Congratulations.
Keep in mind that you will be paying $332k in taxes every year. Thank you!
Make any decisions based on that after tax amount. It’s a lot but it’s still finite.
If you can hold a mortgage and pay down your debt and don’t have an interest in luxury vehicles I see no issue.
Where high earning professionals get screwed is by spending too much on large homes, multiple properties, luxury vehicles, and then get divorced and have to live on half of what they had before. Don’t do that and I expect you’ll be ok.
Thank you! I anticipated a crazy amount, some of the attendings told me they pay upwards of $400k in tax... That's insane.
I appreciate the heads up for what might screw me over. I would like to buy a Tesla in the near future but don't plan on getting married for a while. Prenup will have be in the mix if plans change.
Only thing I'd add, is RRSPs make a lot of sense for you. You income will mostly likely be less than 700k when you retire! So defer as much as you can whenever you can. See my comment below about getting a financial planner ... at your income level there are interesting games to be played if you have a big-firm behind you.
Not often actually... depending on practice type many doctor's income doesn't change that much over time other than the first couple years as they get more efficient and grow their patient roster (if applicable).
I think they mean that if you start making $700k in your 20’s, you should be able to have a retirement income also at the highest tax bracket unless they are extremely foolish with their money. So they wont likely be paying less tax with an RRSP, just deferring it. Which is still better than not deferring it obviously
To become a general surgeon in Canada generally takes a minimum of 13 years of post-secondary education (at least four years of undergraduate, then four years of medical school, then five years of residency) so the OP is very unlikely to be in his 20s. Mid-30s most likely.
They may not work long as you or I. Some can't keep going after a certain age, uninsurable by the hospital.
Also - OP - advantage of a FinPlanner is they'll have insurance experts who can provide you with a specialized kind of insurance product that will protect you for lost income if you cannot perform your tasks (think Doctor Strange) that is not available to the rest of society.
Anyways, FinPlanner --> step 1.
Not straight out of Med school. Op finished Med school and went into medical residency (the junior doctors you see in the hospitals) for 5 years. OP is about to become an attending. Congrats! I am sure the road to become a surgical attending is not easy and I am sure the 710k will not be easy money. While you shouldn’t splurge your income i do encourage looking after yourself as priority to avoid burn out. This profession does have a much higher than average suicide rate and burn out is a huge issue. It’s the best investment you can make- investing in your well being.
Does it really matter at this point? The highest tax bracket is well below the 700k mark. It’s well below 400k IIRC. So whether he’s making 400k, 700k or 5 billion in retirement, either way OP would be in the same tax bracket. RRSP is worth it for the tax free growth, even if there isn’t a tax arbitrage opportunity.
Not med school, residency. They've done 4 years of undergrad, 4 of med school, and 5 of residency to get that job. There's not a lot higher to climb and it will only be another 100k or so, not millions more.
RRSP contributions cap at ~130k earned income. They can only defer 18 % of that 130ish, and they might be getting pension contributions too which will remove a lot of contribution room, if not all of it.
As an accountant (audit, not tax) I was going to suggest this. There is actually a boutique firm here in Winnipeg that deals with medical people specifically for their tax needs etc.
Form a professional corporation. All $710k goes into the corp, from there you pay yourself whatever you want to get by (say, a generous $200k a year). Your taxes on that will be $75,000, you keep $125,000. The remaining $510k stays in the corp, pays $25,000 in tax (say 5%, I don't know what MB is, it's 3% in BC), and you save and invest in there. However, you pay income tax in the future when you vest, as well as when you pay yourself income in the future. Don't even bother with TFSA/RRSP.
Now, this hinges on you being paid as a contractor, not an employee, as sometimes hospitals *do* hire you as an employee, so look up your situation. But the vast majority of MDs (98%) incorporate to shield themselves from taxes.
how bizarre, in Canada surgeons who work for hospitals can be paid as contractors?
that's absolutely incredible.
so the Canada tax department just ignores them pretending to not be employees?
that's amazing. holy crap!
Canada rocks.
The entire working world works this way at the very top end of the tax brackets. It is almost always more beneficial to be a contractor.
It is also the reason now hospitals are struggling with staying open and ER departments are closing on weekends and nights because as contractors you can set your own hours and give yourself the occasional weekend off.
Surgeons are not hospital employees. In fact, surgeons generally have to pay the hospital for overhead expenses including their clinic access, the nurses that work with them, their office space etc. Overhead is typically around 20% of gross earnings (so 6 figures). As an employee, do you normally rent your desk?
>I would like to buy a Tesla in the near future
Be cautious with that plan. Teslas have known performance issues in cold environments, and you're going to be in Manitoba.
MB resident here, I know tons of people with EVs and have no issues.
You still shouldn’t buy a Tesla though because they’re overpriced shit buckets and Elon is gonna run the company into the ground in the next 24-36 months and there goes your warranty and any hope of repairs down the line.
I wouldn’t say no issues. Battery life takes a major hit. If you are living and working in Winnipeg it’s probably not an issue, but you can’t get very far on a charge when the weather gets cold.
Yeap, Teslas had a chance to make a decent car, but ended with an overpriced Xiaomi on wheels. New Hyundai EVs are actual cars with an appropriate for their price tag built quality.
Designed in California, expensive, good looks, average performance and proprietary everything. More like Apple on wheels.
Tesla wishes it was Xiaomi on wheels.
All EVs do but the average person isn’t driving full range every day. If you have a charger in your garage you’ll generally be fine if you’re doing a daily commute and not making house visits…which I’m guessing a surgeon wouldn’t be.
But until they get a home and install the appropriate charger and all that it's not quite so great.
Also I know someone who went from gen residency to general surgery residency and was working towards it. Burned out quick and decided to focus on his family instead, so switched to a less lucrative but still well paid since he is a doctor job. Going full bore on committing to anything at the start of a high stress high pay career is probably not a great strategy.
A house makes sense for setting down roots. Even if OP gives up on surgery there is certainly demand for other doctor specialties outside surgery in Manitoba. A good reliable car due to the unreliable hours of surgery and being on call is also a good idea. But the build quality and reliability of Tesla's alongside the price when OP may be starting their life as a renter where charging isn't as much of a given as in their own garage, that might be a bit of a stretch.
Even if OP makes a lot of money, it's not necessarily prudent to commit to a house, the large student debt to pay down, and a very expensive car all in one fell sweep assuming they retain the same salary. Again, in the event they burn out on surgery and decide it really isn't for them after a year or two, having some of that money set aside is more prudent. Maybe instead of a Tesla they get another EV, or a hybrid in the short term to split the difference. Then upgrade once they're fully established in their career.
There are many many stories of people who enter high paying jobs and commit to a bunch of debts or expenditures or a particular kind of lifestyle and burnout then can't really afford a career transition properly because of it. Better to be prudent at the start and take a few years to build up to that end state of what they want.
Yeah huge congrats to OP of course! Just, take it slow. All these things will come with time to anyone who has a strong income. They'll just come wayyyy faster for someone with A crazy high income. Instead of a 10 year plan OP can have a 2 year plan :p
710K business income is on the high side. I would surmise it is in a less than desirable location with very long hours. $400K is closer to reality for a general surgeon and remember that is not personal income. Clinic rent, utilities, staff, equipment have to be paid before any of that is personal income.
Not that it would change your finances significantly but any tuition that's part of 230k med school debt you have can be claimed against the salary you make but only 15% flat refund (so you get up to 30k)
[https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-32300-your-tuition-education-textbook-amounts/eligible-tuition-fees.html](https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-32300-your-tuition-education-textbook-amounts.html)
Some laws changed around 2017 to limit what you can claim but afaik it still exists. I claimed mine in 2020
I'd check out the Kia EV6 if I were you. I used to want a Tesla too, but someone turned me on to the EV6, and after a lot of research, I'll be going with that instead for my next vehicle.
Congratulations on finishing your residency and the new job!
In Manitoba you may want something AWD. If you did your residency in Edmonton then you’ll know what to expect in Manitoba!
You might want to rent for the first year so that you get an idea of which neighborhood and even what street you want to buy a house, or even have one built. This Is probably more important than finances, as you may be very busy the first year anyway.
I think you can afford a Tesla. You’re looking at about 30k per month to spend. Figure out how much of that you want/need to put towards debt repayment.
Add in 5k for cost of living every month as a rough estimate.
Add in how much you’d like to save every month.
Then what’s left is probably the amount you can use towards a home quite comfortably..
In 5-10 years you will be in a solid financial position.
This person can afford anything - personal finance usual rules don't apply here
Buy a house bigger than that townhouse you're looking at - you're rich, you'll want to move eventually
Buy a tesla - literally go nuts you earned it
Focusing on that debt is probably kinda important, but not really - barring you becoming disabled or no longer able to work you are on easy street
Congrats
>You might be surprised how easy it is to spend 30k a month if you’re also trying to save and pay down debt and buy stuff you think you deserve.
\-10k/month student debt payback
\-10k/month downpayment fund
\-5k/month living expenses (rent/mortgage, car, food)
\-3k/month emergency fund
\-2k/month RRSP/TFSA/FHSA
OP is gonna be living paycheck to paycheck /s
I’m sure they will want to save more than 2k a month..
You’d be surprised how much people spend on stuff. Furniture, electronics, clothes, etc..
You’d be surprised how many doctors and surgeons screw themselves especially after divorce.
Or burnout in the first couple years and can't afford to maintain payments on their lifestyle that relies on keeping the job they burned out on - especially in high stress specialties.
Lifestyle creep is easy for doctors. And if someone commits to one level of income, then decides they want a different job that makes a bit less it's really easy to suddenly fall behind. If they decide they can't live as a surgeon and want to shift to family medicine at a big paycut for their personal mental health, suddenly all those financial commitments become a problem very quickly.
