Working as a FM Doc vs owning a FM practice?

[brady23]

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

 

[rmorelan]

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). 

 

[Mithril]

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.

[LostLamb]

On ‎8‎/‎12‎/‎2018 at 7:33 PM, Mithril said:

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.

How do you find these "good" people to lead you on your way into staff-hood?

I am terrified that I am gonna get  hoodwinked (thank god for fellowships to defer reality...).

My other thought that popped up through this thread was to marry another student to continue to reap tuition credits past R3

LL

[Wachaa]

3 hours ago, LostLamb said:

How do you find these "good" people to lead you on your way into staff-hood?

I am terrified that I am gonna get  hoodwinked (thank god for fellowships to defer reality...).

My other thought that popped up through this thread was to marry another student to continue to reap tuition credits past R3

LL

The banks, MD Financial, your lawyer, and your accountant all want your money.

You pay for their services and some charge more than others. The best way is to educate yourself more on these topics. Or you can throw more money at them to teach you.

[NeuroD]

9 hours ago, LostLamb said:

How do you find these "good" people to lead you on your way into staff-hood?

I am terrified that I am gonna get  hoodwinked (thank god for fellowships to defer reality...).

My other thought that popped up through this thread was to marry another student to continue to reap tuition credits past R3

LL

Pm @rmorlean hahaha.

Only half kidding

[ralk]

11 hours ago, LostLamb said:

How do you find these "good" people to lead you on your way into staff-hood?

I am terrified that I am gonna get  hoodwinked (thank god for fellowships to defer reality...).

My other thought that popped up through this thread was to marry another student to continue to reap tuition credits past R3

LL

To make sure you're getting good financial advice, do some research before and/or after any financial meetings and check what you know against what they say. If it's not lining up, go somewhere else. Financial advisors - whatever their official capacity - will know things you don't, but should always be able to explain their recommendations in a way that makes sense to you. If they can't, they either don't understand the system (or your situation) well enough to give more than the basic information they're comfortable with, or they're selling a product/approach/idea that benefits them or their company more than it benefits you. In that first case, they might still be giving good final recommendations and you might have some wrong ideas, but if they can't work you through the gaps or misunderstandings in your knowledge, they shouldn't be trusted to direct your money.

Don't need to know everything about financial matters - that's why you go through and pay experts in the first place - but need to know enough to ask meaningful questions, and to detect BS answers when they come.