Wealth Management for Medical Professionals

It’s taken a lot of time and money to get to where you are today, which means you may not have been able to start saving for retirement as early as many people in your age bracket. However, you should be able to catch up as your earning potential could allow you to save relatively quickly. Saving for retirement must, of course, be balanced with paying off any student debt you may have. A BMO Private Wealth professional can help you develop a wealth plan that identifies all of your goals and how you can work towards them.

Whether you should incorporate your medical practice depends on a number of factors including how much your business earns, the goals for your business and your personal tax situation. Some of the benefits of incorporating a business are tax savings and deferrals, and limited liability which can help protect your personal assets. It is important to get the proper advice when considering your options. We can help you understand the benefits and complexities of incorporation and the implications to your practice, personal and family life.

RRSPs, TFSAs and Individual Pension Plans (IPPs) each have specific tax benefits. RRSPs help you defer taxes until your retirement; TFSAs allow you to save without having your savings taxed until withdrawn; IPPs provide you with a defined pension benefit upon retirement and allows for much higher contribution levels than an RRSP and these contributions are tax deductible to your corporation. It’s important to note that to set up an IPP, your business needs to be incorporated. Your wealth professional can help you determine which savings vehicles are best for your situation.

There are many factors to consider when you start planning to transition away from or sell your practice including the welfare of your patients. If you own your practice and the building you practice in, you will likely need to start planning well in advance – even years – before you fully retire. You will need to consider the value of your practice along with tax and legal implications. We have a team of experts with extensive experience in helping medical professionals with all financial aspects of running a medical practice – including when you are ready to transition out of it.  

Now that you have built your wealth, you want to safeguard it so that your loved ones are taken care of. Wealth and estate planning for physicians can be complex, especially if you have a holding company or are incorporated. We provide specialized wealth and estate planning and tax-efficient strategies to help you achieve your immediate goals and to protect your wealth – and family – in the long term.