COVID has affected physicians in every way possible, including financially. While many physicians continue to serve on the frontlines, many were also forced to cancel surgeries, limit in person appointments, and some were reassigned altogether. For some physicians, these changes have had a dramatic effect on income, resulting in uncertainty and instability when it comes to financial planning. To ensure you are adequately prepared for whatever lies ahead, this would be a good time to revisit your financial plan and put new strategies in place. If you need a trusted advisor to help you financially plan your future, feel free to contact one of our experts here today!
Start by reviewing your annual cash flow plan. If there’s been substantial changes to cash inflows and outflows, making adjustments will help to provide a more accurate forecast for the year ahead. Chances are, your personal expenses have also been affected by the pandemic. You may notice that you have reduced spending in some areas– particularly those affected by COVID such as travel, leisure and recreational activities. There may also be areas where you have increased spending- perhaps home improvements, private child care, etc. With this in mind, it would be a good time to rework your budget to account for these changes so that you can reallocate funds accordingly. Furthermore, if you have investment accounts that operate under pre-authorized contributions, you may want to consider either halting or deferring these payments if necessary. Additionally, if you own your own practice, it might be worth exploring your eligibility for government support, as there are still many benefits in place to help pull businesses through these tough times.
While it feels like we may finally be nearing the light at the end of the tunnel, it’s hard to know exactly when, if ever, life will resume to the way it was before. The best thing a medical professional can do is work with a financial advisor to create a financial plan that ensures they are readily prepared for any emergency situation, and any uncertainty that life throws at them.
Reach out to one of our advisors to answer more questions on financial planning during COVID here