Financial advice for doctors involves protecting assets from malpractice suits, dealing with climbing income taxes and investing for a solid and healthy fiscal future. While your professional life is already complex and involved enough, take the extra time and make a commitment to yourself and your financial health. There are financial advisors who specialize in dealing with kids financial consulting, college students, couples and even doctors and their specific circumstances.
Financial advisors may combine professions, dove-tailing Certified Professional Accountant, attorney, National Association of Stock Dealers with malpractice insurance credentials. These professionals, like doctors, have many special areas in which they are trained so that they may meet the specific needs of the population that they serve. You will probably want to start seeking financial advice for doctors early on in your career, well before the ink dries on your medical license.
Finding the right financial advice for doctors can involve finding the right credentials as a financial advisor, in addition to professional knowledge, as was already covered here. Though, you may want to find a professional who serves your kind of doctors. For instance, while obstetricians might deal with one set of circumstances, such as a higher rate of one particular kind of malpractice lawsuit, you may not need the same kind of malpractice insurance.
Though, you may have special needs to invest in equipment and machines that help you offer the best medial service that is possible. Likewise, if you really have no equipment but an office, and are a psychiatrist, you may deal with a different kind of malpractice. There is differing financial advice for doctors who practice different areas of medicine. So, the financial advice for doctors offered by your old medical school buddy may not work for you, because you are in two different fields of medicine, and you may have different loads of education loans from college onward.
More likely than not, even if you had a comfortable upbringing, starting out as a doctor, you may have a negative net worth, given all the loans and costs to get into your field. As your income rises, though, the math changes drastically in your favor. And, it is important to find a good professional who provides financial advice for doctors for hopefully a good deal of your career.
It is best to assess your needs first and foremost. You need a professional who can offer legitimate tax advice who is a professional. You may need someone who either has or knows of someone who is a lawyer specializing in your practice type. In addition, you may want to find a professional who has taken their own oath: the fiduciary oath. This indicates a professional who promises to only have your financial interest in mind when they work for you.
They typically are fee-only; that is, they charge you per hour of advice or per project, much like a consultant. This runs counter to traditional financial advice for doctors, and everyone else, which used to be solely commission based. Commission is not necessarily bad, but if your advisor needs to eat and support a family, they are more likely than not going to try and sell you whatever will meet their goals first and then dole out advice according to your goals second to that.
Consider asking for references from other doctors who are in the same specialty, dealing with similar issues at present. Maybe your colleague who shares your practice never saw a student loan, because she had a lot of money. Also do ask for the references of potential advisors, to find out if their advice for their clients feels right for you. And, perhaps, that is not your shared situation. Or, maybe your family did not believe in giving you 100% of the money for your higher education and medical school, even if they could.
Add to that that you may be embarking on parenthood, combined with having to consider investments for your retirement, such as your 401k (if you are working for a big corporation) and a Roth IRA, if you are going it more alone. Consider that your advisor will have no emotional bond to your finances, which makes them even more likely to contribute positively to your own financial outcomes. They will help assess your situation against your goals, and their advice, to offer you a plan, or financial advice for doctors.
Financial advice for doctors involves finding a professional who can provide advice for doctors for the lifetime of your career. This involves ensuring they have the special training to work with your specific insurance, legal and accounting needs. Additionally, doctors, like anyone else, need to find a professional with whom they feel comfortable communicating and working . It is your decision, as are all the other complexities. But, obviously you can handle it.
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