Top 5 Financial Planning Challenges for Physicians in Canada – And How We Help Solve Them
Physicians in Canada enjoy rewarding and often lucrative careers, but with those benefits come unique financial challenges. From delayed earnings due to years of education and training to complex tax and incorporation issues, managing wealth as a physician requires more than just a good income—it demands strategic planning. All of these things in combination can make it difficult to feel confident about your money and your overall financial well-being.
As Financial Professionals who work with physicians regularly, we’ve seen these challenges up close. Here are the top five issues we’ve found that Canadian Physicians face when it comes to financial planning—and how we help our physician clients turn them into opportunities.
1. Delayed Earnings and Catching Up
Physicians often spend a decade or more in school and training, which means most physicians don't begin earning a full income until their late 20s or early 30s - much later than most professionals. This delay can put pressure on physicians to “catch up” quickly—whether it's paying down student loans, saving for retirement, buying a home, or building wealth.
2. Managing Large Student and Professional Debt
Graduating from medical school typically comes with a heavy debt load, sometimes in the six-figure range. Balancing that debt while also potentially starting a family, purchasing property, or setting up a practice can create financial stress and uncertainty.
3. Navigating Incorporation and Tax Complexities
Once physicians become established, many choose to incorporate their practice. While this can be a powerful tax-planning tool, it introduces a new layer of financial decisions—from determining how to pay yourself to managing retained earnings and investment strategies within your corporation. Not having a strong tax-planning strategy can mean tens of thousands, or even hundreds of thousands, of extra dollars that unnecessarily leave the pocket.
4. Planning for Retirement Without a Traditional Pension
Unlike many professions, most physicians don’t benefit from an employer-sponsored pension. That means you are responsible for creating and funding your own retirement plan—one that must be tax-efficient, flexible, and sustainable. Navigating RRSPs, TFSAs, IPPs, and corporate investments on your own, while managing risk and return, can be daunting and overwhelming.
5. Protecting Your Income and Managing Risk
Your ability to earn an income is your most valuable financial asset, and it needs to be protected. However, most physicians don’t have the right mechanisms to protect their ability to earn an income, or have outdated coverage that doesn’t reflect their income level or lifestyle goals. When it comes to Estate Planning, many don’t have a well thought out plan, let alone an implemented plan, on how their hard earned assets are handled after they pass on, and can see a huge chunk of their assets lost to taxes, if not structured properly.
How We Help Physicians Take Control of Their Financial Future
As qualified Financial Professionals, we specialize in helping physicians build clarity and confidence around their finances. Here's what we do to help solve these challenges:
Create a financial plan that reflects your reality – including your late career start, high debt levels, and income potential. We help you prioritize your goals and build a step-by-step strategy to achieve them.
Develop a debt repayment and cash flow plan that balances paying down loans with building wealth and enjoying the lifestyle you've worked so hard for. We ensure that your plan is aligned with your overall objectives and work towards the most efficient way to achieve them.
Work closely with your accountant and legal team to design an effective incorporation strategy, optimize your salary/dividend mix, minimize taxation both now and in the later stages of life, and manage corporate assets and investments wisely.
Build a custom retirement plan that takes full advantage of RRSPs, TFSAs, IPPs, and your corporate savings—ensuring you're financially independent on your terms.
Ensure you have the right risk management strategy in place to protect your income, your family, and your legacy. That includes life, disability, and critical illness insurance, as well as an in-depth Estate Plan that helps you achieve all your goals.
Being a physician doesn't automatically mean being financially secure. But with the right planning, you can take full control of your financial future. If you're looking for a partner who understands the unique financial landscape you face as a doctor in Canada, we’re here to help.
Let’s build a financial strategy that supports your life—today and for decades to come.