Financial Planning for Incorporated Professionals
Financial Advice for Incorporated Professionals
Financial advice for incorporated professionals is often two-sided- advice for the practice and personal financial advice. A few things to keep in mind for professionals are:
Professionals are typically in the highest income tax bracket; therefore, incorporating your practice can help manage and defer taxes at a lower corporate tax rate.
By incorporating- professionals can access dividends from their corporation, shareholder loans, and corporately held life insurance, and since money can be left inside a corporation- this money can be used in years when there are life changes such as pregnancy, buying a home or retirement.
Professionals should also ensure that they have access to health benefits.
Debt for a professional is not unusual, given the costs of education and equipment. Therefore, working with us and your accountant can help you find a way to balance your cash flow.
Why do you need Financial Advice?
- Worry less about money and gain control.
- Organize your finances.
- Prioritize your goals.
- Focus on the big picture.
- Save money to reach your goals.
For an incorporated professional, personal and practice finances are connected. Therefore, both sides should be addressed: Personal and Practice.
What does Financial Advice for an Incorporated Professional include?
There are two main sides your practice’s financial plan should address: Growth and Preservation
Growth:
- Cash Management- Managing Cash & Debt
- Tax Advice- Finding tax efficiencies
- Health Benefits
Preservation:
- Investment- either back into the business or outside of the business
- Insurance Planning/Risk Management
- Retirement Planning
What does Personal Financial Advice include?
There are two main sides your financial plan should address: Accumulation and Protection
Accumulation:
- Cash Management – Savings and Debt
- Tax Advice
- Investments
Protection:
- Insurance Planning
- Health Insurance
- Estate Planning
Next steps…
Talk to us about helping you get your finances to achieve your lifestyle and financial goals.
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