Financial Planning Tips for Medical Residents: DIY Approach to TFSA & RRSP
Maria, a fourth-year medical resident, had a well-paying job before medical school, allowing her to build some investments and carry only modest debt. However, she was disappointed with her investment returns and wanted more control over her financial future. Like many physicians in 2025 who are reassessing their finances, she explored a DIY investing model for her TFSA and RRSP.
Maria decided to transfer her investments from her previous employer to a discount brokerage of her choice. Instead of moving them "in kind," she chose a cash transfer, ensuring she had complete control over her investment selections.
Maria’s 2025 DIY Investment Strategy:
RRSP Allocation: 70% into a U.S. index fund and 30% into a high-dividend fund to balance growth and passive income.
TFSA Allocation: 100% into a Canadian high-dividend fund to avoid U.S. withholding tax, which applies to TFSA accounts but not RRSPs.
Long-Term Plan: Monthly contributions and annual rebalancing to keep her portfolio aligned with her goals and market conditions.
Like many residents considering financial independence in 2025, Maria’s goal was lower fees, better control, and tax efficiency—all key reasons why more physicians are opting for a DIY investment model.
Key Financial Planning Takeaways for Medical Residents in 2025
✔ DIY Investing Can Work for Physicians: Many residents and early-career doctors choose this approach to reduce fees and align investments with their goals—but it requires financial confidence and self-education.
✔ Simplicity is Effective: A passive investment strategy using diversified ETFs can provide low fees, strong market exposure, and long-term growth.
✔ Tax Planning is Essential: Holding Canadian dividend investments in a TFSA while using an RRSP for U.S. and global equity ETFs can maximize tax efficiency.
✔ Consistent Contributions & Adjustments Matter: A disciplined approach with monthly deposits and annual rebalancing ensures your investments stay on track even in changing economic conditions.
Why More Medical Residents Are Managing Their Own Investments in 2025
Maria’s experience reflects a growing trend among physicians:
✅ Lowering investment costs by avoiding high-fee actively managed funds.
✅ Aligning portfolios with long-term career goals and financial independence.
✅ Maximizing tax-advantaged accounts like TFSAs and RRSPs.
✅ Maintaining flexibility to adjust investments as financial situations change.
For medical residents researching DIY investing in 2025, this approach provides a cost-effective, tax-efficient strategy to start building wealth early in their careers.
How Are You Managing Your Finances?
Are you considering a DIY model for your TFSA and RRSP in 2025, or do you prefer working with an advisor? Drop a comment below and share your experience!
🔖 #MedStudentDebt #ResidentLife #MDMoneyMatters #ResidentFinancialHealth #ResidentBudgeting #MedFinance101 #DIYInvesting2025 #PhysicianFinance2025