Throughout my career I have worked with some very financially successful medical professionals. Based on their comments and personal experiences, I have compiled a list of top money tips for doctors.
Start investing early…and have patience
The most financially successful doctors started investing early, typically in property, as even young doctors can use the leverage of tax-effective borrowings to their advantage. I have witnessed doctors accumulate significant property and share portfolios from small beginnings, but it took them 10-15 years to achieve this. Hence, the message is to start investing early and persist.
I don’t believe it is wise to put all your eggs in one basket, and my experience in working with successful medical professionals has reinforced this. Many have built property and share-based portfolios, and rarely have they invested in just the one asset class.
As a doctor, you don’t need to have a finance degree, but having a good understanding of tax and investment principles will get you a long way. In particular, it will allow you to make more balanced and considered decisions.
Because there is such a lack of practical financial information specifically for doctors, we have developed the Medico CFO course, an online program to give doctors a solid foundation in all financial matters affecting them. The course has already been approved for CPD points by various Colleges. Please see www.medicocfo.com.au for more details.
Surround yourself with a good team of advisers
Even though it makes sense to educate yourself, it is still critical to surround yourself with a great set of advisers. Typically, doctors should be working with a specialist accountant, financial planner and finance broker as a minimum. The biggest benefits are that you save time (and thus money) and have access to an objective viewpoint to make long-term decisions.
Plan for contingencies
Life doesn’t always go to plan, and I have seen healthy medical specialists struck down with a severe illness or affected by an accident. Thankfully, the situations I witnessed ended well, with the doctor bouncing back to good health, and income protection and other policies providing for much needed financial support during the time of distress.
Summary – Money Tips For Doctors
I would be interested to hear your thoughts and perhaps own money tips for doctors. What has worked for you financially and what hasn’t? Contact me on email@example.com