Medical Professionals

Corporate Investment Account

The current Canadian tax regime offers an excellent opportunity for incorporated individuals to accumulate excess funds within their corporations. DPWM creates and manages accounts for these corporations and offer a range of options from the very conservative such as premium rate GIC’s to the very aggressive such as small cap trading strategies and many options in between. The goal is to protect, manage and grow these funds to meet the goals and objective of each client.

In most cases the financial plan drives the investment selection process. Aligning the portfolio with the required rate of return allows us to manage the investments with a minimum of risk in order to meet certain objectives. The range of options includes but is not limited to cash, bonds and GIC’s, equities, mutual funds, ETF’s and life insurance.

Corporate investment accounts may take on many different forms depending on the objectives of the funds. Many operating companies have short term cash management needs and the rates offered by their banking institution are not competitive. Holding companies allow business owners to invest cash while providing a measure of creditor protection. Family Wealth Corporations are on the cutting edge of current tax planning opportunities and can help to minimize tax both now and into the future.

Specialized Corporate Borrowing

Medical Professionals often have significant borrowing requirements that are best served by a bank that recognizes their unique needs. RBC Financial Group has a team of dedicated senior account managers created exclusively to work with health care professionals who provide relevant advice for the professional’s more complex financial borrowing and banking needs.

These senior account manager professionals have the ability to help finance up to 100% of practice purchase, start up, transition or expansion as well as lease financing of up to 100% of equipment value.

They also assist in all the day to day banking and payment requirements that go along with running a practice.

Individual Pension Plans

One of the major benefits of being incorporated is the ability for the corporation to establish a defined benefit pension plan for one or more of the shareholders. This Individual Pension Plan or IPP replaces the shareholder’s RSP and acts as the main retirement savings vehicle. The major benefits of an IPP are:

1. As a DB pension plan, retirement income is defined and predictable
2. As a registered pension, an IPP enjoys protection from creditors
3. IPPs help maximize retirement benefits since the amount that can be accumulated within an IPP is greater than what can be accumulated within current RSP contribution limits
4. Investments grow on a tax-deferred basis, meaning you don’t pay any tax on investment income generated within the plan until you actually start receiving payments. Typically, this results in much greater growth over time
5. In the event of poor investment performance the corporation can top up the plan and receive additional tax deductions for doing so
6. Contributions, Investment Management Fees and Actuarial fees are tax deductible to the corporation.

Permanent Life Insurance

Permanent life insurance is one of the most effective ways to accumulate, grow and transmit wealth from one generation to another. In the event that a client is unlikely to require all of the assets that they will accumulate over time, serious thought should be given to the ultimate purpose of those funds. Whether it is for an inheritance, charitable endeavours, the creation of a foundation or any combination of these a permanent life insurance policy should be considered.

In addition to the life insurance coverage, it is also possible to hold investment assets within the policy where they can grow tax-free. Once the insured’s life ceases the death benefit and the accumulated investments flow out to the intended beneficiaries free of tax and probate. This strategy works even more effectively when the policy is owned in a corporation.

The range of investment options within the policy can be as conservative or as aggressive as the policy holder chooses and some forms of permanent insurance offer investment in areas not covered by conventional portfolio investment.

Disability Insurance

Disability insurance is designed to protect your most valuable asset: your ability to earn an income. Disability insurance benefits help replace lost employment income by providing insurance benefits (i.e. an "income") if a policyholder is unable to work because of disability. This may be for a short period of time - long enough to allow the insured to recover and resume normal work activity, or, long term - to provide replacement income during the insured's lifetime.

Critical Illness Insurance

Critical illness insurance provides a one-time lump sum tax-free cash benefit when an insured individual is diagnosed with and survives 30 days from one of a number of predetermined illnesses, including cancer, Parkinson’s, or Alzheimer’s diseases, or events such as heart attack, stroke, or bypass surgery.

The tax-free payments from a critical illness policy may be spent in manner you choose and will help to protect your quality of life during and after recovery.

The benefit of this type of policy is that it allows you to focus on what will be important to you ... a return to health and wellbeing, without worrying about finances. You can spend the money any way you choose.

Concerns for children’s education, the affordability of something for yourself or for others, or how creditors will be paid may be relieved. So may the fear of liquidating investments and the associated consequences on retirement or estate planning.

Long Term Care Insurance

Long term care is the medical and/or social services term for helping people who develop disabilities or chronic care needs. In the event you can no longer care for yourself, you will require long term care. For example, there may be a time when you or a loved one need help walking, getting dressed, eating or bathing. This need can develop due to such things as arthritis, cancer, heart disease, or simply frailty due to old age. Long term care services also include the kind of care you would need if you had a severe cognitive impairment such as Alzheimer’s disease.

Long Term Care Insurance (LTCI) is a relatively new insurance product in Canada that provides a regular source of funds to pay for necessary care, relieving the financial burden, and providing options and flexibility for choice and location of care.

Long term care needs can be either a brief period with full recovery, or it can go on for many years. Long term care services can be provided in a person’s home, in the community or in a residential facility such as a nursing home or assisted living facility.

Most people who need care prefer to stay in the comfort of their home. For this reason, many people receive care at home instead of in a nursing home. Although most people do not opt to be in a facility, circumstances may dictate that this is the most favourable/economical option.