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Transcript - Optimizing your finances as an incorporated physician

00:00:00,160 --> Incorporating your medical practice can help you accelerate your savings.

00:00:03,590 --> It does this by cutting the current taxes you pay by as much as 75% on up to $500,000 of your practice income.

00:00:13,400 --> The key is to leave money in your corporation.

00:00:15,500 --> And because you pay a low tax rate on practice income, you now have more money to invest.

00:00:21,630 --> Unfortunately, corporate tax rates on investment income are not the same as the tax rate on your practice income.

00:00:26,310 --> In fact, your investment income may even reduce your access to low tax rates on your practice income.

00:00:33,390 --> So to make the most of your head start, you have to manage your corporate investments carefully.

00:00:38,000 --> Of course, there are often other components to your portfolio.

00:00:41,140 --> In fact, the recent rule changes for private corporations mean that diversifying your strategies—and not just relying on corporate investments, is even more important.

00:00:49,920 --> So, we know that lower tax rates help speed up retirement savings.

00:00:53,880 --> But knowing how to make other strategies part of your financial plan can boost your corporation’s value.

00:00:58,740 --> It’s about putting the right investments in the right tax-sheltered and non-tax-sheltered accounts so you can maximize your results.

00:01:05,540 --> It’s about understanding how best to distribute your investments among your corporation and things like a registered retirement savings plan, a tax-free savings account, insurance, or an individual pension plan.

00:01:16,440 --> Especially if those other strategies bring their own benefits.

00:01:20,680 --> A spousal RRSP, for example, can be used to increase your assets or help with income splitting.

00:01:26,320 --> How should you invest?

00:01:28,570 --> There are as many different answers as there are physicians, but MD Financial Management can help set you up for your eventual retirement.

00:01:35,300 --> An MD Advisor can help you figure out your overall strategy, and then show you how best to invest in all your individual accounts.

00:01:43,110 --> If you have any questions, please contact an MD Advisor.

00:01:46,420 --> Thank you for watching.