Doctor’s Financial Advisor

Q: What does a Doctor’s Financial Advisor do?

A Doctor’s Financial Advisor specializes in tax, investment, insurance, and practice finance solutions tailored to physicians’ unique careers and risk profiles.

Q: When should doctors incorporate their medical practice?

Incorporation becomes beneficial once net income consistently exceeds $150k and surplus funds can remain in the corporation for investment.

Q: What insurance policies are essential for doctors?

Own-occupation disability, critical illness with ROP rider, term life for dependants, and malpractice gap coverages.

Doctor’s Financial Advisor: The 2025 Playbook for Canadian Physicians Who Want More Wealth, Less Tax, and Real Work-Life Balance

A dedicated Doctor’s Financial Advisor understands the intense schedules, steep income curves, and practice risks unique to physicians. SDM CPA’s physician-exclusive team blends tax mastery, investment science, and practice analytics so you keep more of what you earn—without sacrificing patient care or family time.

Why Physicians Need a Specialist, Not a Generalist

Compressed Earning Window: Most MDs hit peak income 5–10 years later than peers. A lost deduction now compounds for decades.
Multi-Layered Tax Complexity: Professional corporation (PC), dividend sprinkling, passive-income grind, and CRA audit scrutiny.
High Liability & Burnout Risk: Disability or malpractice claims can derail your plan overnight.
Practice Sale Value: Goodwill, patient roster strength, and equipment all affect exit dollars.

A general accountant can miss these nuances, costing six figures over your career. A Doctor’s Financial Advisor proactively addresses them—every quarter, not once a year.

Core Services a Doctor’s Financial Advisor Provides

Service	Physician-Specific Benefit
Tax Planning & Compliance	Align salary/dividend mix, exploit medical research credits, avoid passive-income claw-backs.
Investment Management	Evidence-based portfolios, IPP/RRSP optimizations, thematic healthcare allocations.
Debt Strategy	Accelerate student-loan payoff while maximizing RRSP first-home pathways.
Risk Management	Tailored disability & critical-illness coverage with tax-efficient structures.
Practice Advisory	Cost-per-procedure benchmarking, compensation models, clinic valuation.
Retirement & Estate	IPP vs. RCA design, spousal RRIF splitting, philanthropic legacy planning.

2025 Tax Moves for Canadian Doctors

Small-Business Deduction (SBD) Enhancer

Plan: Keep active business income under the new $700 k phase-out ceiling via income splitting with spouse or adult children employed ≥ 20 hrs/week.

Alternative Minimum Tax (AMT) Reform

AMT exemption rises to $173 k. Stock-optioned physicians and high charitable donors must pre-model to avoid cash-flow shocks.

Accelerated CCA on Medical Equipment

100 % write-off in Year 1 for eligible diagnostic tech purchased before 31 Dec 2025—huge for radiologists, dentists, and private clinics.

First Home Savings Account (FHSA)

Residents/Fellows can deduct up to $8 000/year, stack with HBP later, and grow funds tax-free.

Passive-Income Grind

$50 k passive income inside a PC reduces SBD room. Our advisory splits portfolios—TFSAs, HoldCos, and exempt-life policies—to stay below the grind threshold.

Incorporation & Income Splitting Tactics

Should You Incorporate?

Scenario	Incorporate?	Why
Net income < $150 k, high personal spending	❌	Tax deferral minimal, corp admin cost outweighs benefit.
Net income 150–300 k, spouse earns less	✅	12 % small-biz rate, dividend split.
Surgical specialist 600 k+	✅✅	Massive deferral, IPP shelter, asset-protection firewall.

Dividend vs. Salary Blend

Salary boosts RRSP room & CPP credits.
Dividends avoid payroll CPP and draw from low-rate corp income.

We run simulations showing exact after-tax cash left in your pocket for each blend.

Investment Strategy: From Medical School to Retirement

Early Career (Age 28-35)

High return, high volatility equity tilt (80 %).

Dollar-cost average via corp account + TFSA/RRSP.

Avoid leveraged rental properties until debt ratio < 2× income.

