1. FORWARD THINKING BUILDING THE RIGHT RETIREMENT PLAN FOR YOU
Denis Lessard, F. Pl., CIM®

2. DISCLOSURE
SPEAKER HAS NO CONFLICT OF INTEREST 2

3. Did You Know?
38% of Canadian physicians are semi-retired before going into full retirement
How long does semi-retirement usually last?
31%
34%
1-2 years
3-5 years
13%
23%
6-9 years
10+ years
Source: CMA Baseline Research 2010 3

4. Canadian Physician Retirement Trends
At what average age do most Canadian physicians plan to fully retire?
What percentage of retired Canadian physicians have an average income of $50,000+?
55-61
62-70
66%
76%
71-75
76+
86%
96%
Source: CMA Database 2014
Source: CMA Baseline Research 2012 4

5. Physicians’ Top Retirement Goals
Source: MD Financial Management Research Survey 2008 5

6. Seminar Objectives
Review MD’s five-step financial planning process for physicians, based on three pillars:
retirement planning
risk management
estate planning
Understand how the components of a financial plan are integrated and maintained
Introduce your MD ExO® team 6

7. THE FIVE STEPS 1 2 3 4 5 IDENTIFY AND PRIORITIZE GOALS
ANALYZE CURRENT SITUATION
DEVELOP YOUR PLAN
IMPLEMENT YOUR PLAN
MONITOR AND REVIEW YOUR PLAN

8. Retirement Planning What does retirement look like to you?
STEP 1: IDENTIFY AND PRIORITIZE GOALS
Retirement Planning
What does retirement look like to you?
How much income do you need to satisfy your goals and desired lifestyle?
What’s more important to you: leaving a legacy to beneficiaries or meeting your retirement income needs?
Do you have different goals for each stage of retirement? 8

9. STEP 1: IDENTIFY AND PRIORITIZE GOALS
Risk Management
Do you understand the liabilities incurred upon death, and the funding required?
Will you have creditors to satisfy at the time of death? ?
Are you willing to assume the associated risks? ! 9

10. STEP 1: IDENTIFY AND PRIORITIZE GOALS
Estate Planning
Which people do you want to account for in your estate plan?
Will you leave a legacy gift for heirs or charities?
Do you prefer a controlled distribution?
When did you last review or revise your will and powers of attorney?
What steps have you taken
to provide for your beneficiaries? 10

11. Retirement Planning Identify current savings allocated to retirement.
STEP 2: ANALYZE CURRENT SITUATION
Retirement Planning
Identify current savings allocated to retirement.
Calculate and consider government benefits such as CPP and OAS.
Establish the assumptions you will use to calculate retirement projections.
Identify opportunities and constraints.

12. STEP 2: ANALYZE CURRENT SITUATION
Risk Management
Identify the income your family will need if you die or become disabled.
Calculate the estimated estate tax liability.
Consider existing insurance coverage and other assets to fund these tax liabilities.
Identify opportunities and constraints.

13. STEP 2: ANALYZE CURRENT SITUATION
Estate Planning
Take an inventory of assets to assess potential tax liability at death.
Consider your corporate assets and how they will transfer at death.
Note beneficiary designations for registered funds and insurance (determine resources needed to settle the estate).
Compare needs and wishes with resources available, and identify gaps.
Maintain a plan for your corporation.
Ensure legal documents are in place and necessary expert referrals are made.

14. STEP 3: DEVELOP YOUR PLAN
Retirement Planning
Determine savings needed to achieve your goals and where to allocate the funds.
Construct an asset allocation strategy.
Identify additional income sources:
pension plan
insurance cash values
government benefits: CPP and OAS
Build in contingencies.
Consider strategies for tax optimization.

15. STEP 3: DEVELOP YOUR PLAN
Risk Management
Identify risk-mitigation strategies for both current and anticipated risk.
Use life insurance to maximize your estate for beneficiaries and to fund tax liabilities.

16. STEP 3: DEVELOP YOUR PLAN
Estate Planning
Close the gap on any capital needs required for the estate.
Identify strategies to reduce estate fees and taxes.
Put wishes in place re: beneficiaries and charities.
Maximize wealth transfer and minimize tax liabilities.
Plan for the wind-down of your corporation.
Engage lawyers, accountants and estate/trust professionals, as required.

17. Set up pre-authorized contributions for the savings you need.
STEP 4: IMPLEMENT YOUR PLAN
Set up pre-authorized contributions for the savings you need. !
Develop plans for your corporation.
Implement insurance solutions to mitigate financial risks related to death or disability.
Implement estate planning solutions to facilitate and maximize transfer of wealth to beneficiaries, and minimize taxes.
Keep your will and powers of attorney up to date.

18. STEP 5: MONITOR AND REVIEW YOUR PLAN
Financial planning involves using various assumptions to calculate financial projections. Be sure to revisit these projections to ensure you stay on track.
Your personal situation (e.g., family dynamics, job, goals, objectives) will change over time. All changes must be reflected in your financial plan. 18

19. Questions?

20. Important Information
These presentations are provided for informational purposes only and should not be considered investment advice or an offer for a particular security or securities. Please consult your MD Advisor for additional information concerning your specific wealth management needs.
The information contained in this document is not intended to offer foreign or domestic taxation, legal, accounting or similar professional advice, nor is it intended to replace the advice of independent tax, accounting or legal professionals. Incorporation guidance is limited to asset allocation and integrating corporate entities into financial plans and wealth strategies. Any tax-related information is applicable to Canadian residents only and is in accordance with current Canadian tax law including judicial and administrative interpretation. The information and strategies presented here may not be suitable for U.S. persons (citizens, residents or green card holders) or non-residents of Canada, or for situations involving such individuals.
Employees of the MD Group of Companies are not authorized to make any determination of a client’s U.S. status or tax filing obligations, whether foreign or domestic. The MD ExO® service provides financial products and guidance to clients, delivered through the MD Group of Companies (MD Financial Management Inc., MD Management Limited, MD Private Trust Company, MD Life Insurance Company and MD Insurance Agency Limited). For a detailed list of these companies, visit md.cma.ca. MD Financial Management provides financial products and services, the MD Family of Funds and investment counselling services through the MD Group of Companies. MD Financial Management Inc. is owned by the Canadian Medical Association.
Insurance products are distributed by MD Insurance Agency Limited, a CMA company. All life-licensed MD employees have life licences with MD Insurance Agency Limited, a CMA company.
MD ExO® is a trademark of the Canadian Medical Association, used under licence.
Banking products and services are offered by National Bank of Canada through a relationship with MD Management Limited. Credit and lending products are subject to credit approval by National Bank of Canada.
MD Private Investment Counsel offers investment counselling services, delivered by MD Financial Management Inc., a CMA company. Estate and trust services are offered through MD Private Trust Company, a CMA company.
© 2016 MD Financial Management Inc.
All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, photographing, recording or any other information storage and retrieval system, without the express written consent of MD Financial Management Inc. 20