From Graduation to Practicing: A Dentist’s Checklist

You’ve graduated! Congrats!

Your first thought upon exiting stage left probably wasn’t “financial planning” but, chances are, you’re probably going to start practicing pretty soon.

So here are a few things that are worth getting in order before the next phase of your career begins.

☑ Set up FHSA/RRSP for house downpayment

The sooner you can start using tax-shelters for a future downpayment, the better.

Even if “buying” is still a few years off for you, your most tax-effective means of saving for it is as soon as you start earning.

Setting up the appropriate accounts and making the most of them (so you pay the least tax) takes only a few minutes and will add real dollars towards your future home.

☑ Secure discounts on disability insurance

This is basically free money if you’re planning on getting disability insurance anyways (remember, you’re self-employed now so you won’t have worker’s comp).

It’s also free money that goes away if you don’t capitalize before you start actually practicing.

Insurance firms are keen to get new graduates signed up fast and, in order to actually incentivize, they really do hold the line on discount deadlines.

So don’t miss out on free money! Take that 15 minutes and sign yourself up.

☑ Save $$$ on your student loans

With graduation comes many good things.

One of the not-so-good things though is that you’ll start repaying your student loans.

While you might continue on with your current loan arrangement, there’s also the possibility that transferring some or all of your student loans over to a personal-line-of-credit would save you money. What makes sense for you will depend on your professional situation as well as current interest rates in private markets.

☑ Debt Repayment vs. Investments

This one depends heavily on the investing (and interest-rate) environment you find yourself stepping into.

In the spring of 2024, for example (when this is being written), rates-cuts are still pretty up in the air. This will have a profound impact on how you’ll want to balance debt repayment versus investing in something like the stock market.

While a lot is quite fuzzy when it comes to investing (if it weren’t, we’d all be rich!), there are some smart and basic things you can do to line yourself up for success. Get in touch to find out more.

☑ Tax Planning

The single biggest shock to most new dentists, even though they know it’s coming, is the size of their tax bill in the first full year.

Getting ahead of the curve here pays huge dividends, quite literally. Things that will probably make a difference for you are incorporation and being strategic with your RRSP/TFSA contributions.

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