The 6 common financial mistakes doctors are making

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Recently a paediatrician approached MedCapital to review his financial position. When he walked in he told us, “I’m really only here because my friends were so insistent. I’ve got an accountant, a lawyer and a financial planner, so really I think I’m sorted.”

We conducted an analysis of his financial position and structures, and suffice to say he was shocked when we found the cost of a structuring decision made 20 years ago, by that very same accountant he’d referenced, had cost him over $10M in overpaid tax and the earning potential of that over-paid money.

Ten million dollars!

Doctors earn a great income, so why are four out of five currently delaying retirement for financial reasons?

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, leading to insufficient investments, future debt challenges and missed wealth creation opportunities
  • Inadequate or non-existent tax planning, leading to a career of overpaid tax and even potential fines
  • Unplanned superannuation, creating sub-optimal returns, poor structures and insufficient balances when needed as an income stream for a stress-free retirement
  • Incorrect asset and income structures, leading to a lack of protection for major financial assets and higher tax costs (like the paediatrician described above)
  • Sub-optimal debt structure, resulting in excessive, non-deductible, personal debt, lost deductions for your business and a higher tax burden for years to come
  • Insufficient insurance coverage and structure, leading to personal, financial and career risk and major family financial pain and hardship if things go wrong, and in the event of a life payout massive tax bills on receipt and in the future (that can be avoided)

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. That means every doctor is exposed to:

  1. Paying too much tax
  2. Missed investment opportunities
  3. Increased risk and diminished career and retirement cash flow

It is no wonder that 80% of doctors are delaying retirement for financial reasons.

Are you making any of these mistakes? Just as importantly are you even aware if you are making these mistakes or not? If you’re not even aware then you’re in the majority because most doctors don’t prioritise their wealth, choosing to focus on practicing the best medicine they can.

At MedCapital, our team of over 40 professionals share the vision of helping doctors make money worries a thing of the past. We do that by applying our three-step proprietary Exceptional Wealth Model

To help you get started and to ensure you don’t make any of these mistakes in the future, we are offering 240 doctors the chance to have a complementary assessment of their cash flow, risk profile, financial position and structures by one of our specialist Private Wealth Managers. It is absolutely obligation-free, and we’ll identify the risks and mistakes you are making, then provide a roadmap to address them. If you then want us to go ahead and fix these issues, handle your tax and create you a bespoke Exceptional Wealth Plan, then membership is just a $125 per month flat fee (about the cost of one coffee a day).

Now is the time to get your finances right. Don’t wait and end up 20 years down the track and realise you’ve made a $10M mistake.

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