There are six common mistakes that doctors make that are negatively impacting their financial future and are hurting them both now and when they retire.
Over the next six weeks we are going to look deeper into each mistake. Last week we looked at 2. Non-existent Tax Planning
This week: 3. Unplanned Superannuation
The third most common financial mistake of our doctors is Unplanned Superannuation. The most common initial feedback we get from our doctors regarding super is that they often don’t even know who their super is with.
Secondly, they have no idea within $20,000 to $50,000 of how much they currently have in superannuation.
Thirdly, they have no idea of how the amounts or types of cover for insurance purposes that are within super.
And finally, they don’t really know their asset allocation or how much are returns on their super.
The main excuse for this is that a lot of our doctors are saying they are in their late 30’s or early 40’s and retirement of 20 plus years away seems like a long way away, so frankly, it’s just all too hard. If retirement feels like it’s so far in the future then it’s easy to see why they think worrying about super now is unnecessary. Unfortunately this is clearly a very poor decision because it is necessary and super is the key plank of what’s going to sustain people financially in their future.
The second key thing about unplanned superannuation is it is often structured incorrectly. The asset allocation is poorly thought through, and the amount of money that is actually going into super, is seldom adjusted to reflect their improved cash flow as a doctor’s income increase. And, as a result, many of our doctors if they hadn’t met us frankly, would have insufficient income stream from their super balances to have a stress free retirement.
It’s easy to see why 60% of doctors delay retirement for cash reasons. If you don’t want to be part of that number, contact MedCapital today HERE and start on the path to getting your wealth sorted.