How is Financial Planning for Physicians different from others?
While most people start their career at their early twenties it’s altogether a different scenario for medical professionals. Because of their intense studies and training their career takes off mostly in the late twenties or early thirties. So it is advisable to start their financial planning as soon as the medical professionals start practicing.
Create a Roadmap for your Future Needs with Financial Advisors
Financial planning is a comprehensive process and can help in achieving your dreams – personal as well financial. But engrossed in their busy schedule the doctors completely forget to their financial records. Also, Financial Planning is a completely different area for physicians and that they will never ‘get around to’ it. Taking advice from a Financial Advisor can be a solution to this problem. It is a written statement reflecting your dreams and ambitions created as a result of coordination between you and your Financial Advisor. A financial plan for medical professionals includes
- Their financial statements review
- Insurance Planning
- Employee Benefits Planning and analysis
- Income Tax Planning
- Retirement Planning and Estate Planning
When it comes to money, it is a lifelong evolution which requires specialized financial planning. At all career stages, proper comprehensive financial planning is important but certain solutions for doctors will become more urgent as they move through their careers.
The financial planning for a new graduate doctor or practicing physician required is to help him or her with debt minimization, the decision about health insurance or to manage the future purchase of the practice. Their priority is to start saving for a home purchase for basic RRSP plan, to help him manage income tax installments and flows, RESP for children and to fulfill other family expenses.
The doctor should evaluate the pros and cons of starting research or side business and professional incorporation at this stage of his/her career. He/she should also start learning about investments or need expert financial advice to guide them towards achieving their financial goals.
In the case of retiring professionals, they prefer a plan to hold the financial and tax implications of winding their careers as well as proper estate planning. How and when to receive CPP pension, making financial provision for grandchildren, updating wills, downsizing of real estate (if required) or creation of trust and foundation is one of the major decisions taken at this stage.
Through a proper financial plan, a medical professional will be able to achieve his/her goals strategically. .