Lay people think that doctors have little to worry about financially. They assume, based on media portrayals, that doctors have the easy life of fancy homes and sleek cars. However, they neglect to understand the amount a doctor invests in pursuing that career. They don’t pay attention to the fact that liability insurance for doctors is sometimes astronomical. And, they just don’t plain care that doctors might need money advice. But we do.
Doctors who care about their patients are likely to employ companies like True Health Diagnostics. They want their patients to have access to laboratories that are committed to helping regulate the cost of long term medical care. They want to see patients, costs, and risks managed in a responsible manner. Unfortunately, they don’t always apply that desire for proper management to their own financial situations.
Let’s be Honest
Many doctors live from a sense of entitlement. They recognize the hours and dollars they have put into achieving their positions and they expect those sacrifices to pay off. This leaves them spending what they make without considering that their lavish lifestyles will not be supported when they retire, devoid of a savings plan or tangible investments.
Doctors are often quite brilliant, but their money decisions don’t always demonstrate that intellectual acumen. Sadly, many of them believe that because they are so knowledgeable in the medical field that this education will somehow transfer over to the area of financial prowess. There are a number of great doctors who have lost considerable amounts of money due to thinking that they could invest in “hunches.” Read this story.
Advice for Doctors
The best advice we can give doctors is to acquire a financial advisor. Find someone that is trustworthy and can handle all your investment and portfolio development needs. If doctors can recognize that they are playing the role of the patient in these situations, maybe they will be able to humble themselves enough to listen to sound advice from people who are also well educated in their fields.
Doctors should seek out a financial plan that will provide them with the rewards they so desperately seek in their typical “spend what I make” mentalities. They should refrain from allowing their friends to coerce them into investing in products, companies, or other ideas without first seeking out sound advice from their accountants and financial advisors. Learn more.
The Things They are Getting Right
Up until this point in the piece, one might be thinking that doctors just can’t handle their money properly. And, in many arenas of life that is true, just look at the exorbitant homes, fancy sports cars, and exceptionally expensive attire. However, there are few things that doctors are getting right when it comes to planning for their futures.
Many doctors, especially those who have chosen to specialize in a certain medical field, purchase disability insurance. Thankfully, they realize that there are catastrophic occurrences that could completely hinder their ability to function in their area of choice. That means they protect themselves with disability insurance in the event such a tragedy ensues.
And, they are often easily encouraged to place significant amounts of money in a retirement plan simply because deferring their income means they get a tax break. Getting them to contribute to that retirement plan might take showing them how dire their retirement situations will be if they don’t contribute. Or, it might be as simple as showing them how much they can save on their taxes.
No matter what the method, doctors need financial advice, and they can get more here.