There are few professions that lead to the financial complexity that physicians face. On one hand, you’re likely making more money than a lot of other people. You also face a unique level of liability and debt. To successfully manage your wealth, you need wealth management strategies that work for physicians. Here are some tips that you can consider.
Evaluate Interest Rates on Student Loans
If you attended medical school and subsequent certification programs, the odds are high that you have some student loan debt that you are responsible for paying. In many cases, student loans have fair rates and it’s not worth prioritizing paying them off in full over other debts. However, if your student loans have high monthly payments or interest rates, it may make sense to devise a payoff schedule to get rid of the loans as soon as possible. The money that you’ll free up might be able to be better invested.
Invest in Quality Malpractice Insurance
In a highly litigious world, doctors are especially vulnerable to malpractice lawsuits. Being on the wrong end of one of these lawsuits can jeopardize your wealth, your career, and your family’s financial future. Having a solid malpractice insurance policy is a necessity. Make it a priority to review your malpractice insurance each year to ensure that it’s a great plan that offers a tremendous amount of protection. If you feel that the policy doesn’t offer enough, find a new policy that provides better coverage.
Remember Tax Deductions
Depending on how your practice is set up, you may work for an organization such as a hospital, work in a partnership, or have your own business. There are certain tax deductions that you may be eligible for, depending on these factors. If you’re in charge and own your practice, you can write off business expenses that can help lower your tax obligations. Many physicians overlook ongoing training and travel expenses that could help them have more money free to invest in their financial futures.
Consider Retirement Plans
It’s never too early to plan your retirement, especially since working in the medical industry is particularly stressful. Make it a regular goal to invest a certain percentage of your income toward retirement each month and consider investing the money you were putting toward your student loans once they’re paid off. Having expensive student loans to pay off may delay what you’re able to put toward retirement, so it’s especially important to make it a priority as soon as possible.
Benefit from Time
Spending more years in school, completing your undergraduate degree and medical school, deprived you of the time you could have been investing. After all, the longer that investments have time to sit and grow, the better. Because most physicians get started with financial investments later, it’s important to get started putting more money away sooner.
As a physician, you have the opportunity to use your income to improve your financial situation for life if you can develop healthy financial habits, eliminate student loan debt, and put more toward investments. To get help with long-term investments, contact Corda Management. We’re happy to look at your unique financial situation and develop strategies to help your finances perform well.