Advice for Personal and Private Banking

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.

Learn how to minimize the tax you pay when you draw on your retirement income as an incorporated physician, read MD Financial's e-book.

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.

For more information on estate planning for incorpated physicians, read MD Financial's e-book.