Your 60/40 Investment Portfolio Is Not Actually 60/40. A Canadian Business Owner Case Study

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Nov 14, 2025

A case study about a business owner sitting on $700K in retained earnings and afraid to invest. They dissect why cash sits idle and the hidden cost of ‘safety.’ Strategies covered include structuring a corporate wealth reservoir, using life insurance as a corporate fixed-income substitute, and a practical 50/50 split between policy premium and equities to create a growth flywheel.

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ANECDOTE

Case Study: 'Mark' With $700k Retained Earnings

Mark, a Calgary medical professional, sat on over $700,000 of retained earnings and feared investing it due to liquidity and tax worries.
Kyle and Jon used his case to explore balancing liquidity, taxes, and long-term growth inside a corporation.

ADVICE

Rescue Corporate Dollars Into RRSPs

Take extra corporate dollars as salary to fund RRSPs when corporate tax on retained earnings exceeds your personal average tax rate.
Use RRSP room to move taxed corporate dollars into tax-deferred personal growth instead of leaving them idle in the company.

INSIGHT

Corporate 60/40 Often Means Overly Conservative

A 60/40 portfolio within a corporation often replicates the cash-heavy safety already held in business accounts and drags growth down.
Send long-term corporate investments into true growth assets (equities/real estate) rather than adding more fixed income exposure.

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Ready to take a deep dive and learn how to generate personal tax-free cash flow from your corporation? Enroll in our FREE masterclass here and book a call here

Are you an incorporated professional sitting on hundreds of thousands in your corporate account—but too nervous to invest it?

Many business owners find themselves in this exact bind. You’ve built a thriving practice, cash is piling up, but fear of illiquidity, taxes, or a market downturn keeps that money sitting idle. Meanwhile, inflation erodes its value and passive income taxes take half your gains. This episode dives into the real-life case of “Mark,” a medical professional from Calgary with over $700,000 in retained earnings, and unpacks how he can move from analysis paralysis to strategic growth. We explore why fear-based “safety” can actually be costly, how to structure your retained earnings for flexibility, and how to align your investments with both logic and emotion.

In this episode, you’ll discover:

How to balance liquidity with long-term growth inside your corporation without triggering punitive tax hits.
Why your retained earnings portfolio might be more conservative than you think—and how to fix it.
The strategy top professionals use to turn idle corporate cash into a tax-efficient, growth-producing reservoir.

If you’re ready to stop letting your retained earnings stagnate and start building lasting corporate wealth, press play now and learn how to make your money work as hard as you do.

Discover which phase of wealth creation you are in. Take our quick assessment and you’ll receive a custom wealth-building pathway that matches your phase and learn our CRA compliant tax optimized strategies. Take that assessment here.

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If you listen to podcasts like The Rational Reminder with Ben Felix & Cameron Passmore, The Canadian Investor, The Canadian Real Estate Investor, Build Wealth Canada with Kornel Szrejber, ChooseFI with Jonathan Mendonsa & Brad Barrett, Afford Anything with Paula Pant, The Ramsey Show with Dave Ramsey, BiggerPockets Money, The Money Guy Show with Brian Preston & Bo Hanson, Invest Like the Best with Patrick O’Shaughnessy, Masters in Business with Barry Ritholtz, The Wealthy Barber Podcast with David Chilton, Financial Audit with Caleb Hammer, In the Money with Amber Kanwar, The Loonie Hour with Steve Saretsky, or More Money Podcast with Jessica Moorhouse — we’re confident you’ll enjoy Canadian Wealth Secrets too.

Canadian Wealth Secrets is an informative podcast that digs into the intricacies of building a robust portfolio, maximizing dividend returns, the nuances of real estate investment, and the complexities of business finance, while offering expert advice on wealth management, navigating capital gains tax, and understanding the role of financial institutions in personal finance.