance on conventional lending while maintaining liquidity.

The underlying principle is straightforward: rather than sending capital to a bank and borrowing it back on the bank’s terms, a properly structured policy allows the policyholder to access capital through policy loans — while the underlying asset continues to grow. Capital works in two places simultaneously.

This strategy requires discipline, a long-term perspective, and a clear understanding of how it interacts with your existing tax and ownership structure.

Mary is an authorized Infinite Banking Practitioner — one of a small number in Canada licensed by the Nelson Nash Institute. This is not a strategy she recommends without fully evaluating whether it fits your specific situation.

One of the most common tradeoffs business owners face is choosing between deploying capital and funding insurance. The Immediate Financing Arrangement is designed to eliminate that tradeoff — allowing capital to remain invested while a bank line of credit funds the insurance premiums.

This is a sophisticated strategy suited to affluent business owners and high-net-worth individuals who need insurance coverage but don’t want to divert working capital to fund it. The IFA also creates a Capital Dividend Account (CDA) credit upon death, enabling a tax-free distribution from the corporation to the estate or heirs.

This strategy requires careful coordination between tax, insurance, and ownership decisions before implementation and should only be considered after a full review of your corporate structure and long-term objectives.

For high-income earners and incorporated professionals, conventional retirement vehicles — RRSPs, TFSAs — often fill quickly. The Insured Retirement Plan addresses a gap that many high earners face: how to continue accumulating wealth on a tax-preferred basis and access it as tax-efficient income in retirement, without triggering the taxable withdrawals that erode conventional savings.

The strategy uses a three-stage approach — accumulation, income, and estate transfer. During retirement, collateralized loans provide income that does not appear as taxable income, preserving eligibility for OAS and other income-tested benefits.

This strategy requires a long time horizon and careful coordination with your existing tax position and retirement goals.

The decision to establish a financial structure for a child at birth is not about the product — it is about the principle of compounding time. The earlier a properly structured policy is established, the longer cash value has to accumulate on a tax-preferred basis, and the more significant the asset becomes over a lifetime.

Unlike education savings vehicles, this strategy has no restrictions on how funds are used. The cash value can support education, a home purchase, a business startup, or any other significant purpose — and continues to grow long after those milestones have passed.

The wealthiest families in history didn’t build lasting legacies by optimizing for today’s tax position. They built structures designed to accumulate, preserve, and transfer capital across generations — with minimal erosion at each transition.

The Rockefeller Strategy applies this same principle to Canadian business owners and affluent families today. This is not a short-term strategy. It requires a long time horizon, a clear multigenerational objective, and careful coordination with your existing tax, ownership, and estate planning.