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Life after medical school Finance for Doctors basic
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Life after medical school
16th February 2011
Faculty• Ms Ruth Waters (RW)
Consultant Plastic Surgeon • Dr. Mike Clapham (MC)
Consultant Critical Care & Medical Education• Mr. Mike Waldram (MAW)
Consultant Hand Surgeon• Dr Ian Rayner (IR)
Consultant Psychiatrist Mr Vaikunthan Rajaratnam (VR)
Consultant Hand Surgeon
Life after medical school
• Why?• Everything you wanted to know about being a
doctor but was afraid to ask• What they don’t teach you in medical school• Its different being a doctor
Where are you?
criteria for professionals
1. Academic qualifications2. Expert and specialized knowledge in field which one is
practicing professionally.3. Excellent manual/practical and literary skills in relation to
profession4. High quality work5. A high standard of professional ethics, behaviour and work
activities while carrying out one's profession 6. Reasonable work moral and motivation. 7. Is a individual who does not require supervision.8. Engage in altruistic activities
Free resource
Management for Doctors
http://mbamedicine.moodlehub.com/
Finance for Doctors
Needs
• Home• Spouse• Family – children's education• Car• Holidays• Reputation• Professional excellence• Retirement plan• Pension
Financial independence
• sufficient personal wealth to live indefinitely without having to work actively for basic necessities
• assets generate income that is greater than their expenses
• “Good medical practice requires doctors to be financially independent!”
Reading List
• Cashflow Quadrant: Rich Dad's Guide to Financial Freedom (Paperback) ~ Robert T. Kiyosaki
• Corporate Intensive Care: Why Businesses Fail and How to Make Them Succeed (Hardcover) ~ Larry Goddard
• The E-Myth Revisited: Why Most Small Businesses Don't Work and What to Do About It by Michael E. Gerber
• Accelerated Learning for the 21st Century: The Six-Step Plan to Unlock Your Master-Mind ~ Colin Rose
• The 4-Hour Workweek: Escape 9-5, Live Anywhere, and Join
the New Rich~ Timothy Ferriss
NHS Salary
–FY1 22,190FY2 27,523 –ST1 29,411 –ST9 46,246 –Cons1 74,504 »Max 100,446
CEA Level 12 £75,796
Personal Tax• Earnings up to £35,000 per annum are taxed at 20% (Basic
Rate) • Earnings over £35,000 per annum are taxed at 40% (Higher
Rate) • from April 2010 - new 51.5% income tax rate > £150,000.
(+ NI 1.5%)• Personal Allowance
2011/2012, £7,475 (less if income >100k)– Personal Allowance reduces where the income is above £100,
000 -(the full allowance would be extinguished at an income level of £112,950)
• (+ 20 % VAT)• Purchasing power parity issues
UK Corporate Tax Rates
• Companies with taxable profits under £300,000 pay tax at the lower rate of 21%
• profits of £2m would pay tax on all profits at 28%
• (personal tax after £150k = 50%)
Strategy
• Gather assets • Reduce liability
• Manage living costs
How to
• Set Up an Emergency Fund• Pay Off Your High Interest Debts• Set Up a Retirement Fund • Set Up Educational Fund• Pay Off Your Low-Interest Debt• Build Wealth Through Wise Investments
Definitions
• Profit is the incentive for business; and the reward for taking risk;
• role of accounts is to monitor and measure profits
• accounting – record keeping, verifications and reporting
• finance - predict future trends or to make decisions
• Asset – that which has value in money terms for the purpose of financial reporting.
• Liabilities - that money owed by a business
• Profit and Loss Account – trading performance of the business over the
accounting period
• Balance Sheet– Statement of assets and liabilities at the end of
the accounting period (a "snapshot") of the business
Profit• Profit(P) = Revenue(R) – Costs (C)Utilised as follows:-• 1) Retained for future investment and
growth –NHS Foundation Trusts and non profit organisations2) Paid out to owners and investors e.g. a ‘dividend’ –for profit companies3) Paid as tax.