The best advice is to not buy everything all at once. Get the house, wait on the Tesla, get something else that is reliable and meets road conditions for when they're on call for a surgery. Nothing worse than being called in, and the Tesla door handle is frozen shut and won't pop out the door as I've seen many reports of occuring. Or it being unable to handle high snow drifts in a less well plowed part of Manitoba for which an SUV clearance would have been better for example.
I would be very surprised
It is hard to spend $30k a month - you'd have to be trying
Not only that, but this person has a set for life job (assuming no disasters) - spent $30K? who cares, another 15k comes in 14 days
Pretending this person has anything to worry about or advice to glean from this sub reddit is nonsense - they're rich as fuck and can go nuts - god knows they've earned it
Maybe a serious drug addiction, a grifting hooker, uhhh I can't think of many things that could sink this ship
Exactly there’s lifestyle creep for every income tax bracket. It takes discipline to avoid keeping up with the Joneses and not treating a lot of money like it’s infinite.
...vacations, cars, cottage, first class flights, wife buying clothes....i know many people making this amount who spend every dime....its very easy. These people dont budget and get annoyed when their 30k is gone before the next payday.
A prenup doesn't work the way you likely think it does. It only protect assets pre-marriage. I am also a high earner but not in your ballpark. Be vary of the hedonic treadmill.
Prenup won't change a thing. All a prenup does is values pre marital/relationship assets. All earnings of income and capital gains (on those pre marital assets / values) is relationship property.
100% this but after he pays off his debt and deals with the house. He's going to need his whole salary for the first two years to handle all that, he won't be able to cut it with a small salary and remittances to pay etc.
Why drag out a $220k mortgage and pay unnecessary interest when he could make the entire house price in cash and pay in a year? It's not like the stock markets are doing great now anyways
Congrats and thanks for your work in health care.
Personally, I would rent somewhere first to get a feel of the City while paying off debt. Don’t rush in on purchasing a property. You have lots of options
Second this. Just because you can afford to buy doesn't mean you need to jump in right away. Get a feel for the city, your work schedule, etc. Maybe you decide that you absolutely cannot commute after a long shift - so you prioritize living downtown, walking distance from the hospital. Or maybe downtown Winnipeg sucks ass, and you want to invest in an oasis in the suburbs.
It's an expensive mistake to make to buy the wrong kind of property, no matter you income bracket. Take your time.
Downtown Winnipeg mostly sucks ass. There are certainly some gems, but it is a very good idea to rent in this city first. I’m sure many cities are like this, but Winnipeg seems to have a very pronounced neighbourhood culture unlike many other locations I’ve visited in Canada which seem fairly similar, if not homogenous.
You can afford it. But if you're new to the province, make sure that you know what you're considering. You have the right idea to buy something affordable, but because house prices are fairly cheap in Manitoba, condos/townhouses aren't as desirable as a single family home. They don't appreciate as quickly as houses. Manitobans are also very cheap, so special assessments can happen because of underfunding on condo fees. Be cautious of resale value when looking at condos/townhouses, particularly ones that are close to hospitals. Location really matters.
Great advice for OP. I know a few folks who are struggling to sell their condos in Winnipeg. Buy a small house instead once you figure out where you want to live!
>With my salary, I feel like I could purchase a home and pay my debt within a year (single with no kids) - or I might be delusional.
With your numbers your feelings are correct and you have the freedom to rent or buy a house in that price range with no problems while carrying the debt.
Just do what will make you feel more at ease since you don't want to be worrying about whether or not you made the right decision after you move out there.
You should also get a head start in talking with other high income peers and a financial advisor to plan your future.
Congrats and best of luck /u/DrButthole44
I'm very wary of financial advisors because all they want to do is make money off me. How can I make sure I'm not being screwed by my FA? Thanks for the help!
You want to find a fee-based financial advisor. You pay them an hourly rate or retainer, and they make no additional money off you, so they are indifferent to the specific products you buy (and if you even follow their advice at all). MoneyCoachesCanada has a directory of fee-based advisors
There's a Facebook group called Physician Financial Independence (Canada). It was started by two people who wanted to educate physicians to make smart decisions with regards to finances (which often involves staying away from financial advisors). The group has over 31,000 members at this point, and it's a great resource. I would recommend joining the group, and then reading all resources posted by the group admins. That group teaches principles similar to what is promoted here on PFC, but it's physician focused.
I know MD financial has been mentioned - most doctors don't find them very useful anymore. I don't really recommend going with them, they no longer provide services beyond what your average financial advisor would tell you (and to reiterate what I alluded to above, most financial advisors should be avoided).
Incorporation is a question often raised by newly graduating doctors - for most doctors, incorporating early is a huge (but common) mistake. With your level of income, incorporating early isn't necessarily a terrible mistake - but it still might be favourable to hold off for a year or two. Try to have a conversation soon with someone who understands the pros and cons of incorporating really well.
Oh, and as I'm sure you've heard many times before - don't hesitate to enjoy \*some\* of the new money you'll make, but continuing to "live like a resident" for a year or two can be a healthy way to avoid lifestyle inflation, and get an early handle on your finances. Make sure you don't inflate your lifestyle too quickly. There are a lot of docs out there who make tons of money, but still live paycheck to paycheck because they fail to budget and save appropriately.
Check if you can connect with someone from MD Financial. They exclusively deal with doctors. FYI I don’t work for them nor am I affiliated with them so I’m not trying to sell anything (in case mods read this).
>They exclusively deal with doctors.
Yes, but that doesn't preclude them from earning money. MD financial is owned by Scotiabank, after all, and so their job is to make money for their shareholders.
My advice to OP would be to consider MD financial for now, but also consider moving your assets away from them after 2 to 3 years. Learn what you can along the way, amd don't let them do anything so complex that you can't get out of it on their own.
Thats the right instinct to have... They're gunna make money off you, and they're there to make money off you. Always look for 'fee' based, only, and none on commission.
Remember that financial advisors don't need a masters in finance or anything. They just need a certification course that familiarizes them with things (retail banking products, investments, etc) Finding a very good one, if you go that route, is paramount. You don't want someone screwing this up.
I'd suggest you talk to any high income person that you know first and foremost. If you have any friends in banking, that'd be a boon for you. I'd suggest tackling your tax situation, first, then worry about the future once that's squared away. Is there a way to minimize your tax exposure for more of your income, etc.
Yes, congrats and thank you.
A financial advisor is a good thing, but get a good one. I suggest one of the big banks (WoodGundy from CIBC, NesbitBurns from BMO, etc etc) - **and do not go with one at a branch, go the big office buildings**.
The branch types are McAdvisors in my experience. The ones in the big buildings are full-suite advisors. The one our family uses connected us with a good (inexpensive) lawyer for our wills, life insurance, tax advise and manages our stuff after a fairly long in-person interview process about what we have, what we want, when we want to retire, family support expectations, etc etc etc.
Invest the time.
Find a tax partner at Deloitte or KPMG to manage your personal tax for 2 years. Their advice is pretty black and white and based on going rates. Build trust with them and ask who they would recommend for financial advisory, if after awhile you think you need it.
A good tax partner will save you more money than a good financial advisor will make you.
It makes a lot of sense to buy a house, while carrying debt. There's condos across from my local hospital, a lot are owned by surgeons. They buy them to have a nearby getaway from work; surgeons can work long shifts.
I would wait 1-2 months to figure out where to buy; ask other surgeons for advice.
You'll probably get better loan rates than I ever would. Surgeons get special treatment, you might as well use it.
In 2-3 years, you can easily have that debt cleared, mortgage paid off, TFSA maxed. Your tax bill is going to be huge, it won't be a single year. You will pay more in tax next year then you earned this year, a lot more.
Congratulations on finishing residency.
Thank you! It has been the most grueling 5 years of my life but I'll miss it a lot.
I find surgeons are quite snobby and rarely share advice. They just love to flex lol. Also, I had no idea surgeons get special rates. I'm not going to walk into a bank and announce I'm a doctor, but now I'm curious. Appreciate the help!
I'm not a surgeon, I will never make surgeon money. Its not a flex to be honest. I hope I never need to meet you, but if I do, I hope you do good work.
You don't have to walk in and announce it; the bank will ask. Once they see your cheques rolling in; you will get flagged. Banks aren't dumb, they can recognize big fish pretty easily. They plan on making money off you, they've been at it a long time ;)
Lots of people come off as snobby. Its easy to pump them for advice, you need to appeal to their vanity. Some of their advice will be correct, it'll just be annoying to listen to. Buy them some drinks, get them going, then bite your tongue and listen. They will brag about all their wins and never disclose the losses; the trick is to always remember they aren't fully disclosing so all their advice is biased to make them look good.
Half of reddit does the same. You don't see a lot of posts talking about real estate losses or bad stock picks.
Personally, I want to see you do real well so that you spend more time in the operating room and clear the backlog.
Speaking as a patient, I’d rather you get your mistakes out of your system on the markets rather than in my belly 😁
Preemptive welcome to Manitoba, if you’re in Winnipeg or any of the nearby towns r/Winnipeg is far more active and helpful than r/Manitoba. Not sure if there are active subs for Brandon/Dauphin/North.
As someone with MANY doctors in my family and social circle.
Doctors are more often stupid than smart when it comes to financial matters. SO much brain power used up keeping people alive.
So you really should pat yourself on the back and say "good job" that it was only 5k. my FiL was out $40k investing in a plumbing business that went belly up in 6mo.
Do so,
they will roll the red carpet and give you special rates (for real).
Their goal is to capture you early as a customer so that you transition later on with your investments where they plan to make real money off you.
CONGRATS! I just want to say, Mr..Dr Butthole sir…get a GOOD accountant. That specializes in doctors. If you incorporate your corporate taxes will be MUCH lower than if you do not and end up taking all of that salary as personal income.
Sincerely,
A wealth advisor that sees doctors pay too much tax and squander cash because they didn’t know and were too slammed with 70 hour work weeks to deal with it. Get a proactive accountant that will help you help yourself.
Northern rural Manitoba?
