A Doctor’s Financial Advisor

1. A Doctor’s Financial Advice “No one teaches you how to think about money in medical school or residency. Yet, from the moment you start practicing, you must think about it.” — Atul Gawande Here's what to Do Now if you are stepping your practice  Write down your business plan  Protect against financial calamity by insuring you, your asset and practice  Create an Emergency corpus  Chart down your Personal financial consultant for doctors  Have a budget and start squeezing every paisa Don’t buy House, Car and high end gadget immediately  Settle high interest loan like student loan, Consumer loans before investing  Avoid holding multiple credit cards and unsecured loans Here's what to Do Now if you have established your practice  Protect your practice by taking huge Professional Indemnity Policy & general liability policy. If you are part of financial consultant for physicians in other hospital make sure the same.  Insure yourself, your assets and family with appropriate Life, Health and Liability covers  Invest on Customer facilities and care  Make sure your money working for you. Keep general float in liquid funds.  Own the hospital property  Keep sufficient buffer for emergencies  Do not mix personal and business cash flow  Leverage your hospital set up with other doctors  Have a written plan for your personal financial future  Execute the plan at once  Do not keep investing in Real estate. Diversify in different asset classes.  Concentrate on Post-tax yield and Net-worth without compromising your risk profile  Keep sufficient investment in financial assets, which are mostly highly regulated and transparent.  Tax efficient investments and strategies are highly solicited, not on tax evasion. Here's what to Do Now if you are nearing retirement  Plan to finish all debts before quit practicing  Make sure you are covered with long term care and health policies in place. You may not get one, if you are not healthy and fit in later years  Decide on estate planning and have a basic will  You need to decide on exit strategy – it could be selling hospital as such, sell the property as real estate or capitalizing the practice's goodwill by fronting a mentored junior doctor. Last option is very lucrative and financially good decision if you are one among who’s who doctors in your area.  If you wish to practice to your children or mentored junior you need to start the process 3-5 years well in advance. You can be identified as senior consultant. Start visiting places and indulging on activities which you are planning to do post retirement. This will make the transition smoother. Wealth Traits Financial Planners, No. 9, Maven Projects Centre, Dr. Thirumoorthy Nagar 3rd Sreet, Nungambakkam, Chennai - 600 034. info@wealthtraits.com / www.wealthtraits.com