Many medical professionals are mistaken in thinking that, as a high paid doctor, they’re set for life and won’t ever have to worry about money. Medical Accountant Kym Nitschke shares how you can avoid the dangerous overconfidence that plagues so many doctors.
“Become a doctor and you’ll never have to worry about money ever again.”
Or so they say.
Most medical professionals do earn good money, but that still doesn’t guarantee wealth. Being a doctor can actually be quite high-risk when it comes to finances.
Watch out for these common issues that can cripple both your financial goals and even your very livelihood, if you let them.
Not Having a Wealth Strategy
It’s understandable that you’re not thinking too much about the future when you’re so busy with the here and now.
If you’re a young doctor you may just finished studying; your priorities are to pay off student loans and set up a comfortable lifestyle.
Surprisingly (and dangerously), many experienced medical professionals also do not have a wealth strategy.
Now more than ever you must start thinking long-term. Create an investment strategy. Decide what you need to save for. Start thinking about retirement even if you’ve just graduated.
Think beyond today because there isn’t as much time left as you think. If you only live in the moment, you’ll burn through money faster than you can keep track of it and end up burdened with even more debt. Resist the pressure from family and peers and live ‘according to your means’ and live so that you’ll have plenty in the future.
Having a Poor Tax Strategy
Remember: the more you earn, the more the government will ask back from you.
Don’t make the mistake of leaving your taxes to chance. You could be paying too much or paying dangerously too little if you aren’t sure of what you’re doing. You may prefer doing your taxes yourself, but like many other doctors, you might not realize just how complex your situation is.
Seek professional assistance come tax time.
From a malpractice suit to getting hurt on the job, disastrous accidents can befall you faster than you thought possible.
Avoid being caught underinsured in such an event. Make sure you have cover that will sufficiently protect your finances in times of trouble.
Making Dodgy Investments
Unfortunately, doctors can be prime targets for some dodgy investment schemes. If you’re earning a good income, you too may be tempted to dump some of it in a high-risk investment. Even if you don’t invest much money, you can still suffer painful losses because of some poor investing advice.
Plan out your investment portfolio by consulting with a trusted financial adviser before you dive into the investing waters.
Some doctors think that the key to success is working as much as possible. They feel that time is money so they’re willing to sacrifice their family and own wellbeing to work constantly and earn, earn, earn.
But this approach is not guaranteed to make you financially-secure and will only jeopardise your health and happiness.
Instead of working harder, work smarter. Expand your team by bringing on a partner or two. This way, there will always be someone else in the office when you’re not there and free up more of your time to do what you love.
Reliable Financial Advice for Smart Doctors Who Do Worry About Money!
Are you a medical professional that could do with some wealth management support? Worry about money no longer.
Contact us for a free, no obligations discussion about your situation. Nitschke Nancarrow is a specialist accounting and financial planning practice for medical professionals.
– 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.