Professional PracticeYour Professional Wealth Management Plan

Introduction Professionals, such as doctors, dentists, lawyers and accountants, have unique financial needs thatrequire careful planning. Whether you are looking for a way to grow your investments or planning forretirement, a comprehensive financial plan that incorporates today’s earning power with tomorrow’sretirement needs is essential to a successful financial future.

Those in the professional fields need to start planning for the future.The vast majority of Canadian Medical Association members are unable toparticipate in workplace Registered Pension Plans (RPPs), which makesphysicians more reliant on Registered Retirement Savings Plans (RRSPs) relativeto other retirement savings vehicles. In 2009, 38% of all MDs were 55 orolder, making retirement planning even more important.Source: Cihi.ca

Consider these numbers: The latest statistics on debt levels for students graduating from professional programs are staggering. According to a report published by the AmericanAssociation of Colleges, it is estimated that over 86% of professional graduates carry educational debt. The median debt burden for graduates ofpublic medical institutions is now over $119,000, and almost $150,000 forprivate medical school graduates. The debt burden for those in public law schoolsis over $78,000, while graduates from accounting programs have a median debtburden of over $56,000.

The Value of PlanningThere is no better feeling than knowing all the years of studying and hard work have paid off. When you setup your first office or welcome the first client into your practice, you know that all the years ofdedication were worth it.

Now that you’ve established yourself in your field, you have to start thinking about your financialfuture.

For many professionals, especially those fresh out of graduate school or in their first few years of theircareer, the potential of a good income and comfortable lifestyle may result in overspending, debt, andlittle or no savings.

Working with an experienced CIBC Wood Gundy Investment Advisor can help you balance the need toplan for your financial future and to assist you in managing your finances and saving for retirement.

A Team-Based ApproachWorking with a strong team in your office or practice is important to your success. Establishing a teamto help manage your personal and professional finances, including insurance and retirement planning,is just as important.

Choosing the right people with the right expertise can make the difference between growing yourwealth and facing financial hardship and unnecessary taxes in retirement. Your CIBC Wood GundyInvestment Advisor is a valuable member of your wealth management team and will oversee andmanage various aspects of your retirement and insurance needs to make sure you are on the rightpath to meet your financial goals.

In addition to your Investment Advisor, your team may also include:

A CIBC Wood Gundy Estate Planning Specialist* who will work with you and your InvestmentAdvisor to find tax-efficient solutions and insurance products that best meet your estate planningneeds.

A CIBC Business Advisor who will work with you to find the cash management and credit solutionsthat best match your needs.

CIBC Trust acts as your estate agency, managing all administrative responsibilities for your estate.

A lawyer who can help you with complex tax and legal issues that may arise before and during your retirement.

An accountant who will find solutions to minimize capital gains, estate and other taxes and helpmanage your finances.

* Financial Security Advisor in Quebec

27% of professionals will be the victims of fraud or attempted fraud 78% are worried about the safety and security of their assets

Source: Asset Protection: Concepts and Strategies, Chris Riser and Jay Adkisson 2009

Protecting Your AssetsWhile no one wants to think about the negative side of wealth, the reality is that well-known, affluentprofessionals are more likely to be more exposed to lawsuits such as malpractice. When you alsoconsider the potential for divorce, bankruptcy, fraud, all of which can drain your savings, beingprepared for the unexpected is the key to protecting yourself, your family and your assets.

Your asset protection strategy may include a foreign or domestic trust, an Individual Pension Plan (IPP)or an Insured Annuity. Your CIBC Wood Gundy Investment Advisor can help you establish a strategythat you’re comfortable with to help you build your wealth.

Retirement PlanningKnowing what type of lifestyle you want in retirement is an important first step in planning for thetransition of your practice, book of business or firm. While the sale or transfer of your business mayprovide you with additional retirement income, it’s essential to consider other savings vehicles andinvestment opportunities.

Effective transition planning is an important predictor of the future success of a practice, firm or office. Asenior partner should have 65% or more of his or her retirement income coming from sources outside thebusiness, such as stocks, bonds, mutual funds, pension funds etc.

Your CIBC Wood Gundy Investment Advisor can evaluate your situation and determine what investmentand savings strategies will work best for you and help you develop a financial plan that meets all of your needs.

56% of professionals are considered self-employed and are not covered by unemployment insurance or a company orgovernment pension plan, and do not receive a supplementarybenefits package.

Source: Underpinnings of professionals, Journal of Economics and Business, Timothy W. Koch, Chrislain Nounamo 2010

Protect Yourself Against theUnexpectedWhen you are committed to building your practice and managing the day-to-day operations of your business, insurance may be the last thing on your mind. But, major life changing events, such as a debilitating injury, accident or illness, can happen without warning, potentially putting your practice orfirm, and your financial well being, at risk.

Our Estate Planning Specialists can help you find insurance solutions, such as life, key person protection and disability insurance, that best meet your needs, giving you piece of mind knowing that you have taken steps to protect your family, your income and your business.

Giving BackIn today’s world of heightened social awareness, the desire to make a difference is quickly gainingmomentum. Canadians are increasingly viewing their personal wealth as a means to live well and as away to create a meaningful legacy for future generations.

Whether you wish to support the arts, conserve natural resources, advance medical research or help theworld’s underprivileged children, giving back speaks volumes about who you are and the values you holddear. In addition, there are many financial benefits to charitable giving. Whatever your objective, choosingto support a charity is an important and personal decision that can make a positive impact on your cause,your charity and yourself.

The CIBC Wood Gundy Giving Back program has made it easier and more efficient to donate to thecauses that are important to you. Simply open a donor advised fund with a contribution of $25,000 ormore, and recommend the charities that you would like to receive grants from your Fund. We takecare of the rest.

Incorporating Your Personal BrandBrand recognition is the key to the success for any business, including professional practices. Arecognized brand or name can help you establish yourself in the community, build trust with clientsand help grow the income potential of your practice.

In addition to lower tax rates, other benefits of incorporation include:

• Limited liability and protection of assets: As the owner of the corporation, your personalassets may be protected from liquidation if the corporation becomes insolvent.

• Retirement planning benefits: An Individual Pension Plan (IPP) can provide you with aguaranteed pension in retirement. In many cases, the amount that can be accumulated within anIPP is greater than what can be accumulated within allowable RRSP contribution limits, and assetswithin an IPP may be protected from creditors.

Your Trusted AdvisorAccording to the Wall Street Journal, those in professional occupations accounted for 47% of all totallosses involving financial mismanagement for the period between 2008 and 2010.

Don’t leave your financial security to just anyone. When you work with a CIBC Wood GundyInvestment Advisor, you’ll have the peace of mind that comes with knowing we put your interests first.

For over 100 years, generations of Canadians have relied on the expertise of CIBC Wood GundyInvestment Advisors to manage their finances. Today, our Investment Advisors continue to build relationships with their clients based on trust and integrity; values that make our name synonymous with excellent service and expert investment advice.

www.cibcwoodgundy.com

CIBC Wood Gundy is a division of CIBC World Markets Inc., a subsidiary of CIBC and a Member of the Canadian Investor Protection Fund and Investment IndustryRegulatory Organization of Canada. Insurance services are available through CIBC Wood Gundy Financial Services Inc. In Quebec, insurance services are availablethrough CIBC Wood Gundy Financial Services (Quebec) Inc. Clients are advised to seek advice regarding their particular circumstances from their personal tax andlegal advisors.

SKU-0003 E