10 Financial Planning Tips for Doctors & Physicians in Canada

We get it. You spent a decade learning how to save lives, not how to save for retirement. And now you're staring down $160,000 in average medical school debt while everyone expects you to have your financial life together because "doctors make good money."

Generic financial advice doesn't cut it for physicians. You've got unique challenges. Incorporation decisions, irregular residency income, and tax rates that'll make your head spin. The median debt for med school grads hit $90,000, with over a third owing more than $120,000. That's before we even talk about practice loans or mortgages.

At Surcon Mahoney Wealth Management, we've seen it all. We know the sleepless nights aren't just from on call shifts. They're from wondering how you'll juggle debt payments, practice expenses, and still build wealth. Let's fix that.

Tip 1: Start with a Realistic Debt Repayment and Cash Flow Plan

That line of credit (LOC) that got you through med school? It's time to take care of it. Most docs leave school owing serious money. The Association of Faculties of Medicine of Canada reports 16% of grads carry over $200,000 in debt.

Here's our advice: stop treating your LOC like a permanent fixture. Once you're earning steady income, convert that variable-rate monster to a fixed-rate loan. Track every dollar for three months. You'll be shocked where money's leaking out. And hey, if you're willing to work rural, the federal government will forgive up to $60,000 of your student loans over five years. Not too shabby.

Tip 2: Incorporate Your Practice. But Do It Strategically

68% of Ontario physicians have incorporated, and the benefits can exceed $100,000 in present value. Why? Math. Ontario's corporate tax rate is 12.2%. Your personal rate? Could hit 50%+. That's a lot of money left on the table.

But don't rush it. Incorporation makes sense when you're earning more than you spend. Not during residency when you're living on ramen and coffee. Each province has different rules, and those TOSI (tax on split income) regulations mean you can't just split income with your spouse anymore (unless they're actually working in the practice). Get good advice. This isn't a DIY project.

Tip 3: Protect Your Most Important Asset: You

Ready for a wake-up call? 27% of Canadians now have a disability. That's up 4.7% in just five years. For docs, pain-related disabilities hit 63% of affected workers, mental health issues affect 46%. Your hands, your mind, your ability to practice. That's your real wealth.

Through the Ontario Medical Association, you can get up to $25,000 monthly in disability coverage. Sure, it'll cost 1-3% of your salary. Think of it as career insurance. Add critical illness and extra liability coverage while you're at it. The peace of mind is worth every penny.

Tip 4: Diversify Beyond Your Medical Practice

We see this all the time. Doctors who think their practice is their retirement plan. Bad idea. What happens if healthcare regulations change? If you burn out? If technology disrupts your specialty? You need eggs in multiple baskets.

Start simple:

• ETFs for instant diversification
• Some individual stocks in companies you understand
• Maybe REITs or other alternatives once you're accredited
• Bonds or GICs for the boring-but-stable portion

Your practice generates income. Your investments build wealth. Big difference. Let Surcon Mahoney Wealth Management's team help you build a portfolio that works as hard as you do. Without the overnight calls.

Tip 5: Understand the Power of RRSPs and TFSAs. Use Both Strategically

The RRSP limit hasn't budged since 1991. You can contribute $31,560 max while your American colleagues get way higher 401(k) limits. Meanwhile, your TFSA allows $7,000 annually (2025), with $102,000 total room if you've never contributed.

Don't sleep on either. RRSPs give you tax breaks now (or carry them forward to higher-earning years). TFSAs? Perfect for emergency funds, saving for parental leave, or retirement income that won't trigger OAS clawbacks. The TFSA is a medical professional's secret weapon. Use it.

Tip 6: Set Retirement Goals Early. Not Just Financial, But Lifestyle

Retirement isn't just a number in your investment account. What's the point of having millions if you're too burned out to enjoy them? Start thinking now: Do you want to quit cold turkey at 65? Scale back slowly? Take sabbaticals throughout your career?

Maybe you'll teach, mentor, or do medical missions. Maybe you'll finally write that novel. The point is, retirement planning isn't just about money. It's about designing the life you want. 

Surcon Mahoney Wealth Management helps doctors and physicians create plans that match their values, not just their bank statements.

Tip 7: Think Generational. Start Legacy and Estate Planning Sooner Than You Think

"I'm too young for estate planning." Wrong. Own a practice? Have kids? Significant assets? You need a plan yesterday. 

Think beyond the basic will. Who takes over your practice if something happens? How do you minimize taxes when passing on corporate assets? Should you set up trusts for the kids? What about that medical research charity you've always supported? 

The tax implications of transferring business assets are complex. Start planning now, thank yourself later.

Tip 8: Use a Holistic Tax Strategy, Not Just Yearly Filing

If you're only thinking about taxes in April, you're leaving money on the table. With a professional corporation, you've got options most people dream about.

Income splitting (within the rules), Individual Pension Plans, strategic charitable giving, investment location optimization. These aren't just loopholes, they're legitimate strategies. But here's the kicker: passive income in your corp gets taxed differently than active business income. 

Those great 9-12% corporate rates? Only for your first $500K of active income. Investment income? Different story. You need year-round planning, not just year-end scrambling.

Tip 9: Automate Your Wealth. But Don't Set It and Forget It

Automation is your friend. Set up automatic transfers for:

• RRSP and TFSA contributions
• Investment purchases 
• Debt payments
• Regular bills

But here's where people mess up. They automate everything then ignore it for years. Markets change. Life changes. Income changes. Schedule quarterly check-ins. Review performance, rebalance as needed, adjust for life events. Think of it like patient follow-ups. Necessary for financial health.

Surcon Mahoney Wealth Management keeps you accountable with regular reviews. We're not "set it and forget it" advisors. We're your financial fitness coaches.

Tip 10: Build a Trusted Financial Team. You Can't DIY Everything

You wouldn't perform your own surgery, right? So why DIY complex financial planning? You need a solid team: a financial advisor who gets medical professionals, an accountant who understands medical corporations, a lawyer versed in practice structures, and an insurance advisor who won't oversell you.

The magic happens when these pros actually talk to each other. No more repeating your story four times. No more conflicting advice. No more missed opportunities because your accountant didn't know what your advisor was planning. At Surcon Mahoney Wealth Management, we quarterback your financial team, making sure everyone's playing from the same playbook.

Final Thoughts: A Financial Plan as Precise as Your Practice

You run evidence-based medicine, right? Your finances deserve the same approach. From that crushing $160,000 starting debt to building a multi-million dollar retirement, every move matters.

Book a consultation with Surcon Mahoney Wealth Management. We’ve helped many doctors and physicians with their financial planning over decades.