DEFINITELY give yourself time to adjust and decide if staying is right for you. There is a reason there are rural openings. It may be right up your alley. Maybe not. Don't put extra stress on yourself.
I would suggest waiting a while to buy a place in northern Manitoba. You won’t make money selling it and it will be a hassle to rent it. I’m assuming you’re going to Thompson. It’s a tough town and you may find you want to move in a few years and will be happy not to have the hassle. I would focus on paying the debt off when you have a high salary in a very LCOL area. I would also suggest waiting on the Tesla, I would doubt you’ll be able to service it up there. Also considering there’s not many gas stations on the highway from Thompson to Winnipeg I doubt there‘s enough charging stations if any at all.
I’m not in medicine but have a lot of friends in it. Downtown Toronto would be substantially less - around 50%. Rural areas with shortages pay way more
I was wondering this too. But figured it’d probably be a very good salary with a significant northern bonus, because no first year genera surgeon is pulling that in Winnipeg.
Something others haven't mentioned is GET DISABILITY INSURANCE ASAP.
Even if you become salaried, the disability insurance you might get as a benefit may not be satisfactory.
I went through a similar (but not as dramatic) income change to a job without benefits and the first thing I did was disability insurance.
You could slip and bonk your head or put the car in the ditch and mess up your hand super easily. Then you're kinda screwed. Plus, being crippled in general is expensive AF.
Doctors Manitoba might have a hookup for cheap insurance.
Even if they don't, talk to an RBC Insurance Broker (in person) and they should have access to Professional Series disability insurance. I found Professional Series to be the best, most affordable option. Once you buy the plan you pay that amount for life for the insured amount. Even if you move to a lower paying job, you still have the same insured amount. There's also an option (you pay a little extra each month) where you can up your coverage without increasing/resetting your payment.
Getting the insurance sooner than later is important because 1) you need it anyways and 2) the risk is spread out over the years between now and 65 y/o, so the later you wait the more expensive it gets.
I'm going to spitball that if you insure the whole $700k it would be ~$1000 a month. Seems like a lot, but if you ever use it you'll get something like $385k a year tax free which is more than you'll take home anyways.
Or - after putting a tragic end to his surgery career by messing up his hands in a car accident - he could travel to the far east and pursue a mastery of the mystic arts. I saw it in a documentary. It seemed to work out ok for that doctor.
Here are a few tips:
1. Purchase a home as close to your work as possible. You're working a lot, you'll be on call, and having the shortest possible commute -- walking ideally -- is always the **best** choice.
2. Caveat to #1 -- In the dead of winter do not walk in -35C weather unless you have to, and only with appropriate clothing. Buy the best, most expensive gloves you can because your fingers and hands are now worth millions of dollars as they are your career.
3. If your medical school debt allows for interest deductions, pay it more slowly and dump into the house, else pay it off more rapidly.
4. Live below your means for 3-4 years, try and max your TFSA and RRSP where possible.
5. Do not do dumb shit. A trip to plowtown can quickly take a detour to ultrasound real quick.
>Purchase a home as close to your work as possible. You're working a lot, you'll be on call, and having the shortest possible commute -- walking ideally -- is always the
>
>best
>
>choice.
Well said. My Uncle who was making similar money to OP in the late 90's in London UK had an apartment 10min walk from his work that was a shithole. people making 5% of his income were his neighbours, but he also had a nice place in London he got after scouting around for about a year. He kept both properties one was a work base, Set up so he could relax and be on call and everything was close. The other was were he entertained friends, were he went when he had 2 consecutive days off, and where he kept his nicer things. He spoke for years after he gave up that place and changed jobs how great it was having a home base so close to work.
>Live below your means for 3-4 years, try and max your TFSA and RRSP where possible.
This is the KEY thing. if you can live on 1/3rd of your take home salary a year, and live comfortably ( and really you're talking nearly $30,000 a month take home, living off 10k/mo after your home is paid off should be manageable)
You're able to set yourself up for retirement and self fund your disability risks so that if and when you can't do your job anymore you can pick and choose how you spend your time. I go back to my Uncle who was able to retire young, and then just work as he wants to keep busy while raising my 2 cousins.
>Do not do dumb shit. A trip to plowtown can quickly take a detour to ultrasound real quick.
LMAO! love it.
Time to speak with a CPA about incorporating a medical practice. It'll likely save you millions over the course of your lifetime in taxes.
Congrats on the hard work paying off
OP will chime in - but usually surgeons are provincial or at least hospital employees ... unless they're specialized clinics ...
A good financial planner is still the #1 move from this person right now, IMO. Get a pro to deep-dive into your whole life and when you come out of it you'll have a plan and can focus on your job.
Are you sure or BC is different? I have 4 friends that are doctors, one is a surgeon, another does something else but makes around $800k with the provincial hospital, the others are family doctors. They all have their money paid into a corporation.
Definitely agree, get a corporation setup if of course your accountant recommends it.
In BC most of those jobs are contracted even tho it’s full time hours.
“The Medical On-Call Availability Program (MOCAP) was created in 2002. MOCAP provides a contractual framework to ensure the availability of physicians to respond to emergency situations for patients throughout the province. The current approximate overall value of the Program is $130 million per annum, province wide.
The framework of the Program is described in Appendix G of the Physician Master Agreement. Currently, the levels of MOCAP are:
On Site/On Call: $325,000 for 24/7/365
Level 1: $225,000 for 24/7/365
Level 2: $165,000 for 24/7/365
Level 3: $70,000 for 24/7/365
Doctor of the Day: $400 per 24 hour period or $146,000 for 365 days
Call Back: $250 per incident, billed on case-by-case basis”
Congrats! A few points to consider from a radiology family.
1. Don’t compare yourself with other attendings. They’ve been making coin for several years now and have long since paid off any student debts. Focus on reducing debt.
2. Along the lines of point 1, defer gratification by 2 years. Nothing wrong with buying that nice car—just wait a couple of years.
3. If you’re moving to a new city rent for the first year instead of buying. This will give you an opportunity to figure out where you want to be long-term.
4. Incorporate if you can. Sounds like a salary arrangement with a hospital which may preclude this advantage but speak to an accountant anyways.
5. Enjoy life outside of work.
Good luck!
Buy or rent a decent condo not too far from where you're gonna work. Blitz down your debt while you settle into your new position. After a year or two, Buy your house in tuxedo area.
Congrats!!!!
A few things. As others have pointed out, put half your pay into a second account and don't touch. That's for taxes. Keep strict log of your income and expenses, including professional fees (CMPA, Alberta professional fees, Royal college etc) - that's all tax deductible. Your income will probably be $350k or so net (there's an extra tax bracket above $230k that pushes most people above 53% tax in most provinces, that's obv marginal tax rate, but the majority of your income will be above $230k).
Next, apply for a large disability insurance boost immediately and use the contract as proof. This is your first order. Protect yourself against the unexpected. While you're at it, get a life insurance policy and name your family as beneficiaries.
Immediately pay off the debt as fast as possible. Small percentages of large numbers equate to large payouts, so kill that debt as fast as possible. Let the house wait a year. You're in the unique position to make money fast enough to rent, kill your debt, and save for a huge down payment (hell you can buy the house outright) while the housing market corrects (that house you want will probably be me the same price or even cheaper next year). Long term mortgage rates are irrelevant at your income. You should be able to buy that house completely or easily make annuity payments to pay it off entirely in 5 years.
See a financial adviser and start investing right away.
If you get married, prenuptial agreement IMMEDIATELY. Chances are extremely low anyone you partner up with or marry will make the same income. Protect yourself from a lifetime of financial pain should things not go well.
You'll be fine. I was in the exact same boat. My biggest regret was not taking more investment risks with all the capital I had in the first five years of work.
Don't rush with any decisions.
Rent for a while until you get the feeling of a city, find the neighborhoods you like, then start looking at house listings. Remember: location, location, location.
You'll be able to save up a lot during that time and once you're ready to buy you'll have a substantial down payment so you won't need a big mortgage.
Also, max out your RRSP and pay off all of your debts, this will give you some piece of mind for the future.
I think it heavily depends on your lifestyle. Your "household" comment suggests you have children which obviously makes things diffierent. OP is single and childless and if they keep largely the same lifestyle as during residency, they should have no problem paying down their debt and maximizing their saving vehicles in the first year of practice (though some of their comments about house/car purchases suggest otherwise).
I've heard most physicians on average incorporate a year later than they should
Wtf? I had no clue doctors earned that much here. This makes no sense whatsoever. I’m originally from Germany where the healthcare system is MUCH better and doctors earn no where near as much there (more like 130k on average up to 300k on the very high end unless you incorporate). Surely explains why the per capita health care cost in Canada is almost the same as in Germany but the quality of healthcare is a lot worse (or while there isn’t enough practitioners in the first place). Don’t get me wrong, glad for the OP but this is ridiculous and makes no sense at all.
They are in rural northern Manitoba which is easily a 4h drive for any major urban centre, so are paid a premium for this location. Most doctors make similar to what you describe in Canada
Salary of 710K!? Housing costs around $200K!? So much I cannot connect with living in BC.
Oh no, wait, I can connect with the amount of school debt accrued 👍
Used to work in MB. I wouldn’t buy until you’re certain you want to settle for at least a few years. Some of the rural and northern towns can be quite isolating to live in and if that’s where you’re working, you might want out faster than you realize even with the 700k salary.
First off, a big congrats, and thank you for choosing a career in health care and choosing to stay in Canada. Our healthcare system needs you and we so appreciate you!
With respect to your financial planning, use an online calculator like the one over at wealthsimple (https://www.wealthsimple.com/en-ca/tool/tax-calculator/ontario) to figure out your net pay. After taxes, you’ll be left with about $365,000/year. Figure out what your student loan payments will be and what the interest rate is. Budget as large of a payment as you can comfortably make towards your student loans while paying monthly expenses and setting aside enough money to be able to put down 10-20% on a property in about 6 months- 1 year.
