Investment Planning for Tech Professionals in Canada

Your RSUs are not a portfolio. Here is how to build one.

Investment planning for Canadian tech professionals is fundamentally different. When a significant portion of net worth arrives as RSUs, stock options, or ESPP shares - all denominated in a single company's stock - the first challenge is not where to invest, but how to diversify away from concentrated risk.

The most common mistake is holding RSU shares after vesting because of confidence in the company. The math is unforgiving: tax has already been paid at vesting; further upside is a capital gain, but a downside is a loss that may be hard to offset. A disciplined sell-and-diversify plan is sound portfolio construction, not a statement about the company.

SG Wealth helps tech professionals implement a systematic plan coordinated with overall tax planning for tech professionals to minimize the impact of each vesting event.

Asset Allocation for Tech Professionals

Asset Class	Role in Portfolio	Tax Efficiency
Canadian equities	Core holding, dividend tax credit	High - eligible dividends taxed at lower rate
US and international equities	Growth and diversification	Moderate - foreign dividends fully taxable
Fixed income (bonds, GICs)	Stability and income	Low - interest fully taxable at marginal rate
Real estate (REITs, direct)	Inflation hedge, income	Moderate - distributions partially return of capital
Alternative investments	Uncorrelated returns	Varies - often held inside corporate accounts

TFSA and RRSP Optimization for High-Income Tech Professionals

RRSP contributions reduce taxable income at the marginal rate - up to 53.53% in Ontario above $253,414. The 2026 limit is $33,810. TFSA contributions are $7,000 annually with cumulative room since 2009 now exceeding $109,000.

The optimal allocation depends on current marginal rate, expected retirement income, and whether you anticipate being in a higher or lower bracket later. Your RRSP versus TFSA decision should be reviewed annually as income and equity compensation evolve.

For the full framework, see TFSA and RRSP for tech professionals.

Corporate Investing for Incorporated Tech Contractors

After paying salary or dividend, retained earnings can be invested - but the passive income rules mean investment income above $50,000 per year reduces the Small Business Deduction.

This creates planning tension: invest inside the corporation for tax deferral, or extract and invest personally? The answer depends on marginal rate, type of investment income, and long-term plans for the corporation.

Corporate-class funds, tax-efficient ETFs, and corporate-owned life insurance (which shelters growth inside an exempt policy and pays out tax-free through the Capital Dividend Account) are all part of the toolkit.

RSU Diversification: The Core Investment Challenge

Tax-inefficient assets (bonds, GICs, foreign dividend payers) are best held inside registered accounts where the tax drag disappears. Tax-efficient assets (Canadian equities, growth stocks) can sit in non-registered accounts where capital gains are 50% inclusion.

US dividend-paying stocks held inside an RRSP are exempt from US withholding tax under the Canada-US Tax Treaty - making the RRSP the ideal account for them.

For tech professionals who have accumulated wealth through equity compensation, the conversation extends to estate planning - see estate planning for tech professionals.

Working with SG Wealth

SG Wealth works with tech professionals across Canada to build investment plans coordinated with tax strategy, insurance coverage, and long-term goals.

If you are ready to move beyond a basic RRSP and TFSA and build a comprehensive strategy that accounts for your RSUs, corporate structure, and career trajectory, our team is ready.

Book a consultation today to design a portfolio that complements - rather than concentrates - your tech compensation.