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.