Until his mid-forties, apple and cider grower Michel Jodoin did not see the need to contribute to a registered retirement savings plan (RRSP). Now semi-retired, he has just started to disburse part of what he has accumulated in his RRSP over the last 20 years. And he is delighted about it.
“I didn’t see the point in contributing to an RRSP,” he explains. I had a good salary and my business was doing well. I didn’t even ask myself the question. »
It was therefore late in life that the 66-year-old entrepreneur became acquainted with the RRSP. “I did it for the tax benefits,” he admits. The business manager was then advised by an employee of a financial institution. He grew his nest egg by investing mainly in mutual funds.
He had quite good returns, he admits. But dissatisfied with the approach and lack of dynamism, even audacity, of his financial institution, the businessman made the jump to a private financial planner six years ago.
Currently, Michel Jodoin’s portfolio is divided as follows: a tax-free savings account (TFSA) (which represents 11% of his portfolio), an RRSP (29%) and an open account (60%). These percentages correspond to all of its assets divided into separate accounts.
Passing the torch
Michel Jodoin is immensely known in Quebec for his ciders (around twenty kinds) and his spirits. He was the first in Canada to obtain a craft distiller’s license. Its products are everywhere in La Belle Province.
After two and a half years of preparation (a relatively short time tough, he says), the entrepreneur has just passed the torch to his son Philippe, his nephew David Jodoin and his son-in-law Jean-Philippe Lachapelle. However, he remains active (especially in terms of marketing and sales) in the company, of which he remains a shareholder, but a minority.
The fruit of this transaction is placed in security. And Michel Jodoin, a great traveler and extreme sportsman, is already taking advantage of it. Part of his semi-retired monthly income comes from his RRSP, which has 70% stocks and 30% bonds.
Even if he can still do so until the age of 71, the entrepreneur no longer contributes to his RRSP. “For the sale of the business, my financial advisor planned the disbursements to limit the tax payable. I still continue to contribute the maximum to my TFSA,” explains Michel Jodoin.
A question of patience
A pioneer of artisanal distillation, Michel Jodoin likes to draw a parallel between the production of alcohol and preparation for retirement. “It’s all a question of patience,” he explains. We have apple liqueurs that are currently 20 years old. We just forgot about these barrels. They are hidden treasures. I educate my next generation on this. They understand that it pays to be patient. »
His son Philippe contributes to his own RRSP, which his father finds interesting. “When you’re young, you don’t think about that. I am the perfect example, he admits. We have an RRSP program in the company through which we contribute the same amount as the employee. The advice I can give: open an RRSP and contribute according to your means, even if it’s a small amount. And above all, find out more information and be well supported. »
Michel Jodoin is certainly happy to have started his retirement in 2023. He plans to do a lot of sport and travel in the coming years. But certain elements concern him.
“It’s worrying because of the geopolitical situation,” he said. We don’t know what lies ahead, especially in the United States with this year’s presidential election. This raises questions. This is where it is important to have a diversified portfolio. »