Why Doctors Should have a Financial Plan?

financial planning for doctors

A right financial planner is the doctor of doctors!

Doctor’s duty is to understand the patient’s problems, diagnose it and then provide the right medication or solution to them. But when it comes to their own financial planning, do doctors go to a financial planner or a financial doctor? I randomly spoke to my doctors & their friends, outcome was startling… as none of them have a financial planner.

It’s so amazing that when we have a health issue, we or for that matter anyone, will first seek doctors help, whereas the same doctor is seeking family & friend’s guidance first. Well the answer to same is the industry size, as there are not too many advisors available. Banks, brokers & individual agents are not the right people as they are selling investment products & not financial plan.

Doctors are respected and medical is considered as one of the best and noblest profession but they face one big problem when it comes to finance. The problem is due to their profession. It is so demanding and involves so much of their time and efforts that they are left with no time for other things that includes gaining knowledge as well as managing their finances. Medical practitioners start earning late in their life, say when they are almost 30. The cost of education is also so high that their initial paychecks are gone for repaying their education loan.

Doctors have professional goals that includes opening their own clinic/ hospital or purchasing/ upgrading equipment’s for their clinic. They also have their personal goals like vacation trips with family, purchasing a house and retirement planning to be done. In spite of having a high income, doctors should have liquidity also in form of contingency funds.

A financial planner helps guide you to make the right investment, so all the goals can be fulfilled.

One huge mistake which almost majority of doctors make is resort to bank’s relationship managers for their financial aid. One thing which doctors forget is that not all relationship managers have taken their Hippocratic oath. They only want to boost their sales and accomplish the target assigned to them thereby helping themselves & not you (doctors).

At Moneyfrog.in we are uniquely positioned, as we don’t sell Mutual Funds or investment products First… but make you (customers) understand your data, need & requirements, by asking you multiple questions. Post that, we prepare a blue print on various asset allocation models, based on your life goals & risk, sounds complicated… that’s where our experience & expertise help.

Article is curated by Mr. Manoj Chahar


Disclaimer: Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing. Past performance is not indicative of future returns. Please consider your specific investment requirements before choosing a fund, or designing a portfolio that suits your needs.

Pooja Vorani

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