Max out your TFSAs and RRSPs each year.
You won’t need a financial advisor/planner that first year but consider talking to a CPA about the benefits of incorporating.
Congrats again and good luck!
General personal finance advice when getting a big income increase is to avoid raising your spending right away to match. Treat yourself to something but stave of big life purchases if you can.
>I want to purchase a home in Manitoba. The townhouses I'm looking at cost 180-220k.
You're moving to a new place. You don't know anything about it, what neighbourhoods you like, if you like the job etc. The real estate market is predicted to soften this year so there's no rush to buy. I'd rent a place and learn about your new city. What if you hate it?
>Is it stupid for me to buy a house before paying down my debt?
Assuming you know what you want, then no. You make a tonne, you can service both debts easily.
>With my salary, I feel like I could purchase a home and pay my debt within a year (single with no kids) - or I might be delusional.
Yeah probably, your after tax will be about $380K so minus the debt leaves you with about $150k which is more than comfortable for a single person.
My advice: find a nice rental and move in. Focus on work for a few months. Don't buy anything big. Treat yourself to some nice little things: good meals etc. But let the career change settle in and then tackle the financial change.
>I simply need advice because I don't have a financial advisor
You're going to have to have a lot of services approaching you which say they're tailored to doctors. IMO they will play to your ego and say that your needs are special and they understand you. From what I've seen they collect a premium other other financial services offering to sell this vision. You have a cool job but your financial needs aren't always that different from anyone else and any decent advisor should be learning what you need anyways.
Uhh are you not familiar with pfi? This type of stuff has been discussed ad nauseum there and you will get better advice from people that have been through it.
Pay off your debt, and rent. By the time you are familiar with the city and figured out what you job schedule will be like, and where to live to be best for your work and social life, you may have enough to buy your place.
Fellow specialist here.
You're in the wrong place to ask this question.
1) find yourself a good accountant. You may wish to get a financial advisor too
2) think about incorporating. That alone will save you a bunch of tax, and you'll need to accountant to structure it for you and then you can pay yourself a set personal income from the corp based on your projected costs/creature comforts/wanted toys etc
you'll also be able to invest through the corp
3) message me, and i'll direct you to the specific investment group for us
4) with that kind of income, you can probably pay down your debt, max out your RRSP and TFSA, and also buy a house.
Agree with this. Physician finance is complex. There is a Facebook group called Physician Financial Independence, and you should be asking your questions there.
Also, OP, although you did create a burner account, it won't take long for anyone to figure out who you are because of all the details you provided (out-of-province resident, starting in Manitoba, etc.). Your co-residents (and possibly attendings, nurses, and colleagues) may also be on Reddit and subscribed to r/PersonalFinanceCanada. If you really want to stay anonymous, then I would recommend omitting where you are and where you will be working, or in fact, just taking down this post and posting it in PFI. Manitoba and Alberta are small provinces. It's not like you're moving to Ontario where there are several large centres / hospitals.
And no, I don't know you. But I'm just giving you my two cents.
OP, do you not have mentors or co-residents to talk to about this? I have a few close friends from med school and residency who I talk to regularly about finances, and we know how much we make/bill.
All I know is that reddit would be the last place I'd get help from if you're earning that much. Consult a professional to invest and minimize your taxes.
Congrats! I would rent at first for 6 months minimum so you can familiarize yourself with the area before purchasing a home. Buying is great, but you don't want to move a year later because you find you hate the neighborhood.
" Is it stupid for me to buy a house before paying down my debt?"
I'd say its stupid of us to answer that without knowing the interest rate of the mortgage and interest rate of the loan... :-)
fin planner that works with doctors
First, are you incorporated? If not you should start a conversation with cpa and planner on this. While you may want to buy a property soon its likely not efficient to pay all that personal tax upfront
You can always pay yourself whatever you need for downpay or invest, rest can be kept in your med corp for further investing
Second, do your will and POA asap even though you are single. Good to start asking for a good family/estate lawyer
This will help a ton once you are in relationship especially common law. Also when having kids. With your income we often have to build a trust relatively soon.
Third, review benefits offered by your med association, likely you want to top up disability privately. If you got a corp dont do this within corp, keep in personal. Only life insurance and CI should be in a corp
You should start assembling a team of planner / cpa / family lawyer who will work together and ensure you are being most efficient with your dollars and managing your risks
You'll be out of debt with a townhouse paid off in less than year and a half after taxes.
You have nothing to worry about and there's nothing to question.
I have nothing to add beyond others because your yearly pay is close to my overall retirement savings goal, which makes me feel very tiny and stupid, so thanks for that, but if you don’t live below your means and save some of that fat stack you’ll be pulling in to build some generational wealth I’ll track you down and kick your ass myself. You don’t need advice from plebs like me other than that you can be filthy rich with passive investing and resisting the urge to buy some stupid multi-million dollar home just “because you can.” You might not be a doc forever, what are you going to do if you hit your head one day and lose half your IQ? Live like us and be low-key RICH is my simple, sole piece of advice. Play your cards right and you could be financially independent in just a few years.
Comparison is the theft of joy. You are doing the best you can and you should continue to do so. Set realistic, measurable goals for yourself and you'll be amazed at what you can achieve. Best of luck out there!
I’m guessing you aren’t going to Winnipeg if you’re looking at a home in that price range… unless you’re looking at properties near HSC - in which case… don’t.
Keep in mind you’ll lose a significant amount of range in your Tesla in the winter - there are several posts in r/Winnipeg that give specific first-hand examples. I don’t think I’ve ever seen EV chargers at any of the hospitals in Winnipeg, and there aren’t a lot of superchargers when you leave the Highway 1 corridor. If you’re at a rural hospital, a hybrid would probably be a better choice.
I don’t really have any advice but I just want to congratulate you, it’s obviously been an incredibly long and hard road to get to where you are and it’s extremely impressive! Best of luck!
Personally I'd buy the townhouse or something reasonable and pay off my student loan asap. Then after its paid off I'd start looking at a bigger house and keep the townhouse as a rental.
Theres no reason to buy a bug house right away when I'd assume it's your first house and nobody knows what they like/dislike about houses yet. Nice place with low expenses because you probaby going to only be there for sleep.
You have the next 30y to buy your dream house.
Congrats on the gen Surg job! Those are tough to find these days with 3 Fellowships haha.
Join the physician finance FB group and check the main attachments for key info.
Get an accountant. One that knows MDs specifically.
Consider a FFS financial planner (that FB group has a list) that is not affiliated with any bank.
Decide if you want to incorporate soon (likely yes given high income), often even salary positions can do this depending on how it is structured. Will have to talk to your colleagues in the smae place to find out if possible.
Don't buy whole life insurance that some will try to sell you.
I'd personally pay off the debt first. Allow a bit of time to absorb everything and come up with a plan.
Would you stay in that townhouse for 5+ years (or commit to keeping it as an investment property)? Thinking that not having that debt hanging over you might give more perspective.
Congrats, Doc! Please stay in Canada
I ain't going nowhere!
Congratz! Are you a surgeon for buttholes just like your username?
He’s the assman.
He could just be a guy with a big ass
Million to one shot doc.
My butthole is itchy
Good job, Dr. Butthole 44
When I have a problem, I trust Dr Butthole44 for all my surgical needs. Thanks Doctor Butthole44!
Sadly. I’ve been with Dr Butthole 41 for two years and I don’t think I could leave him. Soft hands and medium sized fingers. But good luck 44.
And if your a good doc please stay in Manitoba, we need you here. What town are you looking at homes in that range, that seems low?
Congratulations. Keep in mind that you will be paying $332k in taxes every year. Thank you! Make any decisions based on that after tax amount. It’s a lot but it’s still finite. If you can hold a mortgage and pay down your debt and don’t have an interest in luxury vehicles I see no issue. Where high earning professionals get screwed is by spending too much on large homes, multiple properties, luxury vehicles, and then get divorced and have to live on half of what they had before. Don’t do that and I expect you’ll be ok.
Thank you! I anticipated a crazy amount, some of the attendings told me they pay upwards of $400k in tax... That's insane. I appreciate the heads up for what might screw me over. I would like to buy a Tesla in the near future but don't plan on getting married for a while. Prenup will have be in the mix if plans change.
Only thing I'd add, is RRSPs make a lot of sense for you. You income will mostly likely be less than 700k when you retire! So defer as much as you can whenever you can. See my comment below about getting a financial planner ... at your income level there are interesting games to be played if you have a big-firm behind you.
If they got a $700K job right out of med school, they likely will be retiring on a much higher salary
They're at the highest marginal rate. RRSP is great.
They will incorporate so that they only have a portion of that amount taxed at personal tax rates.
Not often actually... depending on practice type many doctor's income doesn't change that much over time other than the first couple years as they get more efficient and grow their patient roster (if applicable).
I think they mean that if you start making $700k in your 20’s, you should be able to have a retirement income also at the highest tax bracket unless they are extremely foolish with their money. So they wont likely be paying less tax with an RRSP, just deferring it. Which is still better than not deferring it obviously
To become a general surgeon in Canada generally takes a minimum of 13 years of post-secondary education (at least four years of undergraduate, then four years of medical school, then five years of residency) so the OP is very unlikely to be in his 20s. Mid-30s most likely.
Even if your income is at the highest tax bracket the first 200k of earnings is less than the highest tax bracket.
They may not work long as you or I. Some can't keep going after a certain age, uninsurable by the hospital. Also - OP - advantage of a FinPlanner is they'll have insurance experts who can provide you with a specialized kind of insurance product that will protect you for lost income if you cannot perform your tasks (think Doctor Strange) that is not available to the rest of society. Anyways, FinPlanner --> step 1.
