Financial Planning For Incorporated Professionals

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Financial planning for incorporated professionals is often two-sided- planning for the practice and personal financial planning. A few things to keep in mind for professionals are:

• Professionals are typically in the highest income tax bracket; therefore, incorporating their practice can help them manage and defer taxes at a lower corporate tax rate.
• By incorporating, professionals can have access to dividends from their corporation, shareholder loans, and corporately held life insurance. 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 an advisor and accountant can help an incorporated professional find a way to balance their cash flow.

• 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 your Practice.

There are 2 main sides your practice’s financial plan should address: Growth and Preservation.

Growth:

• Cash Management- Managing Cash & Debt
• Tax Planning- Finding tax efficiencies
• Health Benefits

Preservation:

• Investment – either back into the business or outside of the business
• Insurance Planning/Risk Management
• Retirement Planning

There are 2 main sides your financial plan should address: Accumulation and Protection

Accumulation:

• Cash Management – Savings and Debt
• Tax Planning
• Investments

Protection:

• Insurance Planning
• Health Insurance
• Estate Planning

• Establish and define the financial planner-client relationship.
• Gather information about current financial situation and goals including lifestyle goals.
• Analyze and evaluate current financial status.
• Develop and present strategies and solutions to achieve goals.
• Implement recommendations.
• Monitor and review recommendations. Adjust if necessary.

• Talk to us about helping you get your finances in order so you can achieve your lifestyle and financial goals.
• Feel confident in knowing you have a plan to get to your goals.