Why the first three months after a liquidity event are the most expensive mistakes business owners make
You’ve spent years—maybe decades—building your practice or business. Now you’re on the other side of a transaction, and there’s a number in your account that’s larger than anything you’ve seen before.
Congratulations. You’ve earned this.
But here’s what nobody tells you: the next 90 days will determine whether that money works for you—or slowly disappears to taxes, inflation, and missed opportunities.
The Costly Comfort of “I’ll Figure It Out Later”
After a liquidity event, most dentists do the same thing: nothing.
The money sits in a savings account earning 2-3% while inflation runs at 3%. You’re treading water at best. Meanwhile, you’re fielding calls from every advisor, banker, and “wealth manager” in town who somehow heard about your transaction.
So you wait. You tell yourself you’ll get to it next month. You’re busy. You’re tired. You just want to breathe.
That’s understandable. But waiting has a cost.
Every month that money sits idle, you’re losing ground. A $2 million sum earning 3% in a savings account while inflation runs at 3% means you’re earning nothing in real terms (and losing after taxes!). Meanwhile, a properly structured portfolio with high quality private assets could be generating 7-10% annually—a difference of $80,000 to $140,000 per year.
Wait six months to “figure it out,” and you may have already left $40,000-$70,000 on the table. That’s not hypothetical. That’s math.
The Tax Decisions You Can’t Undo
Here’s what’s worse than leaving money in a savings account: making tax decisions you can’t reverse.
The 90 days after a major liquidity event are critical for tax planning. Decisions about how to structure your holdings, whether to trigger certain gains now or defer them, RRSP contributions and timing, income splitting strategies, and corporate investment account structures—these aren’t decisions you can revisit next year. Many of them have hard deadlines. Miss them, and you’re locked into a higher tax bill—potentially for years.
I’ve seen dentists lose six figures to tax inefficiency simply because they didn’t have the right conversations in the right timeframe. Not because they made bad decisions, but because they made no decisions until it was too late.
Why Your Bank Isn’t the Answer
When you deposit a large sum, your bank notices. You’ll get a call from their “private banking” team within days. They’ll be polite, professional, and eager to help.
Here’s what most investors don’t realize: traditional advisors at banks are often measured on assets gathered, not on client outcomes. These aren’t bad people—they’re working within a system that wasn’t designed with your best interests as the primary focus.
A typical recommendation? A standard plain vanilla 60/40 stock and bond portfolio that may have higher total fees. It’s presented as diversified, but it may not incorporate all the tools in the investment toolbox.
What’s more, most banks simply don’t offer access to the full suite of private investments—infrastructure, private credit, real assets—the very strategies Canada’s largest pension funds use to generate strong and steady long-term returns. And even when these products are available on the platform, the advisor you’re working with may not be aware of them or may choose not to use them. I’ve worked with clients who came from banks that actually had some (but not all) high-quality private investment options on the shelf—but they were never told about them. They can’t offer what isn’t on their shelf—or what they don’t know is there.
Sometimes the best product comes from a bank, sometimes it doesn’t – I’m independent, so I use the right product for you.
What the First 90 Days Should Actually Look Like
A proper post-transaction plan isn’t complicated, but it does require intentionality. In the first 90 days, you should:
Month 1: Get clear on your actual numbers—after-tax proceeds, existing assets, liabilities, and cash flow needs. No planning works without accurate inputs. Speak to your tax professional.
Month 2: Build an investment framework. Not picking stocks—understanding your risk tolerance, time horizon, income needs, and which tools (public, private, or both) fit your goals.
Month 3: Implement and document. Get the portfolio in place, the structures finalized, and the tax plan locked.
This isn’t about rushing. It’s about being intentional with a window that closes faster than you think.
The Real Question
You didn’t build your practice by accident. You made thousands of decisions—about equipment, staff, patient care, systems—that compounded over time into something valuable.
Your investment strategy deserves the same intentionality.
The question isn’t whether you can afford to get advice. It’s whether you can afford to wait.
Click here to book your complimentary Discovery Call where Shamez can talk to you about REAL strategies that work for YOU.
Mount Columbia Private Wealth specializes in working with dentists, physicians, and business owners navigating major liquidity events. If you’d like to have this conversation with us—and see how we answer these questions—we’d welcome the opportunity.