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
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
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