Becoming a doctor is one of life’s most demanding professional journeys. Years of education, long nights, high stress—and once you get through it all, you finally begin earning the income you worked so hard to achieve. 

But earning a high income is not the same as building lasting wealth. I see this every day at Larouche Private Wealth Management in Northern Ontario. Many doctors make excellent money—but without a clear financial plan, much of that opportunity can slip through their fingers. 

The good news? A few focused financial strategies can make an enormous difference in a doctor’s long-term financial success. In this post, I’ll share key areas I focus on when working with physicians—helping them turn income into wealth they can rely on for decades to come. 

1. Using debt strategically to support long-term growth 

One of the first conversations I often have with new doctors is about student debt—and how to manage it strategically. 

The average physician I work with graduates with about $400,000 in student debt. Understandably, many feel an intense urge to pay it off as fast as possible. But here’s where thoughtful financial planning for doctors comes in. Student loan rates for doctors are typically low—often below the expected return on a well-structured investment portfolio. Rather than focusing entirely on debt repayment, many physicians can achieve better long-term outcomes by investing first, while managing debt repayments gradually. 

For example, I worked with a young doctor who came to Timmins with $350,000 in student debt. We built a plan that prioritized saving inside his corporation, while making manageable debt payments. In just four years, he now has close to $1 million saved in his corporation, along with a home and the ability to enjoy regular time away with his family. Had he paid off his debt first, he likely would not have reached these milestones as quickly. 

This is a perfect example of using debt as a tool, not a burden—allowing wealth to grow while managing liabilities wisely. 

2. Setting clear savings priorities from day one 

Once the income starts flowing, it’s tempting to immediately upgrade your lifestyle. But without intentional planning, this can result in spending increasing as fast as earnings—leaving little room for wealth building. 

One of the best things a doctor can do is adopt a pay-yourself-first mindset. Together with our clients, we map out clear savings targets—determining what percentage of income should go to corporate investing, RRSPs, and TFSAs. Only once these priorities are in place do we discuss larger lifestyle purchases. 

This approach allows doctors to enjoy life today—but with the confidence that they are building lasting wealth for tomorrow. It also helps avoid the common regret of “I wish I had started saving earlier.” 

3. Leveraging the power of incorporation 

Incorporation is one of the most powerful tools available to Canadian doctors. Used wisely, it can dramatically accelerate wealth building. 

Here’s how it works: doctors are allowed to retain earnings inside their professional corporation, paying a much lower corporate tax rate on that income. Only when funds are withdrawn personally do they face full personal tax rates. 

This means that doctors can build significant retained earnings in their corp—investing those funds and allowing them to compound tax-efficiently over time. Later, in retirement, they can draw down funds strategically, smoothing income and minimizing tax. I always help clients design a strategy that: 

✅ Maximizes use of retained earnings

✅ Balances corporate and personal investing

✅ Utilizes tools like corporate-owned life insurance as part of the plan

✅ Manages investment levels to preserve the Small Business Deduction and optimize tax outcomes 

When this structure is used properly, doctors can create a powerful personal pension—built on their terms. 

4. Managing the Small Business Deduction 

As retained earnings grow inside a corporation, doctors need to be mindful of the Small Business Deduction (SBD). Once passive investment income exceeds $50,000 annually, access to the SBD begins to decline—meaning a higher tax rate on active income. 

We use several strategies to help manage this:

• Paying more salary out of the corporation to reduce retained earnings
• Focusing on growth-oriented investments that generate capital gains, which are more tax-efficient
• Leveraging corporately owned whole life insurance, which can provide tax-sheltered growth 

These techniques help preserve access to the lower small business tax rate—while still building wealth inside the corporation. 

5. Creating a personal pension strategy 

Unlike many professionals, doctors don’t have a traditional employer pension plan. This makes personal pension planning a critical part of a financial plan for doctors. 

In our work together, we focus on building a reliable income stream that can support a physician’s desired lifestyle in retirement—without surprises. 

Key elements of the strategy include:

✅ Thoughtful use of corporate investments to build deferred wealth

✅ TFSA and RRSP contributions to provide flexibility and tax-free/tax-deferred growth

✅ Structuring withdrawals to optimize tax treatment later in life

✅ Planning for future healthcare needs and family legacy goals 

Ultimately, the goal is to create a sustainable, tax-efficient income stream that allows clients to enjoy life long after their medical practice winds down. 

6. Protecting your most important asset: your income 

One of the most overlooked elements of a doctor’s financial plan is personal disability insurance. Your ability to earn an income is your number one asset—and it needs to be protected. 

For young doctors in particular, this kind of policy can be cost-effective while offering long-term security. 

7. Guiding doctors through each stage of their financial life 

Finally, one of the most valuable things I offer doctors is an ongoing advisory relationship that evolves with them. 

Incorporation decisions. Debt repayment strategies. Tax planning. Risk management. Family planning. Legacy design. 

Each stage of life brings new questions—and having an advisor who understands financial planning for physicians makes all the difference. 

A doctor who is just starting out needs different advice than one in mid-career or approaching retirement. By taking a long-term view of the relationship, I help my clients avoid short-term decisions that could hinder their future goals. 

Final advice: choose trust over promises 

If you’re a doctor thinking about hiring a financial advisor, here’s my best advice: choose someone you trust. 

The products and tools we use are similar across the industry. What matters most is finding an advisor who:

✅ Understands doctors’ unique financial landscape

✅ Provides clear, honest advice—not sales promises

✅ Takes a long-term, relationship-based approach

✅ Helps you see both the big picture and the fine details 

I always tell clients: my role is not to “sell” you an investment or guarantee a return. It’s to be a trusted partner who helps you make smart decisions—now and in the decades ahead. 

If that sounds like the kind of partnership you value, I’d be happy to have a conversation.

Darcy Larouche, a CERTIFICIAL FINANCIAL PLANNER^® professional, helps physicians turn their income into lasting wealth through smart incorporation strategies and tax-efficient planning.

Email: darcy.larouche@igpwm.ca 
Phone: 705-360-7777

^{This is a general source of information only. It is not intended to provide personalized tax, legal or investment advice, and is not intended as a solicitation to purchase securities. Darcy Larouche is solely responsible for its content. For more information on this topic or any other financial matter, please contact an IG Wealth Management Advisor. Insurance products and services distributed through I.G. Insurance Services Inc. Insurance license sponsored by The Canada Life Assurance Company.}