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How Doctor’s Can Get an Edge in Financial Planning

A doctor with a practice has an atypical learning and earning curve. Their learning takes longer than others, and the earnings take time to peak tending to be lumpy. Expenses tend to be lump too, necessitating a financial plan.

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Why Financial Plans For Doctors Are Different

While most of the doctors have financial goals which are similar to others such as child education, marriage, retirement etc, almost all doctors wish to set up their clinics at some point in time in their lives.

Also profession in medicine requires long training period. An individual is nearing to 30’s when he becomes a Doctor and is ready to earn. Since their earning cycle is different from most of the other professions, financial planning for doctors differs from others.

Since doctors start earning a steady income later than others, have hectic work schedules and do not have much time to devote to money matters, it is important to prepare financial plan for financial future.

6 Additional Financial Goals for Doctors

Health Insurance

A medical professional is exposed to various diseases and often work in environments that pose risk of infection. Hence a comprehensive Health Insurance Plan and Critical Illness cover is required.

Indemnity Cover

Doctors are also at high risk for financial liabilities and  require special protection against claims for negligence, mistakes, or malpractices. This requires a professional indemnity policy.

Loan Repayments

Medical education is costly leaving a newly minted doctor with a huge education loan. A financial plan ensures that their debts are paid on time.

Expenses For Clinic

Doctors wishing to set up their own clinic need huge expenses for infrastructure and equipments. A financial plan will ensure that meet this aspiration realistically.

Skill Upgrade

The medical profession is one of the most dynamic. Successful doctors plan their finances to educate themselves and upgrade their skills continuously.

Wealth Management

Doctors in the age group of 45+ who have established themselves need a wealth plan more than a financial plan. An unbiased advisor with a 0% commission model will help here.

Conclusion

Because they have limited time to gain expertise in investments, doctors are targets for commission based distributors to increase their sales. Often mis-selling happens and closed-ended funds, NFOs, ULIPs etc are pushed.

The value derived in terms of an actionable financial plan puts the doctor in full control of their finances, with the comfort that the advice is unbiased and of the highest order.

Please consult a SEBI Registered Investment Advisor because this assures you of high-quality service with a clean model, compared to commission agents.

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