Medical professionals are intelligent, well-educated individuals who are capable of comprehending difficult situations and acting decisively in their domains. With focuses lying elsewhere, from the educational process, to running practices, and taking care of the lives of many, physicians need financial support in order to operate effectively across all avenues.

Although financial planning isn’t quite open-heart surgery or detecting a rare genetic condition, it’s fundamental for the success of any medical professional. That said, we’ve got 10 reasons why every physician needs a great financial planner.

1. Doctors are in high demand. They can work up to 50 hours every week on average. There isn’t enough time to undertake economic research on investments, let alone the type of long-term planning that produces the best outcomes.

2. Doctors who collaborate with a financial planner can delegate responsibility to experienced financial experts, complete with a quarterback who can assist on calling the shots. Even if you have the time, it’s hard for one person to keep up with all of the changes in the markets, taxes, health-care laws, trust and estate planning, and insurance. That’s why, like the finest physicians, the greatest planners collaborate with experts to address any issues a client may have.

3. Doctors are aware of the need for planning. They understand that, despite the analysis, what’s recommended for one patient may be quite different for another with comparable goals, concerns, and resources. Authentic financial planning, on the other hand, is more than just a spreadsheet. Sure, anyone with a basic understanding of accounting can put figures on a computer and call it a day. However, not everyone can make the right call on safeguarding assets, or ensuring a strong foundation through customized planning.

4. Many expenditures that ordinary people don’t have are borne by doctors. This includes malpractice insurance, family members that may rely on them, and an upmarket lifestyle. The importance of budgeting for doctors cannot be overstated.

5. Doctors are frequently in debt while pursuing their medical degree. It takes years of discipline and planning to manage and pay off that debt. It might be difficult to understand the numerous paydown alternatives, which is where a planner can come in to build a custom system for paying off debts.

6. Doctors do receive advice from their peers on occasion. Given that most physicians don’t have the time to do their own research, this might result in the blind guiding the blind. A good financial planner can provide a strong vision for the future, which is where success in wealth management begins.

7. Doctors require tax-advantaged investments in order to sustain their lifestyle in later years. Sure, anyone can handle their money by pressing a button, but taxes, even for those who have a solid understanding of the industry, may be difficult. Working with a good financial advisor will help keep any and all finances in order without the added pressure.

8. Doctors, like everyone else, require asset protection, and not simply because a patient may dispute. Auto, homeowners, umbrella liability, and malpractice insurance should all be sufficient.

9. Doctors, like anyone with a high salary, are susceptible to shady management, overconfidence, and investment gimmicks. It’s concerning to have a lot of cash flow but no expertise investing and no one to help you. Having a financial planner who acts as a trusted fiduciary, the highest ethical standard in the industry can provide a sense of ease.

10. Physicians, like almost all other professionals, can benefit from a second opinion on their money. Having another pair of eyes on accounts and assets can boost confidence in an existing strategy and identify any blind spots. Having a financial planner to bounce ideas off can even help improve financial literacy, making them an extremely valuable addition to your professional, and even personal team!

A financial team that specializes in dealing with physicians’ finances can help build wealth, decrease debt, achieve specific objectives, and realize aspirations. In the long run, working with a great financial planner opens up the possibility to focus on benefiting the lives of many, rather than worrying about proper financial planning for the future.

It’s never too late to improve your financial situation. Contact Medtax.ca today here and let’s start planning together!

About the Author: Alex Powell

CPA CA, Director

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