^Blog What Should You Do with the Money Inside Your Holding Corporation After Retirement?

The HoldCo Dilemma: Fast Wind-Down or Strategic Drawdown?

At Three60 Wealth, a Family Office in Calgary focused on business owners who are looking to exit their business, we frequently hear the following question: “What should I do with all the money in my holding company when I sell the business and retire?”

Many are advised to wind down the holding company quickly before passing away to avoid adverse tax consequences. While that might sound reasonable, it’s often not the most tax-efficient route.

More often than not, the better approach is to draw income gradually over time, taking advantage of tax brackets, exemptions, and timing opportunities. This method often provides more flexibility, reduces the total tax bill over your lifetime, and ensures you can sustain your desired lifestyle in retirement.

Tax Optimization Across Multiple Income Sources

Retired business owners typically draw income from a variety of sources: RRSPs, TFSAs, non-registered investments, family trust investments, Canada Pension Plan, Old Age Security, and their holding corporation. Strategic planning is essential to decide when and how much to withdraw from each account.

This is where a fee-based planning approach is crucial. At Three60 Wealth, we don’t sell products, we help families make coordinated, tax-smart decisions. For example, depending on your income needs and marginal tax rate in a given year, it may make more sense to draw from your HoldCo while deferring RRSP withdrawals, or vice versa.

Planning for Real Estate and Family Legacy

In many cases, holding companies also own real estate,
commercial bays, rental properties, or legacy assets that families hope to pass on to children. With the right strategy, such as using a family trust to own the corporation that holds the real estate, tax can be deferred until the next generation disposes of the property.

This structure provides flexibility, income continuity, and greater control over how assets transition. It’s a powerful tool when paired with personalized planning and regular reviews.

Complex wealth requires more than just investment management. It demands integrated, proactive guidance, something a Family Office in Calgary like Three60 Wealth is built to provide.

Authored by: Jason Nagel, at Three60 Wealth