7 reasons why doctors need a financial advisor

If you’re a doctor, or work in the medical industry, professional guidance can help you turn your hard-earned income into your dream financial future. Financial planners can help medical practitioners like you realise your potential and reach your goals. We break down seven reasons why doctors need a financial advisor.


1. You’ll learn to budget like a boss


Your days of student life may be well behind you, but that doesn’t mean you shouldn’t stick to a budget. A financial advisor can help you create a budget that helps you achieve your goals. They’ll take a look at your finances and identify opportunities to save money and manage your debt.


As part of your budget, let’s make a quick but important distinction between ‘good’ and ‘bad’ debt. Some debts that deprecate in value, such as car loans, do not build your wealth and can be detrimental to reaching your goals. On the other hand, good debt (e.g. an investment) has the potential to increase in value or generate income over time.


A financial advisor can help you find diverse investments to grow your wealth over time. They can help you stamp out your bad debts faster (e.g. credit cards) and reduce your interest payments.


Looking to the future, your financial plan will factor in your income and expenses and how to better manage your money to get where you need to be.


2. You can grow your money with an investment plan


Are you an investing beginner? Or do you have an appetite for risk and reward? No matter where you sit on the scale, there’s an investment strategy that can boost your financial position. As a doctor, you may be keen to invest in a medical practice, your practice’s premises or your home. Or perhaps you’re looking to get into med-tech shares or the index funds game. No matter what your goals are, your financial advisor can help you weigh up your options for your budget, preferences and the economic climate. 



3. You can organise a loan or finance without the headache


Borrowing money can be a real nightmare without the right guidance. Whether you need funds for a home, or for your clinic, a financial adviser makes organising and managing loans much breezier. This is important stuff for doctors who are short on time or inexperienced in debt management. 


They can break down the ins and outs of how investing works and provide tailored guidance on your best options. Your financial advisor can act as a broker and take on the more stress-inducing elements of loans or finance. Not to mention, they can manage all the paperwork for you!




4. You can get an insurance plan to protect your assets


Whether you’re single, married or have a family, asset protection is important. A financial advisor can help you create an insurance plan that protects you against losses if you find yourself unable to work.


Doctors may need these insurance policies: 

·      Life insurance

·      Car insurance

·      Income protection insurance

·      Home and contents insurance

·      Trauma insurance

·      Total and permanent disability insurance

·      Business insurance



A financial advisor can help you navigate through your policy options and get the best deal for your situation.


5. You can manage your taxes like a pro


Taxes are a part of life, but that doesn’t mean you can’t make them work for you. As a busy doctor, taxes may fall at the end of a long list of priorities. But did you know you can legally reduce your tax liabilities and save money?


A financial adviser can help you structure your affairs using a range of strategies, including deductions, exemptions and structures, such as family trusts.


They’ll help you consider:


·      Income tax

·      Goods and services tax

·      Fringe benefits tax

·      Payroll tax

·      Capital gains tax

·      Company tax.



6. They teach you how to structure your assets


Estate planning helps you structure your assets for when you pass on. It can include:


·      Developing a strategy for your assets

·      Preparing a valid will

·      Appointing someone to administer your deceased estate

·      Establishing a trust for beneficiaries

·      Creating a death benefit nomination for your super and benefits

·      Keeping a log of capital gains tax assets.


These are mega important decisions at any point of your life – but especially if you have a family.



7. They help you plan your dream retirement


You may be many years off hanging up your stethoscope and starting retirement. No matter where you are in your career journey, a solid retirement plan is essential.


You might ask yourself:

·      When can I retire?

·      How much money do I need for a comfortable retirement?

·      What goals do I have for retirement?


A financial advisor can work with you to achieve your dream retirement plan. This may include taking on super strategies, such as transitioning into retirement or salary sacrifice.



Are you ready to take your finances to the next level? MW Wealth team of experienced financial advisors have a wealth of experience with doctors and medical practitioners.