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How Doctors And Dentists Can Stop Wasting $1,000’s A Year

Yes, you are almost unknowingly wasting $1,000’s a year in a variety of ways.

How do I know this for sure? Because I work with doctors and dentists every day, and in optimising their financial affairs, I typically uncover many areas of financial loss.

There was one client where I saved the following costs in a matter of weeks:

– multiple superannuation funds consolidated: $8,500 p.a. in fees saved – duplicated insurance cover in super cancelled: $2,500 p.a. in premiums saved

How much do you think this will add to the client’s super over 10, 20 years?

3 simple ways to stop losing money

Let’s consider 3 simple ways you can start saving some more money:

Duplicated insurance cover

Many doctors and dentists take out personal insurance policies such as income protection and life insurance, but fail to consider the cover they already hold in superannuation.

When you consider that most people have more than one super fund, you can start doing the sums!

You should always seek professional advice before cancelling or amending any existing insurance cover, and make sure the planner doesn’t just ‘sell’ you any insurance, but properly considers all of your exiting policies as well

Multiple superannuation funds

As I have already highlighted, we see many doctors and dentists with 3-4 or more super funds. Every fund will have its own set of fees and insurance cover.

It is not uncommon for us to save client couples a few thousand dollars p.a. and sometimes well over $100,000 over 10-20 years!

How many funds do you have?

Again, please make sure you seek advice before closing any existing super funds.

Interest on loans

The interest rate environment is very interesting at present, but also very challenging. You could say that the banks’ pricing of loans is all over the place.

Existing customers typically don’t get good deals, whereas new loans might be priced more attractively.

Investment loans and interest only loans have become far more expensive.

In a recent example we saved a young doctor over 1% on her home loan, saving over $4,000 p.a. in interest, after-tax!

Make sure you talk to an independent finance broker, who specialises in working with dentists and doctors. You might be surprised how much you can save.

Learn more

I hope this has given you some ideas to start optimising your finances this year.

It really pays to educate yourself in personal money management, as you will become more aware of the different ways you can save more, and make smarter, confident financial decisions.

If you would like to learn more about personal finance for medical professionals, I recommend the following resources:

Or if you think you need my help, please call me on 0432 885 295 or email me at Yves@affluenceprivate.com.au

All the best for 2018!


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