5 common financial concerns for medical professionals

Having a specific set of opportunities and challenges

Written by Nitin Manohar
August 25, 2017

When it comes to financial planning, medical professionals have a specific set of opportunities and challenges. Whether you’re a physician, a dentist, a chiropractor or a pharmacist, your tax planning and retirement needs are very different than those of someone in a different industry. This is why corporate structure and personalized wealth management is so critical to your family and your future – the tailored, expert advice of my team can make a significant difference in how much money you keep at the end of each year.

These are some of the most common financial concerns I see from medical professionals in the Ottawa region and across Canada. If you have questions about these or other elements of your financial plan, please contact my team to arrange a confidential, no-charge consultation. We look forward to your call!

How should my business be structured?

Incorporation is only the beginning – the structure of your business should be personalized, tax-efficient and take a long-term view of your financial needs. My team takes a very detailed look at your goals and unique financial situation in order to create a plan that works. Our wealth management consultations can be provided in your home or office.

What insurance do I need?

You will need insurance for a variety of personal and professional reasons, and it’s never one-size-fits-all. In addition to insurance on yourself, your family members and your medical practice, you may want to use insurance as a savings tool or as a way to preemptively set aside money for capital gains that are expected in future. In addition to liability coverage and medical and/or death benefits, we look at preserving your wealth today, protecting and growing your wealth in retirement, and as a tool in your estate plan.

Do I have adequate cash flow for rising operational costs?

Medical professionals are subject to a unique pay system that can involve patient claims to benefits insurance, co-pays and more. Furthermore, claims are sometimes denied, or payment is delayed. You have staff to pay, a unique tax situation, and large overhead costs such as medical equipment and costs associated with your office space. These costs are rising, creating challenges for medical professionals. In fact, a 2013 study by the Medical Group Management Association (MGMA) in the U.S. noted that the cost of running a medical practice had increased twice as fast as the consumer price index over the past 11 years. The same can be assumed here in Canada, as doctors face rising personnel costs and the price of innovative technology. We can help you plan and provide lending options as needed, ensuring that cash flow is never an issue.

Am I financially prepared for retirement?

You’ve earned your retirement – but are you financially prepared to sustain your preferred lifestyle? You don’t just want to survive – you want to thrive, and enjoy the retirement you’ve worked so hard for. Personalized wealth planning takes a close look at your business, savings, investments, insurance, property and other assets in relation to your retirement plans. Working with a team of specialists across Scotia Wealth Management, we also offer estate planning and private banking services, and are able to work with your accountant, lawyer and other professionals to ensure comprehensive care.

When (And How) Should I Sell My Practice?

We have shared some general thoughts on this topic in a previous blog post, but as with all comprehensive financial services, the answer is extremely personalized and varies from case to case. Our team can help determine how and when to sell your business, what to do with the income generated by the sale, and how to minimize the effect of taxes on that income. Ask us how – it’s what we do best.

To arrange a free consultation with Renaldo Saikali, please call (613) 271-6614 or email renaldo.saikali@scotiawealth.com