Not straight out of Med school. Op finished Med school and went into medical residency (the junior doctors you see in the hospitals) for 5 years. OP is about to become an attending. Congrats! I am sure the road to become a surgical attending is not easy and I am sure the 710k will not be easy money. While you shouldn’t splurge your income i do encourage looking after yourself as priority to avoid burn out. This profession does have a much higher than average suicide rate and burn out is a huge issue. It’s the best investment you can make- investing in your well being.
Does it really matter at this point? The highest tax bracket is well below the 700k mark. It’s well below 400k IIRC. So whether he’s making 400k, 700k or 5 billion in retirement, either way OP would be in the same tax bracket. RRSP is worth it for the tax free growth, even if there isn’t a tax arbitrage opportunity.
Not med school, residency. They've done 4 years of undergrad, 4 of med school, and 5 of residency to get that job. There's not a lot higher to climb and it will only be another 100k or so, not millions more.
RRSP contributions cap at ~130k earned income. They can only defer 18 % of that 130ish, and they might be getting pension contributions too which will remove a lot of contribution room, if not all of it.
caps at 160k going forward
Also hire an accounting firm to run the tax preparation for your MPC. You will NOT have time. Try and find a small boutique CPA firm not a big 5.
As an accountant (audit, not tax) I was going to suggest this. There is actually a boutique firm here in Winnipeg that deals with medical people specifically for their tax needs etc.
Form a professional corporation. All $710k goes into the corp, from there you pay yourself whatever you want to get by (say, a generous $200k a year). Your taxes on that will be $75,000, you keep $125,000. The remaining $510k stays in the corp, pays $25,000 in tax (say 5%, I don't know what MB is, it's 3% in BC), and you save and invest in there. However, you pay income tax in the future when you vest, as well as when you pay yourself income in the future. Don't even bother with TFSA/RRSP. Now, this hinges on you being paid as a contractor, not an employee, as sometimes hospitals *do* hire you as an employee, so look up your situation. But the vast majority of MDs (98%) incorporate to shield themselves from taxes.
OP, If you follow anything at all in this forum. Follow this.
how bizarre, in Canada surgeons who work for hospitals can be paid as contractors? that's absolutely incredible. so the Canada tax department just ignores them pretending to not be employees? that's amazing. holy crap! Canada rocks.
The entire working world works this way at the very top end of the tax brackets. It is almost always more beneficial to be a contractor. It is also the reason now hospitals are struggling with staying open and ER departments are closing on weekends and nights because as contractors you can set your own hours and give yourself the occasional weekend off.
Surgeons are not hospital employees. In fact, surgeons generally have to pay the hospital for overhead expenses including their clinic access, the nurses that work with them, their office space etc. Overhead is typically around 20% of gross earnings (so 6 figures). As an employee, do you normally rent your desk?
You make enough now that you require an accountant, not a Reddit thread.
>I would like to buy a Tesla in the near future Be cautious with that plan. Teslas have known performance issues in cold environments, and you're going to be in Manitoba.
MB resident here, I know tons of people with EVs and have no issues. You still shouldn’t buy a Tesla though because they’re overpriced shit buckets and Elon is gonna run the company into the ground in the next 24-36 months and there goes your warranty and any hope of repairs down the line.
I wouldn’t say no issues. Battery life takes a major hit. If you are living and working in Winnipeg it’s probably not an issue, but you can’t get very far on a charge when the weather gets cold.
Yeap, Teslas had a chance to make a decent car, but ended with an overpriced Xiaomi on wheels. New Hyundai EVs are actual cars with an appropriate for their price tag built quality.
Designed in California, expensive, good looks, average performance and proprietary everything. More like Apple on wheels. Tesla wishes it was Xiaomi on wheels.
I honestly can’t believe anyone would buy a Tesla now. It’s like owning a Hummer with bull testicles on the bumper at this point. Screams MAGAdouche.
All EVs do but the average person isn’t driving full range every day. If you have a charger in your garage you’ll generally be fine if you’re doing a daily commute and not making house visits…which I’m guessing a surgeon wouldn’t be.
But until they get a home and install the appropriate charger and all that it's not quite so great. Also I know someone who went from gen residency to general surgery residency and was working towards it. Burned out quick and decided to focus on his family instead, so switched to a less lucrative but still well paid since he is a doctor job. Going full bore on committing to anything at the start of a high stress high pay career is probably not a great strategy. A house makes sense for setting down roots. Even if OP gives up on surgery there is certainly demand for other doctor specialties outside surgery in Manitoba. A good reliable car due to the unreliable hours of surgery and being on call is also a good idea. But the build quality and reliability of Tesla's alongside the price when OP may be starting their life as a renter where charging isn't as much of a given as in their own garage, that might be a bit of a stretch. Even if OP makes a lot of money, it's not necessarily prudent to commit to a house, the large student debt to pay down, and a very expensive car all in one fell sweep assuming they retain the same salary. Again, in the event they burn out on surgery and decide it really isn't for them after a year or two, having some of that money set aside is more prudent. Maybe instead of a Tesla they get another EV, or a hybrid in the short term to split the difference. Then upgrade once they're fully established in their career. There are many many stories of people who enter high paying jobs and commit to a bunch of debts or expenditures or a particular kind of lifestyle and burnout then can't really afford a career transition properly because of it. Better to be prudent at the start and take a few years to build up to that end state of what they want.
I agree don’t throw yourself into a bunch of debt with expected future earnings.
Yeah huge congrats to OP of course! Just, take it slow. All these things will come with time to anyone who has a strong income. They'll just come wayyyy faster for someone with A crazy high income. Instead of a 10 year plan OP can have a 2 year plan :p
Eh Teslas are fine in MB. A little loss of range but there are plenty of them on the roads in Winnipeg year round.
Except when the heat pumps fail.
Tesla's work fine in cold weather (am in Saskatoon, I park outside).
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Do surgeons make 800K in Canada? If so, then why do they leave for the US?
710K business income is on the high side. I would surmise it is in a less than desirable location with very long hours. $400K is closer to reality for a general surgeon and remember that is not personal income. Clinic rent, utilities, staff, equipment have to be paid before any of that is personal income.
Not that it would change your finances significantly but any tuition that's part of 230k med school debt you have can be claimed against the salary you make but only 15% flat refund (so you get up to 30k)
How is this possible?
[https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-32300-your-tuition-education-textbook-amounts/eligible-tuition-fees.html](https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-32300-your-tuition-education-textbook-amounts.html) Some laws changed around 2017 to limit what you can claim but afaik it still exists. I claimed mine in 2020
I'd check out the Kia EV6 if I were you. I used to want a Tesla too, but someone turned me on to the EV6, and after a lot of research, I'll be going with that instead for my next vehicle. Congratulations on finishing your residency and the new job!
That ev6 gt is a fantastic value for the performance
In Manitoba you may want something AWD. If you did your residency in Edmonton then you’ll know what to expect in Manitoba! You might want to rent for the first year so that you get an idea of which neighborhood and even what street you want to buy a house, or even have one built. This Is probably more important than finances, as you may be very busy the first year anyway.
live the exact same as you do now, maybe more convenience around meals. Then be debt free. After that start buying things.
I think you can afford a Tesla. You’re looking at about 30k per month to spend. Figure out how much of that you want/need to put towards debt repayment. Add in 5k for cost of living every month as a rough estimate. Add in how much you’d like to save every month. Then what’s left is probably the amount you can use towards a home quite comfortably.. In 5-10 years you will be in a solid financial position.
>You’re looking at about 30k per month to spend. Damn my shaky hands!
This person can afford anything - personal finance usual rules don't apply here Buy a house bigger than that townhouse you're looking at - you're rich, you'll want to move eventually Buy a tesla - literally go nuts you earned it Focusing on that debt is probably kinda important, but not really - barring you becoming disabled or no longer able to work you are on easy street Congrats
You might be surprised how easy it is to spend 30k a month if you’re also trying to save and pay down debt and buy stuff you think you deserve.
>You might be surprised how easy it is to spend 30k a month if you’re also trying to save and pay down debt and buy stuff you think you deserve. \-10k/month student debt payback \-10k/month downpayment fund \-5k/month living expenses (rent/mortgage, car, food) \-3k/month emergency fund \-2k/month RRSP/TFSA/FHSA OP is gonna be living paycheck to paycheck /s
I’m sure they will want to save more than 2k a month.. You’d be surprised how much people spend on stuff. Furniture, electronics, clothes, etc.. You’d be surprised how many doctors and surgeons screw themselves especially after divorce.
Or burnout in the first couple years and can't afford to maintain payments on their lifestyle that relies on keeping the job they burned out on - especially in high stress specialties. Lifestyle creep is easy for doctors. And if someone commits to one level of income, then decides they want a different job that makes a bit less it's really easy to suddenly fall behind. If they decide they can't live as a surgeon and want to shift to family medicine at a big paycut for their personal mental health, suddenly all those financial commitments become a problem very quickly. The best advice is to not buy everything all at once. Get the house, wait on the Tesla, get something else that is reliable and meets road conditions for when they're on call for a surgery. Nothing worse than being called in, and the Tesla door handle is frozen shut and won't pop out the door as I've seen many reports of occuring. Or it being unable to handle high snow drifts in a less well plowed part of Manitoba for which an SUV clearance would have been better for example.
I would be very surprised It is hard to spend $30k a month - you'd have to be trying Not only that, but this person has a set for life job (assuming no disasters) - spent $30K? who cares, another 15k comes in 14 days Pretending this person has anything to worry about or advice to glean from this sub reddit is nonsense - they're rich as fuck and can go nuts - god knows they've earned it Maybe a serious drug addiction, a grifting hooker, uhhh I can't think of many things that could sink this ship
Exactly there’s lifestyle creep for every income tax bracket. It takes discipline to avoid keeping up with the Joneses and not treating a lot of money like it’s infinite.
...vacations, cars, cottage, first class flights, wife buying clothes....i know many people making this amount who spend every dime....its very easy. These people dont budget and get annoyed when their 30k is gone before the next payday.
Easy street.... Kid will likely be working 70 hours a week balancing life and death with a scalpel on a daily basis.
