Advice for Personal and Private Banking

You’re focused on your medical career. Let us focus on your financial well-being.

You dedicated your career to taking care of others and now it is time to enjoy the next chapter of your life — retirement. You deserve specialized advice and answers to your questions to help you manage your retirement finances. We break down some of the top banking questions that retiring and retired physicians ask.

Frequently Asked Questions

We understand that your time is valuable and that having to deal with multiple people can be challenging. Through the Scotiabank Private Banking Group, there is a heavy emphasis on being responsive. Your Private Banking representative can offer a single point of contact so you transact with confidence, have fewer delays and time to do more of what you want to do.

When you begin to draw income in retirement, there are different tax consequences for each source of cash flow. For instance, withdrawals from your registered retirement savings plan (RRSP) and registered retirement income fund (RRIF) and Canada Pension Plan/Quebec Pension Plan (CPP/QPP) payments are currently taxed as income.

 

Your personal portfolio of investments and your corporate investments (if you’re incorporated) are taxed according to the type (e.g., interest, dividends, capital gains). There is no tax when you withdraw funds from your tax-free savings account (TFSA).

 

If you want to minimize the tax you’re paying in early retirement, withdraw funds from your TFSA first, since withdrawals are tax-free. Follow this with your personal portfolio and your corporate portfolio, and then finally your CPP/QPP and RRSP/RRIF, because they are fully taxable. However, minimizing taxes today could see your taxes payable at death increase. Speak to an MD Advisor about the options and consequences of different retirement income plans.

 

Read the e-book Retiring as an incorporated physician.

If you’re an incorporated physician (or a retired one with a holding company), estate planning can be more complex than for other physicians. Your executor must have the time — as well as the knowledge of business, tax and estate laws — to manage your estate and the corporation you’re leaving behind.

 

There are possible taxes that many incorporated physicians need to take care of in their estate plan.

 

Your MD Advisor can refer you to an MD Estate and Trust Advisor to discuss estate planning strategies to help protect your family’s assets.

 

Learn more about estate planning for incorporated physicians.

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Already an MD client and want to talk about your financial plans? Contact your MD Advisor or visit MD.ca

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To learn more about the banking solutions available to you, book an appointment with an Advisor or call Scotiabank Healthcare+ at 1-888-222-3918.

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* MD Advisor refers to an MD Management Limited Financial Consultant or Investment Advisor (in Quebec), or an MD Private Investment Counsel Portfolio Manager.

This article is provided for information purposes only. It isn’t meant to be relied upon as financial, tax or investment advice, makes no guarantees about future financial conditions or performance, and shouldn’t be considered a recommendation to buy or sell investments or financial products. Information contained in this article, including information related to interest rates, market conditions, tax rules, and other investment factors is subject to change without notice, and [The Bank of Nova Scotia and MD Financial Management ] is not responsible to update this information. All third party sources are believed to be accurate and reliable as of the date of publication, and [The Bank of Nova Scotia and MD Financial Management] do not guarantee its accuracy or reliability. Readers should consult their own professional advisor for specific financial, investment and/or tax advice tailored to their needs to ensure that individual circumstances are considered properly and action is taken based on the latest available information.