As a doctor or physician, you spend most of your valuable time caring for others. You are only left with little or rather NO time to manage your finances. To do this job more efficiently for the doctors, there are a lot of fund advisors or wealth managers who are available. Wealth management for physicians and medical professionals include – investment management, insurance management, related financial advices and life planning.
Managing your finance is not as complicated as it might seem. Read on to find out the nine common mistakes made by most doctors, physicians and dentists for financial planning.
1. No set targets: Marriage, child’s education, and retirement so on and so forth. Wants are nearly endless as a human being. But what is required to have all of these is a stable and wise financial planning. The major pitfall for most doctors is the failure to set the desired targets. Set your financial targets. There are two types of target: short term and the long term targets. Define each of them clearly and write them down.
2. Not defined time lines: Some doctors and physicians set financial targets for themselves, which is very good, but setting a defined, realistic timeline for achieving these targets is also equally important. Set some long term goals such as buying a home or saving for your retirement. Also set some short term goals such as paying off the debts incurred in setting up your clinic or buying a motor vehicle. If you desire to have your own hospital, list that down as well. No goal is unachievable. This will help you know the exact amount that you expect as your return on investment.
3. Lack of professional help: Most doctors and physicians don’t have enough time to manage the finances. But there are a whole lot of fund advisors and wealth management firms available. It is required to take professional help. Take advantage of professional fund advisors while accessing your risk potential. Take customized advices from them about your cash flows and invest accordingly. Professional help takes you a long way in achieving your financial targets.
4. Lack of investments: You would want your money to work as diligently as you are! You should not let your money to idle away. Make systematic investment. You can invest in stocks, bonds, mutual funds or real estate. Identify your risk potential and invest accordingly.
5. Lack of insurance: You care for a whole lot of your patience’s health. Keep up the same attitude while caring for your health as well. Be proactive to get information about various types of insurances- health, disability and life. This long term care protects you and your family against major risks that physicians face. Work with expert fund advisors to get details about the insurance policies that are best suited for you.
6. Life planning! What is it? As a physician or doctor, you would have deeper aspirations about life. While planning for your future, make sure that you keep these aspirations in mind. If you are going for professional help through fund advisors, make sure that you convey your deeper aspirations clearly to them. This can make a significant difference in your life.
7. Choice of bad fund advisors: Some advisors charge exuberantly. You need to be cognizant of what you are paying versus the services that are being offered. There could be fund advisors who are not registered. Beware! Make sure that you check the background of the fund advisors with whom you are willing to entrust your entire financial information. Also make sure that your fund advisor is registered and certified.
8. Not being proactive: As physicians and doctors, you spend all your energy and time in caring for your patients. But when it comes to being proactive about investments, you take a step back. This is a major pitfall. Make sure that you take the same interest in investing as you take to look after your patients.
9. Lack of integrated solution: As doctors you do not have much time to look into each and every area of fund management. It is best to look for fund advisors who give you an integrated solution. These fund advisors (http://www.wisegeek.com/what-do-index-fund-advisors-do.htm) who provide integrated solution take care of insurance management, asset management, investment and maintaining your portfolio. This integrated solution works for all.
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