Life after medical school Finance for Doctors basic

1. Life after medical school
16th
February 2011

2. 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

3. 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

4. Where are you?

5. criteria for professionals
1. Academic qualifications
2. Expert and specialized knowledge in field which one is
practicing professionally.
3. Excellent manual/practical and literary skills in relation to
profession
4. High quality work
5. 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

7. Free resource
Management for Doctors
http://mbamedicine.moodlehub.com/

8. Finance for Doctors

9. Needs
• Home
• Spouse
• Family – children's education
• Car
• Holidays
• Reputation
• Professional excellence
• Retirement plan
• Pension

10. 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!”

11. 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

12. NHS Salary
–FY1 22,190
FY2 27,523
–ST1 29,411
–ST9 46,246
–Cons1 74,504
»Max 100,446
CEA Level 12 £75,796

13. 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

14. 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%)

15. Strategy
• Gather assets
• Reduce liability
• Manage living costs

16. 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

17. 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

20. • Asset – that which has value in money terms
for the purpose of financial reporting.
• Liabilities - that money owed by a business

21. • 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

22. Profit
• Profit(P) = Revenue(R) – Costs (C)
Utilised as follows:-
• 1) Retained for future investment and
growth –NHS Foundation Trusts and non
profit organisations
2) Paid out to owners and investors e.g. a
‘dividend’ –for profit companies
3) Paid as tax.