2 Fatal Financial Mistakes Doctors Make

2 Fatal Financial Mistakes Doctors Make

According to the US Department of Labor, 9 out of the top 10 top earners call themselves doctors. What’s concerning is that almost half of doctors surveyed* say they are behind in their retirement planning.

Why is that?

I've surveyed our physician clients and I see several common reasons, one is that Doctors don’t receive any financial planning education in medical school yet they are perceived and are under pressure to be perceived as ‘successful’. Generally people equate success to having a lot of money.

Unfortunately, without the proper tools and the proper advice money does not beget money.

Here are 2 fatal mistakes doctors make with their finances:

#1) Getting bad advice

As previously stated doctors are known for being ’successful’ so they are often the target of investment schemes. Sometimes they simply take the advice of their peers which can result in poor outcomes. Specialists in medicine are referred to when there are cases that require specialized care. Every physician has financial needs specific to their industry and lifestyle. It’s just as important that financial advice is obtained from the right specialists because their cases require special care.

#2) Under utilizing the potential of your taxes

Being that physicians are some of the highest earners they in turn pay some of the highest taxes. I’ve found that this generally means they are paying much higher tax rates than they need to because they have an accountant, an insurance agent, an attorney and sometimes a financial advisor, none of who communicate.

What if your advisor doesn't review your tax returns or your estate plan? How can you be sure these components of your financial plan are being leveraged for your benefit?

To maximize the potential of your tax position you need to work with a planner who works together with all your financial professionals to get the greatest amount of efficiency.

Regards,

Brandon Archibald, The Ivy League Advisory Group, LLC --- Author

Facebook, LinkedIn, Youtube

P.S. You can also obtain other valuable resources here: www.TheIvyAG.com

P.S.S. To learn 10 ways to better leverage your financial planning, obtain your own FREE copy of my report “Exclusively for Physicians: The Ultimate Strategy for Keeping More of What You Earn” Simply send a request to BArchibald@theivyag.com

All written content is for information purposes only.  It is not intended to provide any tax or legal advice or provide the basis for any financial decisions.  Opinions expressed herein are solely those of “The Ivy League Advisory Group, LLC”, and our editorial staff.  Material presented is believed to be from reliable sources; however, we make no representations as to its accuracy or completeness.  All information and ideas should be discussed in detail with your individual adviser or qualified professional before making any financial decisions.

* 2014 AMA Insurance Agency Report on Employed Physicians' Retirement Preparedness

What are bank CD's paying?

What Are Bank CD's Paying?

How much are CD’s paying? Believe it or not, today’s average CD rates are 0.28%!

Without a doubt, investors are looking for safe places to earn money. Wild swings in the global equity markets are most likely here to stay.

In the eighties and early nineties banks paid a respectable amount of interest. Safe savings rates have declined ever since. By keeping interest rates low, the federal reserve drove investors to look elsewhere for higher rates of return.

That isn’t always a conservative move which is why so much money stays in traditionally ‘safe’ savings vehicles.

But can we call the bank a ‘safe’ savings vehicle?

What if it cost you money to save your money in the bank? Would you be comfortable with that?

If you remember that taxes must be paid on interest you make from bank accounts and the rising cost of inflation against our dollar, your bank CD’s are yielding a negative return. In essence we would be paying the bank to hold onto our money.

If you're looking for alternatives that are sensitive to your conservative needs and sensitive to your approach to investing consider a brief conversation where we can share some strategies that are available and may be beneficial for you.

Regards,

Brandon Archibald, The Ivy League Advisory Group, LLC --- Author

Facebook, LinkedIn, Youtube

P.S. If you are weighing your options and are looking for a second opinion, schedule 9 minutes here at no cost or obligation to discuss the potential pro's and con's of paying off your mortgage.

P.P.S. Visit our website here to download a free copy of my report on ''Underutilized Income Shelters"

All written content is for information purposes only.  It is not intended to provide any tax or legal advice or provide the basis for any financial decisions.  Opinions expressed herein are solely those of “The Ivy League Advisory Group, LLC”, and our editorial staff.  Material presented is believed to be from reliable sources; however, we make no representations as to its accuracy or completeness.  All information and ideas should be discussed in detail with your individual adviser or qualified professional before making any financial decisions.