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A PHYSICIAN’S FINANCIAL LIFE JOURNEY

EARLY CAREER

You’ve already achieved some big milestones and are well on your way to achieving more. Now is the time to establish good financial habits and to develop some long-term goals.

START MEDICAL SCHOOL

Congratulations! A career in medicine is rewarding, but it can leave you with a large debt if you’re not careful about managing your expenses and your borrowing costs.

  • About 30% of medical students expect to leave school with a debt of more than $100,0001

Join the CMA The Canadian Medical Association will help you through medical school with advocacy, clinical tools and resources—and access to MD Advisors.

GRADUATE FROM MEDICAL SCHOOL AND START RESIDENCY

Good news: you’re earning a salary. Bad news: you likely have student debt.

  • The average resident salary in Canada is $63,0002

Start tackling your debt. Determine how much you own, and how much you owe. This will help you set realistic goals to pay down current debt and avoid accumulating more.

START YOUR PRACTICE

Go it alone or join a group?

  • 17% of Canadian physicians have a solo practice
  • 40% have a group practice with other physicians or other health professionals
  • 41% are based in a hospital setting3

Ready to settle down? Canadians are waiting longer to get married. Between 1972 and 2008, the average age at first marriage increased to

  • 29.1 (from 22.5) for women
  • 31.1 (from 24.9) for men4

Buy your first home. The average price of a house in Canada is $433,649.5

Start a family. Women are waiting longer to have children. Over half of all births in Canada in 2011 were to women aged 30 and older6

EARLY CAREER – FINANCIAL FOCUS:

  • Start investing
  • Create a debt repayment plan
  • Purchase insurance

MID CAREER

Career. Family. Aging parents. This may be the busiest stage of your life. A comprehensive financial plan will help keep your short- and long-term goals on track.

Education costs keep rising. Start preparing now for your kids’ post-secondary education. Save a little every month in an MD registered education savings plan (RESP).

  • Undergrad tuition costs increased by 3.9% per year, on average, between 2010 and 20157

Set up a retirement plan. Now that you’ve paid off all or most of your student debt and are earning a salary, your MD Advisor can help you create an investment plan for retirement. As you progress through your working years, you’ll be able to set aside even more money.

Blended families. Blended families often mean more complicated financial considerations when it comes to estate planning—start by making sure your will is up-to-date.

  • In 2011, stepfamilies made up 12.6% of Canada’s 3.7 million families with children8

Sandwich generation. Managing the needs of both adult children and aging parents can contribute to financial stress.

  • 28% of Canadians provide care to family members or friends with long-term health conditions, disability needs or age-related needs9
  • More than 42% of Canadians in their 20s currently live in their parents’ homes10

Thinking about incorporation? Most physicians who incorporate their practice do so primarily for the tax advantages.

Set up an estate plan. To make sure your legacy is passed on according to your wishes, your plan should include an updated will, provisions for minor children and any necessary changes to beneficiaries.

MID CAREER – FINANCIAL FOCUS:

  • Consider incorporation
  • Initiate retirement planning
  • Begin estate planning

LATE CAREER

You’ve worked hard to get to this point, but you still have some big decisions ahead. How will you transition into retirement? How will you spend your time: travelling, volunteering or continuing to work part-time?

RETIREMENT

Take time to consider what’s most important to you.

Semi-retirement:

  • 38% of Canadian physicians are semi-retired before they retire fully
  • 23% of Canadian physicians remain semi-retired for more than 10 years11

Physicians’ top five retirement goals:12

  1. Be financially secure
  2. Spend more time with family
  3. Prepare for non-financial aspects of retirement
  4. Give back to community
  5. Volunteer/help others

Wind down your practice. Closing your practice requires just as much care as opening it did. MD can walk you through the steps required to dissolve your corporation and ensure a seamless transition into retirement.

LATE CAREER – FINANCIAL FOCUS:

  • Set retirement goals
  • Optimize retirement income
  • Manage estate planning

We’re here for you every step of the way. MD offers personalized and objective financial advice at every stage of a physician’s career—from medical school right through to retirement.

www.mdm.ca

1Source: 2012 National Physician Survey

2Source: Canadian Resident Matching Service (www.carms.ca) – Program Year 3

3Source: 2014 National Physician Survey

4Source: Statistics Canada

5Source: Canadian Real Estate Association, September 2015

6Source: Statistics Canada, 2011

7Source: Statistics Canada

8Source: Statistics Canada Census 2011

9Source: Statistics Canada, 2012

10Source: Statistics Canada, 2012

11Source: Canadian Medical Association Baseline Research, 2010

12Source: Canadian Medical Association Baseline Research, 2010