Doctors: needs change as your career evolves

From qualification to retirement, doctors need banking services tailored to their situation as they advance through their career. Charles Sunnen, Head of Liberal Professions at Banque de Luxembourg, describes the bespoke solutions offered by his team.

What are the main challenges facing young doctors today?

Charles Sunnen: Armed with their qualifications after many years of study, young medical specialists graduate with excellent qualifications but rarely have much experience in the financial, legal, tax or organisational aspects of setting up a practice. It is not unusual for young doctors starting out independently to feel overwhelmed by the steps they need to take and the choices they need to make. Many are looking for reliable support to help them get started as smoothly as possible. This crucial step raises pragmatic questions, particularly in terms of financing the practice, tax management, cash flow management, the acquisition of often expensive equipment and administrative management.

What advice would you give them?

C.S. My one piece of advice to them is to plan ahead! Even while you are studying, it is useful to attend conferences, seminars and workshops to understand the steps involved in setting up a practice. To this end, Banque de Luxembourg organises an annual get-together with experts and newly established doctors to share their experiences. Another crucial point to bear in mind is setting aside funds for tax from the outset. When you start your business, you will see an appreciable increase in your income because the tax paid upfront ‘on account’ is calculated on the basis of the previous financial year. Failing to plan ahead can lead to unexpected and potentially sizeable tax demands.

So you offer support even before they set up their practice?

C.S. Absolutely. At Banque de Luxembourg, our commitment to excellence is reflected in the personalised support we offer doctors at the start of their career, not only through our range of services – opening accounts, financing the practice and equipment, and establishing savings plans – but also through the various workshops we organise that cover topical issues, small group coaching, etc. We support healthcare professionals across all their needs, both personal and work-related. And because everyone’s situation is different, all our clients receive tailor-made support from a dedicated adviser.

Why is it so important to have a single adviser to provide tailor-made support?

C.S. Because we are an accessible smallish structure we can focus our efforts on a select number of clients per adviser to ensure we are highly proactive and readily available. With an average career of 17 years at the Bank, our advisers build long-term relationships of trust with their clients. At Banque de Luxembourg, our advisers know that every client is unique. They make every effort to ensure that each client's projects are understood and prepared for with care and rigour.

Once a doctor has an established practice, what additional services might be helpful?

C.S. After they have achieved a certain level of stability, many professionals are keen to grow their business or personal wealth, perhaps by investing in commercial property (such as opening a new practice or expanding an existing one) or by embarking on a private project, such as purchasing a main residence or rental property. Our Liberal Professions division focuses on structuring financing, optimising cash flow and diversifying assets.

As a doctor approaches retirement, what added value do you offer and what does this mean in concrete terms?

C.S. We assist with the transfer of patient lists by facilitating links with young healthcare professionals, sometimes as part of a transitional year. Our experts in succession and wealth management have the necessary skills and resources, whether the assets concerned are located in Luxembourg or abroad.

Our goal is to pave the way for the handover in the best possible conditions for a smooth transition.

How does Banque de Luxembourg's longstanding expertise enrich this support at every stage?

C.S. We are a private bank and our DNA is rooted in a long-term vision. This translates into the creation of diversified portfolios, investment in solid companies and avoidance of speculation. It is essential to start investing early to build up assets that complement real estate.

Doctors: start planning even when you are still a student.