Knowing and understanding the basics of financial planning can provide clear direction and help you prepare a solid financial plan that will improve your chances of meeting your life goals. As physicians, often with lots of debt and high earning potential, it is important that we make the right choices with our money. Let’s discuss the top 3 financial planning mistakes physicians make and how you can avoid them.
- Not having a financial plan.
The old adage goes, “If you fail to plan, you plan to fail.” Financial planning involves engaging a broad view of one’s financial affairs looking over many areas of wealth supervision and then running through a step-by-step process to solve financial problems and achieve financial goals. If you do not have a budget, estate plan or strategy in place for financial security during retirement, you may find yourself in a less than desirable situation in the long run.
- Not checking on your money.
Setting financial goals is important and every person should seek to make plans and prepare. However, the key to financial planning is not the planning itself, but the starting and the maintaining. So many people make the grave error of blindly depositing their money into a retirement account without regularly assessing its performance. It is important that you regularly check your retirement account funds and make the appropriate adjustments accordingly to achieve optimal financial success.
- Not having a tax strategy.
It is imperative that you have a tax strategy that helps reduce your tax burden so that you keep more of your hard-earned money. Start thinking about your needs and your financial future, making financial plans and setting up a tax strategy will provide you with a clear and understandable plan for your future.
In order to avoid these mistakes it is imperative to work with a qualified certified financial planner. Harvey Maclin, Vice President of Financial Planning and Retirement Services of Commonwealth of Atlanta, specializes in helping physicians develop a comprehensive financial strategy. Contact him at email@example.com to schedule a complimentary 15 min consultation.