Wealth Management for Tech Professionals in Canada

Your stock vests. Your wealth plan should be ready.

Wealth management for tech professionals in Canada is fundamentally different. Salary, bonuses, RSUs, stock options, and ESPP shares create a wealth profile that is concentrated, volatile, and tax-complex in ways generic frameworks do not handle.

The most common problem is concentration risk. The 2022-2024 tech correction showed it clearly: professionals at major firms saw net worth drop 40 to 60% in months because their wealth was tied to a single company.

Wealth management must start with a systematic diversification plan: converting equity compensation into a diversified portfolio as shares vest, while managing tax. See investment planning for tech professionals.

Wealth Building Accounts: Which to Fill First

Account	Best For	Tax Treatment	Priority
RRSP	High-income years - deduction reduces current-year tax	Tax-deferred growth, taxed on withdrawal	High - especially in years with large RSU vesting
TFSA	Tax-free growth and withdrawals	No tax on growth or withdrawal	High - fill every year regardless of income
Corporate investment account	Incorporated contractors with retained earnings	Taxed at corporate rate; CDA for capital dividends	High for incorporated professionals
Non-registered account	Overflow after RRSP/TFSA maximized	Capital gains tax on growth	Medium - use after registered accounts are full
IPP	Incorporated professionals over 40	Tax-deductible contributions, pension income on withdrawal	Consider after age 40

Wealth Management for Incorporated Tech Contractors

Incorporated tech professionals have a wealth-building tool employees do not: the corporate investment account. Surplus invested inside the corporation grows at the corporate tax rate - significantly lower than the personal marginal rate for high earners.

Corporate surplus management decides how much salary or dividend to pay personally, how much to retain, and how to structure the portfolio to manage passive income rules that can affect the Small Business Deduction.

Creditor protection through segregated funds is another consideration - particularly for those with significant corporate assets to shield from business liabilities.

Wealth Management During a Layoff

The Canadian tech sector has seen significant layoffs since 2022. A well-structured wealth plan includes a layoff contingency: 6-12 months of liquid assets, a plan for forfeited unvested equity, and a strategy for health coverage gaps.

A scenario analysis should answer: which accounts do you draw from first? How does a layoff affect RRSP contribution room for the year? Do you accelerate RSU sales before termination?

This connects directly to income protection for tech professionals - both halves of resilience.

Working with SG Wealth

SG Wealth provides wealth management for tech professionals across Canada - integrating equity compensation strategy, corporate structures, investment planning, and insurance into a single coordinated plan.

For a tech professional with complex equity compensation, the value of a good wealth manager typically far exceeds the fee - a single well-timed RRSP contribution at a major vesting event can save $20,000 to $50,000 in taxes.

Book a discovery call to discuss your wealth management goals and get a clear picture of where you stand.