Financial Planning for Doctors

1. Financial Planning for Doctors Financial planning can help you achieve your financial goals. It’s not just numbers like you need to save this much (X) amount at this rate (Y%) of return for these many number of years (Z). Simple financial calculator which is available across the websites will through the numbers. Professional financial plan is a process. Broadly it deals with cash flow planning, Risk analysis and insurance planning, debt management, wealth planning, tax planning, retirement planning and estate planning. Financial plan clarifies what is possible and what is not and lays down a clear path with recommendations, strategies to reach your financial destination. Financial planner for physicians will look deeper into cash flow, assets & liabilities, financial needs and goals, risk involved and your risk profile, potential financial barriers/liability and insurance options, time left to the goal and assume inflation, rate of return based on history and forward outlook. There are few basic advices given like;  Have adequate life, health and asset protection insurance.  Have a budget and live within your means  Start investing early to reap maximum advantage out of time ( power of compounding)  Spread your risk. Invest in varied asset classes to avoid concentrated risk  Start investing for your retirement at the earliest  Have a will in Place It’s no different for doctors as well. But doctors come to the league little late because of prolonged study years. More over doctor profession comes with its own opportunities and challenges. Some of them are:  Hefty education loan  Confusing yet critical decision points like; choosing Specialization, employment vs active practice, place of practice, structure of the business, retirement options, clinic Vs home priority and much more  Pressing Mid-age life expenses and financial responsibility starts immediately  Sudden, Scalable and progressive income stream  Huge cost of own practice set- up cost  Possible Professional Liability litigation and other business risks  Unique retirement options for self-practicing doctors like CAs & Lawyers Financial planning for doctors is akin to financial planning for SME business owner. Personal and professional finances have to be balanced out. All financial decisions are interlinked and have effects accordingly. Certified Financial Planner (CFP) is known to do comprehensive financial planning. Engage a CFP certified fiduciary planner for creating your financial plan. Wealth Traits Financial Planners, No. 9, Maven Projects Centre, Dr. Thirumoorthy Nagar 3rd Sreet, Nungambakkam, Chennai - 600 034 info@wealthtraits.com www.wealthtraits.com