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Transcript - Estate planning for incorporated physicians

00:00:00,890 --> You spend your working life building up your retirement assets.

00:00:04,070 --> Before you know it, you’ll have to start drawing income and thinking about how to finance the rest of your life.

00:00:11,980 --> When you retire, you’ll likely have investments in many different types of accounts.

00:00:16,480 --> You might have personal investment accounts, a registered retirement savings account, a tax-free savings account, and a corporation that may or may not have a notional account balance.

00:00:27,300 --> You may have an individual pension plan, a life insurance policy or trust.

00:00:30,919 --> When it comes time to start drawing income for your retirement, it’s important to look at the most tax-efficient sources.

00:00:34,989 --> That means when you take out funds, you want to do it in a way that minimizes the tax you have to pay.

00:00:42,500 --> It’s different for everyone. An MD Advisor can help you figure out what’s best for you.

00:00:47,200 --> Where to hold your capital gains investments depends on your circumstances.

00:00:51,480 --> So does when to draw on investments to secure your income or minimize taxes.

00:00:56,540 --> For example, it can be worth it to draw on your RRSP early, in spite of the tax you’ll have to pay.

00:01:02,420 --> But this has other ramifications and should be done carefully.

00:01:05,580 --> When you retire and no longer have practice income, you’ll likely withdraw funds in the form of dividends from your corporation, which will be more tax efficient.

00:01:14,660 --> What if your wealth is growing beyond your retirement needs?

00:01:17,620 --> This can have tax implications.

00:01:19,480 --> At MD, we’re on top of this.

00:01:21,700 --> Integrating retirement, tax, investment, and estate plans for incorporated physicians is normal practice.

00:01:28,590 --> While you will likely need to change the name of your professional corporation when you retire, this doesn’t mean you should collapse your corporation.

00:01:35,219 --> An MD Advisor can work with your accountant to make sure you receive clear, straightforward advice.

00:01:40,200 --> Even if retirement is still many years away, an MD Advisor can set the foundation for that plan today.

00:01:46,470 --> If you have any questions, please contact an MD Advisor.

00:01:49,720 --> Thank you for watching.