Like many other doctors, you probably take home a large pay packet. But are you making the most of the money you earn? Or is it slipping through the cracks?
There are a few key areas where doctors can pick up potentially thousands of dollars a year that may have otherwise been lost.
In this post, medical accountant Kym Nitschke discusses six commonly missed financial opportunities for doctors. With careful planning, you can seize these opportunities to save and grow your wealth.
1. Lost Super
If you’ve worked for several different clinics, companies or hospitals, then you may have multiple super accounts that you’ve forgotten about. Lost super is one way that many doctors overlook thousands of dollars. Not only does lost super represent forgotten funds, but having multiple neglected accounts means that you could be losing money in fees to every single one of those accounts.
It takes just minutes to log in to myGov where you can locate all of your super funds and consolidate them into one account.
2. Salary Sacrificing
While we’re on the subject of superannuation, it’s important to mention the option many doctors have to sacrifice a portion of their salary to their super fund. Not only does this result in immediate tax benefits, but it increases the amount available for retirement savings. Many doctors prefer to immediately spend their after-tax earnings and don’t consider the wiser option of sacrificing a portion to invest in their future.
3. Loan Refinancing
Many doctors spend too much of their hard-earned money on repayments and fees connected with the same loans they’ve been sitting on for years without much thought.
You don’t have to stay stuck in the cycle of losing money to the same old debt repayment cycle.
Did you know that you may qualify for a better interest rate now than when you first took out that loan?
Refinancing is also a good way to take advantage of your credit score which is likely better now than it was years ago. Additionally, refinancing through debt consolidation can help you minimise some fees and keep track of your repayment schedule.
4. Budgeting
Budgeting is an essential financial tool for everyone no matter how much they earn. Doctors should also live on budgets to help them manage their spending habits and consistently save for the future.
Some doctors think that living on a budget is too limiting for their lifestyle. But a budget isn’t necessarily about self-denial. Budgeting means working with the funds you have and ensuring that there’s enough to cover all of your regular and most important expenses. Budgeting is actually an important way for doctors to control their finances and grow their wealth.
Even with a simple budget, we predict you’ll find thousands more in your pocket this year.
5. Special Loan Deals for Doctors
There are actually special loan considerations for high-income earners such as doctors that you should take advantage of.
A few special loan provisions include:
– Having the Lenders Mortgage Insurance fee waived
– Significantly reduced interest rates
– Borrowing the full cost to pay for medical equipment
Like other doctors, you may not have known that these benefits existed. You can qualify for such discounts if you’re a registered member of a medical association. Talk to our medical finance team about this.
6. Tax Breaks
You can keep more of your hard-earned dollars in your bank account by looking for as many tax breaks as possible. Doctors qualify for a large number of work-related tax deductions. By keeping careful track of your business and professional expenses, you can qualify for significant reductions on your tax bill.
Some commonly missed tax deductions for doctors in Australia include:
– Personal loans
– Clothing and protective footwear for your job
– Professional membership fees
– Accounting expenses
Get advice
These financial opportunities are just scraping the surface. When you work with an accounting and financial planning team that specialises in the medical profession, you’ll be fast tracked towards your wealth goals in no time.
Contact Nitschke Nancarrow, specialists in accounting, financial planning, loans and finance, investment and business for medical professionals. We operate in Adelaide, Sydney, Melbourne and throughout Australia. Managing partner Kym Nitschke is available for a free initial discussion about your situation. Call us on (08) 8379 9950 or send me an email.
– Kym Nitschke
The information contained on this web site is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser.
Taxation, legal and other matters referred to on this website are of a general nature only and are based on Nitschke Nancarrow’s interpretation of laws existing at the time and should not be relied upon in place of appropriate professional advice. Those laws may change from time to time.
Nitschke Nancarrow specialises in accounting, tax and financial advice for superannuation. Contact us now for a no obligations discussion about your needs.