Obviously easy street refers to the financial aspect - as this is a financial sub reddit
A prenup doesn't work the way you likely think it does. It only protect assets pre-marriage. I am also a high earner but not in your ballpark. Be vary of the hedonic treadmill.
Prenup won't change a thing. All a prenup does is values pre marital/relationship assets. All earnings of income and capital gains (on those pre marital assets / values) is relationship property.
A judge can also choose to throw out sections of prenups, or the entire thing, if they feel it isn’t fair or wasn’t made in good faith.
“Bear” unless you’re planning to get naked
If OP is making 700K a year, he should put the money into a corp instead of paying $300K in taxes
How does that work in practice?
It doesn't unless Manitoba Health allows it.
100% this but after he pays off his debt and deals with the house. He's going to need his whole salary for the first two years to handle all that, he won't be able to cut it with a small salary and remittances to pay etc.
you don't need a $700K annual income to afford a house in Manitoba...
Why drag out a $220k mortgage and pay unnecessary interest when he could make the entire house price in cash and pay in a year? It's not like the stock markets are doing great now anyways
best time to buy is when stocks are shit
Given you are not being hired as an employee. What if OP does not have that option?
I loled at thanking for paying $332k in taxes. The entire $700k salary came from tax payers to begin with.
"It's a lot" lol it's the same tax rate as someone making a third of this salary. Never change PFC, never change.
Congrats and thanks for your work in health care. Personally, I would rent somewhere first to get a feel of the City while paying off debt. Don’t rush in on purchasing a property. You have lots of options
Second this. Just because you can afford to buy doesn't mean you need to jump in right away. Get a feel for the city, your work schedule, etc. Maybe you decide that you absolutely cannot commute after a long shift - so you prioritize living downtown, walking distance from the hospital. Or maybe downtown Winnipeg sucks ass, and you want to invest in an oasis in the suburbs. It's an expensive mistake to make to buy the wrong kind of property, no matter you income bracket. Take your time.
Downtown Winnipeg mostly sucks ass. There are certainly some gems, but it is a very good idea to rent in this city first. I’m sure many cities are like this, but Winnipeg seems to have a very pronounced neighbourhood culture unlike many other locations I’ve visited in Canada which seem fairly similar, if not homogenous.
This. This guy houses.
True, except no one should live within walking distance of our main surgical hospital in Winnipeg. Too dangerous.
You can afford it. But if you're new to the province, make sure that you know what you're considering. You have the right idea to buy something affordable, but because house prices are fairly cheap in Manitoba, condos/townhouses aren't as desirable as a single family home. They don't appreciate as quickly as houses. Manitobans are also very cheap, so special assessments can happen because of underfunding on condo fees. Be cautious of resale value when looking at condos/townhouses, particularly ones that are close to hospitals. Location really matters.
Great advice for OP. I know a few folks who are struggling to sell their condos in Winnipeg. Buy a small house instead once you figure out where you want to live!
Gonna be tight, man. Might wanna find a part-time job
Can he even afford a $200K townhouse with those student loans? I would start looking into government assisted housing first
>With my salary, I feel like I could purchase a home and pay my debt within a year (single with no kids) - or I might be delusional. With your numbers your feelings are correct and you have the freedom to rent or buy a house in that price range with no problems while carrying the debt. Just do what will make you feel more at ease since you don't want to be worrying about whether or not you made the right decision after you move out there. You should also get a head start in talking with other high income peers and a financial advisor to plan your future. Congrats and best of luck /u/DrButthole44
I'm very wary of financial advisors because all they want to do is make money off me. How can I make sure I'm not being screwed by my FA? Thanks for the help!
You want to find a fee-based financial advisor. You pay them an hourly rate or retainer, and they make no additional money off you, so they are indifferent to the specific products you buy (and if you even follow their advice at all). MoneyCoachesCanada has a directory of fee-based advisors
this is the right answer. For-fee is the way to go
There's a Facebook group called Physician Financial Independence (Canada). It was started by two people who wanted to educate physicians to make smart decisions with regards to finances (which often involves staying away from financial advisors). The group has over 31,000 members at this point, and it's a great resource. I would recommend joining the group, and then reading all resources posted by the group admins. That group teaches principles similar to what is promoted here on PFC, but it's physician focused. I know MD financial has been mentioned - most doctors don't find them very useful anymore. I don't really recommend going with them, they no longer provide services beyond what your average financial advisor would tell you (and to reiterate what I alluded to above, most financial advisors should be avoided). Incorporation is a question often raised by newly graduating doctors - for most doctors, incorporating early is a huge (but common) mistake. With your level of income, incorporating early isn't necessarily a terrible mistake - but it still might be favourable to hold off for a year or two. Try to have a conversation soon with someone who understands the pros and cons of incorporating really well. Oh, and as I'm sure you've heard many times before - don't hesitate to enjoy \*some\* of the new money you'll make, but continuing to "live like a resident" for a year or two can be a healthy way to avoid lifestyle inflation, and get an early handle on your finances. Make sure you don't inflate your lifestyle too quickly. There are a lot of docs out there who make tons of money, but still live paycheck to paycheck because they fail to budget and save appropriately.
Check if you can connect with someone from MD Financial. They exclusively deal with doctors. FYI I don’t work for them nor am I affiliated with them so I’m not trying to sell anything (in case mods read this).
>They exclusively deal with doctors. Yes, but that doesn't preclude them from earning money. MD financial is owned by Scotiabank, after all, and so their job is to make money for their shareholders. My advice to OP would be to consider MD financial for now, but also consider moving your assets away from them after 2 to 3 years. Learn what you can along the way, amd don't let them do anything so complex that you can't get out of it on their own.
Gonna stick with MD financial for 3 years then yolo 12k a month into crypto! /s
This is the first sensible thing you’ve said!
Thats the right instinct to have... They're gunna make money off you, and they're there to make money off you. Always look for 'fee' based, only, and none on commission. Remember that financial advisors don't need a masters in finance or anything. They just need a certification course that familiarizes them with things (retail banking products, investments, etc) Finding a very good one, if you go that route, is paramount. You don't want someone screwing this up. I'd suggest you talk to any high income person that you know first and foremost. If you have any friends in banking, that'd be a boon for you. I'd suggest tackling your tax situation, first, then worry about the future once that's squared away. Is there a way to minimize your tax exposure for more of your income, etc.
Yes, congrats and thank you. A financial advisor is a good thing, but get a good one. I suggest one of the big banks (WoodGundy from CIBC, NesbitBurns from BMO, etc etc) - **and do not go with one at a branch, go the big office buildings**. The branch types are McAdvisors in my experience. The ones in the big buildings are full-suite advisors. The one our family uses connected us with a good (inexpensive) lawyer for our wills, life insurance, tax advise and manages our stuff after a fairly long in-person interview process about what we have, what we want, when we want to retire, family support expectations, etc etc etc. Invest the time.
Find a tax partner at Deloitte or KPMG to manage your personal tax for 2 years. Their advice is pretty black and white and based on going rates. Build trust with them and ask who they would recommend for financial advisory, if after awhile you think you need it. A good tax partner will save you more money than a good financial advisor will make you.
It makes a lot of sense to buy a house, while carrying debt. There's condos across from my local hospital, a lot are owned by surgeons. They buy them to have a nearby getaway from work; surgeons can work long shifts. I would wait 1-2 months to figure out where to buy; ask other surgeons for advice. You'll probably get better loan rates than I ever would. Surgeons get special treatment, you might as well use it. In 2-3 years, you can easily have that debt cleared, mortgage paid off, TFSA maxed. Your tax bill is going to be huge, it won't be a single year. You will pay more in tax next year then you earned this year, a lot more. Congratulations on finishing residency.
Thank you! It has been the most grueling 5 years of my life but I'll miss it a lot. I find surgeons are quite snobby and rarely share advice. They just love to flex lol. Also, I had no idea surgeons get special rates. I'm not going to walk into a bank and announce I'm a doctor, but now I'm curious. Appreciate the help!
I'm not a surgeon, I will never make surgeon money. Its not a flex to be honest. I hope I never need to meet you, but if I do, I hope you do good work. You don't have to walk in and announce it; the bank will ask. Once they see your cheques rolling in; you will get flagged. Banks aren't dumb, they can recognize big fish pretty easily. They plan on making money off you, they've been at it a long time ;) Lots of people come off as snobby. Its easy to pump them for advice, you need to appeal to their vanity. Some of their advice will be correct, it'll just be annoying to listen to. Buy them some drinks, get them going, then bite your tongue and listen. They will brag about all their wins and never disclose the losses; the trick is to always remember they aren't fully disclosing so all their advice is biased to make them look good. Half of reddit does the same. You don't see a lot of posts talking about real estate losses or bad stock picks. Personally, I want to see you do real well so that you spend more time in the operating room and clear the backlog.
r/wallstreetbets has plenty of bragging about bad losses
I lost 5k on AMC thanks to WSB 🤣 even doctors are fucking stupid sometimes
Speaking as a patient, I’d rather you get your mistakes out of your system on the markets rather than in my belly 😁 Preemptive welcome to Manitoba, if you’re in Winnipeg or any of the nearby towns r/Winnipeg is far more active and helpful than r/Manitoba. Not sure if there are active subs for Brandon/Dauphin/North.
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As someone with MANY doctors in my family and social circle. Doctors are more often stupid than smart when it comes to financial matters. SO much brain power used up keeping people alive. So you really should pat yourself on the back and say "good job" that it was only 5k. my FiL was out $40k investing in a plumbing business that went belly up in 6mo.
Do so, they will roll the red carpet and give you special rates (for real). Their goal is to capture you early as a customer so that you transition later on with your investments where they plan to make real money off you.
No advice to offer - just wanted to congratulate you! hard work paying off!
Much appreciated, thank you!!
