Financial planning for incorporated professionals is often two-sided- planning for the practice and personal financial planning. A few things to keep in mind for professionals are:
Professionals are typically in the highest income tax bracket, therefore incorporating their practice can help manage and defer taxes at a lower corporate tax rate.
By incorporating- professionals can have access to dividends from their corporation, shareholder loans, corporately held life insurance and since money can be left inside a corporation- this money can be used in years where there are life changes such as pregnancy, buying a home or retirement.
Professionals should also ensure that they have access to health benefits.
Debt for a professional is not unusual, given the costs of education and equipment, therefore working with an advisor and accountant can help an incorporated professional find a way to balance their cash flow.
Worry less about money and gain control.
Organize your finances.
Prioritize your goals.
Focus on the big picture.
Save money to reach your goals.
For an incorporated professional, personal and practice finances are connected. Therefore both sides should be addressed: Personal and your Practice.
There are 2 main sides your practice’s financial plan should address: Growth and Preservation
Growth:
Cash Management- Managing Cash & Debt
Tax Planning- Finding tax efficiencies
Health Benefits
Preservation:
Investment- either back into the business or outside of the business
Insurance Planning/Risk Management
Retirement Planning
There are 2 main sides your financial plan should address: Accumulation and Protection
Accumulation:
Cash Management – Savings and Debt
Tax Planning
Investments
Protection:
Insurance Planning
Health Insurance
Estate Planning
Establish and define the financial planner-client relationship.
Gather information about current financial situation and goals including lifestyle goals.
Analyze and evaluate current financial status.
Develop and present strategies and solutions to achieve goals.
Implement recommendations.
Monitor and review recommendations. Adjust if necessary.
Talk to us about helping you get your finances in order so you can achieve your lifestyle and financial goals.
Feel confident in knowing you have a plan to get to your goals.
Mutual funds, approved exempt market products and/or exchange traded funds are offered through Investia Financial Services Inc.
Insurance products are offered through PPI Management Inc., a national licensed insurance marketing organization that support independent advisors with their business, and through multiple insurance companies.
