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Working as a FM Doc vs owning a FM practice?

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18 hours ago, brady23 said:

Yup - RRSP is basically a tax deferral - you want to get taxed when you're in a lower tax bracket (i.e. retirement)


although I should point out that with doctors who actually plan this out, you probably won't actually be in a lower marginal tax bracket in retirement (unlike most people). The usual rule for retirement has been something like 60% of your working income is what you will need - the drop is from the fact your house is probably paid off, your kids are probably through school if that is a factor, and you don't need to save for retirement because you are retired etc etc. For a say a surgeon or internal medicine doctor 60% is still over 200K yearly which is the highest marginal tax bracket. Point is your average rate will be lower still in retirement but the effect is a lot less than someone with a lower income in their working years but still a 60% fraction in retirement.  

Also you can of course live very well on a lot less than that ha. Potentially then retiring sooner. I know doctors that have rapidly got to the point where they live  of their savings retire very early or go rather part time. By rapidly I mean in their 40s (and early 40s at that). 


Edited by rmorelan

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In your first year in practice, there will be a lot of appointments with your bank, financial advisors, accountant, mortgage specialist, etc., I assure you. It's good to be well informed how taxes and retirement savings and investment portfolios work, but your team will be guiding you and giving you information along the way.

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