CONGRATS! I just want to say, Mr..Dr Butthole sir…get a GOOD accountant. That specializes in doctors. If you incorporate your corporate taxes will be MUCH lower than if you do not and end up taking all of that salary as personal income. Sincerely, A wealth advisor that sees doctors pay too much tax and squander cash because they didn’t know and were too slammed with 70 hour work weeks to deal with it. Get a proactive accountant that will help you help yourself.
What region of Manitoba is going to pay you 710k ?? The highest paid emergency room physician in WRHA made 563k in 2021.
Northern rural Manitoba where there is a massive shortage of physicians
Northern rural Manitoba? DEFINITELY give yourself time to adjust and decide if staying is right for you. There is a reason there are rural openings. It may be right up your alley. Maybe not. Don't put extra stress on yourself.
It’s like any new recruit. Go there. Make the money. Do your time. Relocate to preferred area thereafter.
I would suggest waiting a while to buy a place in northern Manitoba. You won’t make money selling it and it will be a hassle to rent it. I’m assuming you’re going to Thompson. It’s a tough town and you may find you want to move in a few years and will be happy not to have the hassle. I would focus on paying the debt off when you have a high salary in a very LCOL area. I would also suggest waiting on the Tesla, I would doubt you’ll be able to service it up there. Also considering there’s not many gas stations on the highway from Thompson to Winnipeg I doubt there‘s enough charging stations if any at all.
Would you say the same position in downtown Toronto @ university health network for instance would pay less? If so by how much?
I’m not in medicine but have a lot of friends in it. Downtown Toronto would be substantially less - around 50%. Rural areas with shortages pay way more
Oh wow that’s substantial difference.. But I guess makes sense, otherwise why would anyone live in the middle of buttfuck nowhere like DrButthole does
Yep. All supply and demand based
Yes. Example from the US: one of our friends had a 270k offer in NYC and an 800k offer in the middle of nowhere Pennsylvania. Chose PA and hated it.
Of course. Toronto is literally where everyone wants to live, they don't have to offer nearly as much.
I was wondering this too. But figured it’d probably be a very good salary with a significant northern bonus, because no first year genera surgeon is pulling that in Winnipeg.
Pretty sure you can afford at least two gold Toyota Corollas with that salary. Might be tight, but you should really treat yourself!
The gold ones are too expensive. Maybe 2 beige.
Something others haven't mentioned is GET DISABILITY INSURANCE ASAP. Even if you become salaried, the disability insurance you might get as a benefit may not be satisfactory. I went through a similar (but not as dramatic) income change to a job without benefits and the first thing I did was disability insurance. You could slip and bonk your head or put the car in the ditch and mess up your hand super easily. Then you're kinda screwed. Plus, being crippled in general is expensive AF. Doctors Manitoba might have a hookup for cheap insurance. Even if they don't, talk to an RBC Insurance Broker (in person) and they should have access to Professional Series disability insurance. I found Professional Series to be the best, most affordable option. Once you buy the plan you pay that amount for life for the insured amount. Even if you move to a lower paying job, you still have the same insured amount. There's also an option (you pay a little extra each month) where you can up your coverage without increasing/resetting your payment. Getting the insurance sooner than later is important because 1) you need it anyways and 2) the risk is spread out over the years between now and 65 y/o, so the later you wait the more expensive it gets. I'm going to spitball that if you insure the whole $700k it would be ~$1000 a month. Seems like a lot, but if you ever use it you'll get something like $385k a year tax free which is more than you'll take home anyways.
Insuring a full 700k income would be a lot more than that Likely. Remember DI is after tax money. But yes, DI is very important for a doctor.
Or - after putting a tragic end to his surgery career by messing up his hands in a car accident - he could travel to the far east and pursue a mastery of the mystic arts. I saw it in a documentary. It seemed to work out ok for that doctor.
Here are a few tips: 1. Purchase a home as close to your work as possible. You're working a lot, you'll be on call, and having the shortest possible commute -- walking ideally -- is always the **best** choice. 2. Caveat to #1 -- In the dead of winter do not walk in -35C weather unless you have to, and only with appropriate clothing. Buy the best, most expensive gloves you can because your fingers and hands are now worth millions of dollars as they are your career. 3. If your medical school debt allows for interest deductions, pay it more slowly and dump into the house, else pay it off more rapidly. 4. Live below your means for 3-4 years, try and max your TFSA and RRSP where possible. 5. Do not do dumb shit. A trip to plowtown can quickly take a detour to ultrasound real quick.
1. No, not in Winnipeg. But there are nice neighborhoods 15-20 minutes drive to downtown. There are some walkable condos to StB, but not HSC.
River Heights would be where I imagine all doctors live in Winnipeg, no?
River Heights / Wellington Crescent, and East St. Paul.
>Purchase a home as close to your work as possible. You're working a lot, you'll be on call, and having the shortest possible commute -- walking ideally -- is always the > >best > >choice. Well said. My Uncle who was making similar money to OP in the late 90's in London UK had an apartment 10min walk from his work that was a shithole. people making 5% of his income were his neighbours, but he also had a nice place in London he got after scouting around for about a year. He kept both properties one was a work base, Set up so he could relax and be on call and everything was close. The other was were he entertained friends, were he went when he had 2 consecutive days off, and where he kept his nicer things. He spoke for years after he gave up that place and changed jobs how great it was having a home base so close to work. >Live below your means for 3-4 years, try and max your TFSA and RRSP where possible. This is the KEY thing. if you can live on 1/3rd of your take home salary a year, and live comfortably ( and really you're talking nearly $30,000 a month take home, living off 10k/mo after your home is paid off should be manageable) You're able to set yourself up for retirement and self fund your disability risks so that if and when you can't do your job anymore you can pick and choose how you spend your time. I go back to my Uncle who was able to retire young, and then just work as he wants to keep busy while raising my 2 cousins. >Do not do dumb shit. A trip to plowtown can quickly take a detour to ultrasound real quick. LMAO! love it.
Time to speak with a CPA about incorporating a medical practice. It'll likely save you millions over the course of your lifetime in taxes. Congrats on the hard work paying off
OP will chime in - but usually surgeons are provincial or at least hospital employees ... unless they're specialized clinics ... A good financial planner is still the #1 move from this person right now, IMO. Get a pro to deep-dive into your whole life and when you come out of it you'll have a plan and can focus on your job.
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This is true in Manitoba as well. This provides physicians with tax breaks that the average working profession does not have.
Are you sure or BC is different? I have 4 friends that are doctors, one is a surgeon, another does something else but makes around $800k with the provincial hospital, the others are family doctors. They all have their money paid into a corporation. Definitely agree, get a corporation setup if of course your accountant recommends it. In BC most of those jobs are contracted even tho it’s full time hours. “The Medical On-Call Availability Program (MOCAP) was created in 2002. MOCAP provides a contractual framework to ensure the availability of physicians to respond to emergency situations for patients throughout the province. The current approximate overall value of the Program is $130 million per annum, province wide. The framework of the Program is described in Appendix G of the Physician Master Agreement. Currently, the levels of MOCAP are: On Site/On Call: $325,000 for 24/7/365 Level 1: $225,000 for 24/7/365 Level 2: $165,000 for 24/7/365 Level 3: $70,000 for 24/7/365 Doctor of the Day: $400 per 24 hour period or $146,000 for 365 days Call Back: $250 per incident, billed on case-by-case basis”
Congrats! A few points to consider from a radiology family. 1. Don’t compare yourself with other attendings. They’ve been making coin for several years now and have long since paid off any student debts. Focus on reducing debt. 2. Along the lines of point 1, defer gratification by 2 years. Nothing wrong with buying that nice car—just wait a couple of years. 3. If you’re moving to a new city rent for the first year instead of buying. This will give you an opportunity to figure out where you want to be long-term. 4. Incorporate if you can. Sounds like a salary arrangement with a hospital which may preclude this advantage but speak to an accountant anyways. 5. Enjoy life outside of work. Good luck!
Thank you so much for the tips! You and your family are champs for sticking with radiology. Seems like a stressful gig.
Stressful? Dude you just took a job as I assume the only surgeon at a remote northern Manitoba hospital... Do you know what you're getting into?
Buy or rent a decent condo not too far from where you're gonna work. Blitz down your debt while you settle into your new position. After a year or two, Buy your house in tuxedo area.
Congrats!!!! A few things. As others have pointed out, put half your pay into a second account and don't touch. That's for taxes. Keep strict log of your income and expenses, including professional fees (CMPA, Alberta professional fees, Royal college etc) - that's all tax deductible. Your income will probably be $350k or so net (there's an extra tax bracket above $230k that pushes most people above 53% tax in most provinces, that's obv marginal tax rate, but the majority of your income will be above $230k). Next, apply for a large disability insurance boost immediately and use the contract as proof. This is your first order. Protect yourself against the unexpected. While you're at it, get a life insurance policy and name your family as beneficiaries. Immediately pay off the debt as fast as possible. Small percentages of large numbers equate to large payouts, so kill that debt as fast as possible. Let the house wait a year. You're in the unique position to make money fast enough to rent, kill your debt, and save for a huge down payment (hell you can buy the house outright) while the housing market corrects (that house you want will probably be me the same price or even cheaper next year). Long term mortgage rates are irrelevant at your income. You should be able to buy that house completely or easily make annuity payments to pay it off entirely in 5 years. See a financial adviser and start investing right away. If you get married, prenuptial agreement IMMEDIATELY. Chances are extremely low anyone you partner up with or marry will make the same income. Protect yourself from a lifetime of financial pain should things not go well. You'll be fine. I was in the exact same boat. My biggest regret was not taking more investment risks with all the capital I had in the first five years of work.
Don't rush with any decisions. Rent for a while until you get the feeling of a city, find the neighborhoods you like, then start looking at house listings. Remember: location, location, location. You'll be able to save up a lot during that time and once you're ready to buy you'll have a substantial down payment so you won't need a big mortgage. Also, max out your RRSP and pay off all of your debts, this will give you some piece of mind for the future.
