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:
- Lack of a detailed budget
- Inadequate or non-existent tax planning
- Unplanned superannuation
- Incorrect asset and income structures
- Suboptimal debt structure
- Insufficient insurance coverage and structure
These lead to overpaid tax, missed investment opportunities and unacceptable risk.
100% of the doctors who have approached MedCapital were making one or more of these mistakes when they engaged us, and over 80% were making at least four. It is no wonder that 80% of doctors are delaying retirement for financial reasons.
Over the next six weeks we are going to look deeper into each mistake.
First up, Lack of a Detailed Budget:
This is really quite simple, without a budget we have found our doctors have no idea what their incoming and outgoing cash flow is, which often just leads to overspending.
People tend not to restrict spending because doctors generally earn good money, for example there is a difference between buying an expensive pair of shoes or reasonable shoes, which tends to “wasted cash” for want of a better expression.
It also means that people don’t really plan for the future, so credit card debts get out of control and they also just quite simply miss out on investing that cash flow in wealth creating opportunities because they are more focused on the current situation rather than on the future.
Are you making any of these mistakes? Just as importantly are you even aware if you are making these mistakes or not? To receive your complimentary assessment, please just CLICK HERE to enter your details and we’ll take it from there.