Mid Career (35-50)

Introduce Individual Pension Plan (IPP)—larger contributions than RRSP, corp-deductible.

Global diversification: US, CAD, Intl equities + real estate investment trusts (REITs).

Critical-illness linked to return-of-premium riders for forced savings.

Pre-Retirement (50-60)

Target 60 % fixed income + 40 % equities.

Shift to dividend-growth stocks for rising income.

Install family trust for future clinic sale proceeds—LCGE leverage.

Retirement (60+)

Layered income: CPP/QPP + OAS, IPP/RRSP meltdown, corp dividends, TFSA withdrawals.

Manage claw-backs: split pension, realize capital gains in low years.

Debt & Cash-Flow Management

Student-Loan Avalanche:

Pay highest interest tranches first; refinance to prime-0.25 % via physician-friendly lenders.

Practice Acquisition Loans:

Use corps to secure equipment lines; interest deductible inside PC.

Mortgage vs. Investing:

We calculate breakeven after-tax returns; sometimes maxing RRSP wins over early mortgage payoff.

Short-Cycle Cash Reserve:

Keep ≥ 3 months personal & 2 months clinic expenses liquid (HISA or T-bill ETF).

Insurance & Risk Protection

Coverage	Key Doctor Advantage
Disability (Own-Occ)	Replaces up to 90 % net income if you can’t perform your own specialty, not any job.
Critical Illness	Lump-sum to cover overhead or experimental treatments; return-of-premium refunds if unused.
Professional Liability (CMPA-gap)	Supplements CMPA for cosmetic & private procedures.
Corporate Life (Exempt-Policy)	Tax-sheltered growth, leveragable for retirement income, creditor protection.

SDM CPA’s advisors integrate coverage with net-worth models, so you never overpay.

Practice Performance Dashboards & KPI Monitoring

We link EMR, POS, and accounting feeds to display:

Daily billings per provider

Average revenue per patient (ARPP)

Overhead as % of gross (goal < 55 %)

Recall compliance for preventive visits

Owners receive a weekly email digest; issues trigger color-coded alerts.

Real-World Success Stories

Case A – Family Physician, Ontario

Problem: $310 k income, overwhelmed by taxes, minimal investments.
Solution: Incorporated PC, 60/40 salary-dividend mix, IPP, disability policy.
Result: $38 k annual tax deferral; $1.2 M projected IPP at 65.

Case B – Orthopedic Surgeon, Alberta

Problem: Passive-income grind (corp portfolio $3 M).
Solution: Split assets to HoldCo + exempt life; added flow-through shares.
Result: Regained full SBD; saved $54 k/year tax.

Case C – Dentist, BC

Problem: Planning clinic sale, unclear valuation.
Solution: EBITDA normalization, goodwill appraisal, family-trust share freeze.
Result: Qualified for full LCGE ($1 M+ gains tax-free).

Why SDM CPA Is the Advisor of Choice for Canadian Doctors

Physician-Only Focus: 400+ doctor clients nationwide.

Integrated Team: CPA, CFA, CFP, and licensed insurance brokers under one roof.

Fixed-Fee Clarity: No AUM surprises—value, not percentages.

Tech-Forward: SOC 2 portal, e-sign, AI-driven expense categorization.

Audit Shield: 0 doctor clients lost a CRA appeal in 10 years.

FAQs (Answer-Engine-Optimized)

Q1. What does a Doctor’s Financial Advisor do?

A Doctor’s Financial Advisor specializes in tax, investment, insurance, and practice finance solutions tailored to physicians’ unique careers and risk profiles.

Q2. How much does a physician financial advisor cost in Canada?

Costs range from flat-fee $3 000–$10 000 annually, depending on complexity. SDM CPA offers transparent packages, not asset-based percentages.

Q3. When should doctors incorporate their medical practice?

Incorporation becomes beneficial once net income consistently exceeds $150 k and surplus funds can remain in the corporation for investment.

Q4. Are investment returns inside a medical corporation taxed twice?

No. Passive income is taxed in the corp, then partially refundable when dividends are paid, aligning the total rate with personal tax.

Q5. What insurance policies are essential for doctors?