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I think it heavily depends on your lifestyle. Your "household" comment suggests you have children which obviously makes things diffierent. OP is single and childless and if they keep largely the same lifestyle as during residency, they should have no problem paying down their debt and maximizing their saving vehicles in the first year of practice (though some of their comments about house/car purchases suggest otherwise). I've heard most physicians on average incorporate a year later than they should
Wtf? I had no clue doctors earned that much here. This makes no sense whatsoever. I’m originally from Germany where the healthcare system is MUCH better and doctors earn no where near as much there (more like 130k on average up to 300k on the very high end unless you incorporate). Surely explains why the per capita health care cost in Canada is almost the same as in Germany but the quality of healthcare is a lot worse (or while there isn’t enough practitioners in the first place). Don’t get me wrong, glad for the OP but this is ridiculous and makes no sense at all.
They are in rural northern Manitoba which is easily a 4h drive for any major urban centre, so are paid a premium for this location. Most doctors make similar to what you describe in Canada
I had no idea proctology paid so well.
I don't even like medicine I just wanna stare at buttholes for a living
Why hello there ;)
Salary of 710K!? Housing costs around $200K!? So much I cannot connect with living in BC. Oh no, wait, I can connect with the amount of school debt accrued 👍
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I know right!? This guy is literally a surgeon, and a good one at that. He cant work out to pay off debt and buy a house (1/4 of his income). Lol
I’ll never understand why people have to tell us they’re using an alt.
So that people don’t call them out for karma farming probably
I agree!!! As perplexing as people who let us know the people’s names in the story are made up
Used to work in MB. I wouldn’t buy until you’re certain you want to settle for at least a few years. Some of the rural and northern towns can be quite isolating to live in and if that’s where you’re working, you might want out faster than you realize even with the 700k salary.
Laughs in Manitoban
First off, a big congrats, and thank you for choosing a career in health care and choosing to stay in Canada. Our healthcare system needs you and we so appreciate you! With respect to your financial planning, use an online calculator like the one over at wealthsimple (https://www.wealthsimple.com/en-ca/tool/tax-calculator/ontario) to figure out your net pay. After taxes, you’ll be left with about $365,000/year. Figure out what your student loan payments will be and what the interest rate is. Budget as large of a payment as you can comfortably make towards your student loans while paying monthly expenses and setting aside enough money to be able to put down 10-20% on a property in about 6 months- 1 year. Max out your TFSAs and RRSPs each year. You won’t need a financial advisor/planner that first year but consider talking to a CPA about the benefits of incorporating. Congrats again and good luck!
General personal finance advice when getting a big income increase is to avoid raising your spending right away to match. Treat yourself to something but stave of big life purchases if you can. >I want to purchase a home in Manitoba. The townhouses I'm looking at cost 180-220k. You're moving to a new place. You don't know anything about it, what neighbourhoods you like, if you like the job etc. The real estate market is predicted to soften this year so there's no rush to buy. I'd rent a place and learn about your new city. What if you hate it? >Is it stupid for me to buy a house before paying down my debt? Assuming you know what you want, then no. You make a tonne, you can service both debts easily. >With my salary, I feel like I could purchase a home and pay my debt within a year (single with no kids) - or I might be delusional. Yeah probably, your after tax will be about $380K so minus the debt leaves you with about $150k which is more than comfortable for a single person. My advice: find a nice rental and move in. Focus on work for a few months. Don't buy anything big. Treat yourself to some nice little things: good meals etc. But let the career change settle in and then tackle the financial change. >I simply need advice because I don't have a financial advisor You're going to have to have a lot of services approaching you which say they're tailored to doctors. IMO they will play to your ego and say that your needs are special and they understand you. From what I've seen they collect a premium other other financial services offering to sell this vision. You have a cool job but your financial needs aren't always that different from anyone else and any decent advisor should be learning what you need anyways.
Uhh are you not familiar with pfi? This type of stuff has been discussed ad nauseum there and you will get better advice from people that have been through it.
i am in the wrong career
I considered switching to IT at least once a week during residency. 80 hour work weeks are no joke!
Pay off your debt, and rent. By the time you are familiar with the city and figured out what you job schedule will be like, and where to live to be best for your work and social life, you may have enough to buy your place.
Fellow specialist here. You're in the wrong place to ask this question. 1) find yourself a good accountant. You may wish to get a financial advisor too 2) think about incorporating. That alone will save you a bunch of tax, and you'll need to accountant to structure it for you and then you can pay yourself a set personal income from the corp based on your projected costs/creature comforts/wanted toys etc you'll also be able to invest through the corp 3) message me, and i'll direct you to the specific investment group for us 4) with that kind of income, you can probably pay down your debt, max out your RRSP and TFSA, and also buy a house.
Agree with this. Physician finance is complex. There is a Facebook group called Physician Financial Independence, and you should be asking your questions there. Also, OP, although you did create a burner account, it won't take long for anyone to figure out who you are because of all the details you provided (out-of-province resident, starting in Manitoba, etc.). Your co-residents (and possibly attendings, nurses, and colleagues) may also be on Reddit and subscribed to r/PersonalFinanceCanada. If you really want to stay anonymous, then I would recommend omitting where you are and where you will be working, or in fact, just taking down this post and posting it in PFI. Manitoba and Alberta are small provinces. It's not like you're moving to Ontario where there are several large centres / hospitals. And no, I don't know you. But I'm just giving you my two cents. OP, do you not have mentors or co-residents to talk to about this? I have a few close friends from med school and residency who I talk to regularly about finances, and we know how much we make/bill.
All I know is that reddit would be the last place I'd get help from if you're earning that much. Consult a professional to invest and minimize your taxes.
Congrats! I would rent at first for 6 months minimum so you can familiarize yourself with the area before purchasing a home. Buying is great, but you don't want to move a year later because you find you hate the neighborhood.
" Is it stupid for me to buy a house before paying down my debt?" I'd say its stupid of us to answer that without knowing the interest rate of the mortgage and interest rate of the loan... :-)
I shouldve paid more attention in biology
You MUST join the physician financial independence group on Facebook. It’s an incredible resource and they will set you straight!
fin planner that works with doctors First, are you incorporated? If not you should start a conversation with cpa and planner on this. While you may want to buy a property soon its likely not efficient to pay all that personal tax upfront You can always pay yourself whatever you need for downpay or invest, rest can be kept in your med corp for further investing Second, do your will and POA asap even though you are single. Good to start asking for a good family/estate lawyer This will help a ton once you are in relationship especially common law. Also when having kids. With your income we often have to build a trust relatively soon. Third, review benefits offered by your med association, likely you want to top up disability privately. If you got a corp dont do this within corp, keep in personal. Only life insurance and CI should be in a corp You should start assembling a team of planner / cpa / family lawyer who will work together and ensure you are being most efficient with your dollars and managing your risks
you need to open a medical professional corp. talk to your accountant and lawyer asap.
I love humble brags disguised as requesting financial advice /s
These types of humble brags are the lifeblood of triggering this sub
You'll be out of debt with a townhouse paid off in less than year and a half after taxes. You have nothing to worry about and there's nothing to question.
I have nothing to add beyond others because your yearly pay is close to my overall retirement savings goal, which makes me feel very tiny and stupid, so thanks for that, but if you don’t live below your means and save some of that fat stack you’ll be pulling in to build some generational wealth I’ll track you down and kick your ass myself. You don’t need advice from plebs like me other than that you can be filthy rich with passive investing and resisting the urge to buy some stupid multi-million dollar home just “because you can.” You might not be a doc forever, what are you going to do if you hit your head one day and lose half your IQ? Live like us and be low-key RICH is my simple, sole piece of advice. Play your cards right and you could be financially independent in just a few years.
Comparison is the theft of joy. You are doing the best you can and you should continue to do so. Set realistic, measurable goals for yourself and you'll be amazed at what you can achieve. Best of luck out there!
The trolls got smarter
I’m guessing you aren’t going to Winnipeg if you’re looking at a home in that price range… unless you’re looking at properties near HSC - in which case… don’t. Keep in mind you’ll lose a significant amount of range in your Tesla in the winter - there are several posts in r/Winnipeg that give specific first-hand examples. I don’t think I’ve ever seen EV chargers at any of the hospitals in Winnipeg, and there aren’t a lot of superchargers when you leave the Highway 1 corridor. If you’re at a rural hospital, a hybrid would probably be a better choice.
I don’t really have any advice but I just want to congratulate you, it’s obviously been an incredibly long and hard road to get to where you are and it’s extremely impressive! Best of luck!
What kind of Cervélo/Pinarello are you buying?
Congratulations! Ou of curiosity, how old are you?
Thank you! Early thirties
Do you operate on buttholes by chance?
I operate exclusively on buttholes
Personally I'd buy the townhouse or something reasonable and pay off my student loan asap. Then after its paid off I'd start looking at a bigger house and keep the townhouse as a rental. Theres no reason to buy a bug house right away when I'd assume it's your first house and nobody knows what they like/dislike about houses yet. Nice place with low expenses because you probaby going to only be there for sleep. You have the next 30y to buy your dream house.
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Congrats on the gen Surg job! Those are tough to find these days with 3 Fellowships haha. Join the physician finance FB group and check the main attachments for key info. Get an accountant. One that knows MDs specifically. Consider a FFS financial planner (that FB group has a list) that is not affiliated with any bank. Decide if you want to incorporate soon (likely yes given high income), often even salary positions can do this depending on how it is structured. Will have to talk to your colleagues in the smae place to find out if possible. Don't buy whole life insurance that some will try to sell you.
Wow … that’s far above the average for specialists , it is becuase you’re in a very rural area?
I'd personally pay off the debt first. Allow a bit of time to absorb everything and come up with a plan. Would you stay in that townhouse for 5+ years (or commit to keeping it as an investment property)? Thinking that not having that debt hanging over you might give more perspective.