By Chris J. Roe, CPA, PFS
Over the years, Rx Wealth has advised many professionals and business owners who have built a life of wealth, and a major contributor was their ability to earn and invest their money over a long time period.
As a newly practicing physician, you will earn significant money affording you a comfortable lifestyle. But remember, you’re starting later in the game than other professions. Thus, it is imperative that you focus more intently on building wealth. Before you know it, you will be approaching retirement.
Here are 11 recommendations to help you stay the course.
Tip #1: Take Care of Your Health
Your health is your key to a successful, rewarding career and life. Take care of yourself first.
Tip #2: Save Money for Retirement Stat
You will need to live below your income level, invest for the long term, and control underlying investment costs while setting realistic expectations and following through on execution. Retirement sneaks up on you quicker than you think. In our experience, it is the follow-through on execution that busy professionals fail to do.
Tip #3: Access Coverage for Risks
This means having enough term life insurance to provide for your family in the event of your premature death. Also, ensure you have adequate amounts of disability, malpractice, and property and casualty insurance to protect you and your family from natural disasters, accidents, and litigation.
Tip #4: Protect Yourself From Creditors
Own your assets in a way that will protect them from future creditors. Also, if you own your own practice, make sure you are protecting the assets of the practice, such as equipment and receivables, from potential creditors.
Tip #5: Update Your Estate Plan
Maintain up-to-date wills, powers of attorney, and other important estate documents so that your affairs are handled appropriately if you become incapacitated or pass away.
Tip #6: Factor in Future Inheritances
If you are expecting a future inheritance, you should be having conversations with your parents about the proper way for them to leave you an inheritance so that it is outside the reach of divorcing spouses or creditors.
Tip #7: Consider a Pre-nuptial Agreement
One of the most traumatic and wealth-destroying events in a physician’s life is divorce. Over the years, I have seen many aging physicians continue to work solely to try and recover from a devastating divorce. To avoid the pain, simply get a pre-nuptial agreement before getting married.
Tip #8: Establish a Professional Team
You do not know everything; thus, you should hire a good financial advisor who works and coordinates your financial needs with a qualified CPA, lawyer, and property and casualty insurance broker. Remember, not all professionals act in your best interests, so be careful and diligent with your selection.
Tip #9: Take Colleague Advice With a Grain of Salt
Colleagues are a good source of guidance but beware not to follow the advice of your colleagues blindly. Use them as a source of information, but do your own investigation as your situation is unlike any other.
Tip #10: Monitor Your Finances
While undoubtedly you will be very busy with your career and life’s other demands, you need to take some time to meet regularly with your professional team and focus on your family’s finances.
Tip #11: Build a Support System
Achieving success and happiness is very dependent on the support system you build around you. Make sure you get along with your spouse, children, friends, and work colleagues. These people are the most important in your life and provide you with the needed structure and support to achieve success.
These recommendations will be a solid basis to allow you to enjoy your life and career while you build wealth. Whether you are beginning your journey as a physician or are already on it, Rx Wealth is here to help you reach your destination.
Rx Wealth Advisors is a physician-focused financial advisory firm. Their primary focus is to help medical doctors maximize their earnings, keep more money in their pockets, and cultivate wealth so they can live the life they’ve earned and deserve. Rx Wealth can be reached at 412-227-9007, via email at email@example.com, or on the web at rxwealthadvisors.com.
The situations or opinions mentioned in this article are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investments or strategies may be appropriate for you, consult your financial advisor prior to investing.