Financial planning for Doctors
As accountants and advisers to medical professionals, we usually see them make less effective financial decisions in their career and retirement. Medical professionals dedicate commitment and discipline to their career that their finances often take a back seat. Financial decisions are often made quickly without proper consideration of consequences or alternatives.
We want our clients to maximise the fruits of their hard work and get the house and car that they desire without having debt that would take plenty of years to pay off. A large non-deductible debt during the early part of your career can add years to pay it off. A manageable debt can afford you several options, including your child’s school, your holidays and the ability to start and fund a private practice so you can retire earlier in a stronger position.
For example, in terms of retirement goals, a person who earns over $350,000 per annum and wants to receive a $200,000 per annum of income in retirement would need his or her investment and superannuation pool to be around $4 million. To achieve this level, you need long term planning and strategy to ensure yearly saving and appropriate investing.
You can implement a proactive savings strategy early in your career to develop good habits instead of losing your cashflow position and control. We ask medical professionals what their monthly income is and what their monthly expenses are. Most have no clue or spend too much.
Accounting for Doctors
You can reduce your living expenses significantly in retirement but of course you would want to have the life you are used to when retiring. You also need to protect your lifestyle throughout your career especially that you have invested money and years to become a health professional. Medical professionals are typically bread winners and their family’s financial position could be significantly compromised without their income. It’s good to have comprehensive life insurance to mitigate any need to sell the family home or change your child’s school. Getting life insurance can be problematic as we age because of medical issues and underwriting policies so getting the right one as a medical professional while young and healthy is important as well.
Talk to the right adviser early in your medical professional career to make sure the best financial path is followed and rewards from your hard work are enjoyed at every stage of your life.
As you look for different ways to grow and improve your business, seeking professional advice could prove to be an important and helpful decision.
You can click here to speak to a business, accounting and bookkeeping firm. We also offer hospitality business consultation and mortgage services. We will give you a call to know more about your needs. We will explain to you how we can improve your business.
We would love to help you formulate investment strategies and streamline your processes to take your business to the next level. Our goal is to help you grow your business, find ways to invest more and increase your productivity.
Phone: 1300 328 855
Office Address: 902 Howitt Street, Wendouree, Victoria 3355, Australia
Postal Address: PO Box 2234, Bakery Hill, Victoria 3354
Phone: 03 97444522
Office Address: 45 Hamilton Street, Gisborne, Victoria 3437, Australia
Postal Address: PO Box 270 Gisborne Victoria 3437