Financial strategies to maximise your medical wealth.
Even though every doctor’s situation is unique, there are some sound financial strategies which apply to the majority of medical practitioners and their practices.
Here are the most important financial rules for doctors
- Choose the correct legal structure for your practice. This will allow the maximum amount of income distributed to lower tax rate beneficiaries including an investment company.
- Minimise or even eliminate non-deductible debt connected to home purchases and renovations, through the careful management of practice and investment cash flow.
- Defer tax as far as possible and use the improved cash flow for investment strategies and non-deductible debt-elimination.
- Claim every single deduction that is legitimately claimable including cars, home office expenses, phones, IT, medical indemnity and income protection insurance as appropriate.
- Invest in your home as a tax-free investment.
- Structure all your debt so it is connected to your practice and deductible at the highest possible marginal rate.
- Pay the maximum amount of Superannuation annually (up to the Government allowed limit- the RBL) and use gearing through non-recourse loans as needed.
- Use gearing in investments and SMSF to maximise the returns on your investments and to match tax deductions to reduce taxable income.
Most of our clients who come to us have rarely ever completed any of the above points and most don’t understand why the above strategies are considered core strategies for medical practitioners. Our goals over the course of our working relationship with you are to organise and structure your finances and in the process educate YOU so that you can take an active part (and enjoy) both the outcomes and the process of your financial planning.
Medical Wealth Strategy is a specialist field. The different structures and rules that apply to doctors both in the Public and Private arenas are distinct from any other. It is important that your financial adviser is a specialist in the unique nature of the rules and opportunities for doctors. The issues are not just about the provision of clear, prudent and conflict free advice that is strategically designed to ensure your own unique situation is fully protected – but to also ensure that you avoid the pitfalls that are inherent in the financial system.
Take advantage of our financial strategy services during which we will help you to refine your needs and consider an accounting and tax planning solution for you or your business going forward. Make an online enquiry today or call us on 13000 MEDIQ (63347) and let us help you solve your accounting or tax problems.