Having completed years of training and establishing yourself as a specialist consultant in the field of your choosing is a phenomenal achievement. You should be congratulated on making it to this stage and realising your professional goals.
However, although you might take some time to reflect on your journey, it is certainly not a time to be resting on your laurels. You might be thinking about some financial and personal goals to achieve or perhaps even considering retiring early.
At this stage, your financial affairs should already be quite organised and you should have a plan in place and working for you. However, there is always more to think about to ensure you are doing everything you can to achieve the rest of your goals and always be in the best possible financial position.
Our top 10 money management tips for established doctors are:
1) Know what’s important to you
There are 3 areas of life that are intertwined and dependent on each other:
Social – your house, holidays, lifestyle assets and children’s education to name a few;
Financial – the accretion of wealth and financial security along yours and your family’s journey; and
Professional – the advancement of your career, the achievement of your professional goals and peer respect within the medical community.
Having an adviser who understands which are your priorities and appreciates that these are paramount for you as a medical professional is important. That is where the specialisation of your financial support team into the medical industry becomes key.
2) Live your philanthropic vision
A lot of our established clients will entertain the possibility of helping those less fortunate later in their career and careful planning can make this tax effective and a real possibility.
3) Consider succession planning
Unfortunately we all leave this ‘mortal coil’ and that includes our parents. It is important that the treatment of funeral costs and any potential inheritances is taken into account.
4) Plan for retirement leading into estate planning
It is never too early to start as the compounding effect of returns is crucial. Superannuation and other investment vehicles are cornerstones to achieving a healthy financial position.
5) Don’t overlook personal risks
You will need income protection until the day you retire. Life cover and trauma cover is vital but needs to be analysed and may reduce as you approach the end of your professional career and have less family reliance on your income.
6) Get advice
Whether it be an investment property/holiday house or a suite of blue chip shares, take advice from and trust professionals as your patients do with you. Ensure your adviser understands you and your profession to get the best possible outcome.
7) Value relationships
Ensure you have a solid and proactive relationship with your accountant and/or financial adviser. You will, in the normal course of professional life, need an accountant to handle your tax obligations then, as your wealth accumulates and you start thinking head about how you wish to live the last years of your working life, or start planning for retirement even, transition your financial relationship to one with a wealth adviser/financial planner.
8) Go blue chip
You are a busy professional and therefore your investment should not let you down. Look for solid long term investments that offer consistent returns.
9) Prioritise asset protection
You should ensure your wealth structure, now and into the future, is protected for you and your family. Your hard earned wealth can become vulnerable in many different ways so ensure you are aware and mitigate risk from any unforeseen circumstances by setting up appropriate tax and legal structures.
10) Aim for peace of mind
Throughout your journey you should always know that your goals are realistic and most importantly, achievable. It is the job of your trusted financial adviser to ensure that by the time you decide to retire you have achieved financial peace of mind.
If you feel you could use some further assistance with your finances, now is the time to act. If you wish to speak to a DPM consultant about your concerns, goals or have any questions you should call 1800 376 376 or book a free no-obligation initial consultation here.
* The information contained in this site is general and is not intended to serve as advice. DPM Financial Services Group recommends you obtain advice concerning specific matters before making a decision.