A Doctor’s Financial Advice

Be Frugal and Save Early

Compared to other professionals, doctors invest a lot many years in their education. Initial earning years

come with huge education loan repayment and practice set-up cost. They start earning properly only from

early to mid-30s.This deprives them early mover advantage in terms of investments for their future goals.

Power of compounding does magic only on long run.

Monthly Contribution 25,000.00

Years/Int 6% 10% 12% 15% 18%

5 17,45,600 19,29,294 20,27,590 21,83,552 23,50,234

10 40,81,607 50,36,44, 56,00,897 65,75,455 77,27,001

15 72,07,712 1,00,40,530 1,18,98,285 1,54,09,140 2,00,27,742

20 1,13,91,144 1,80,99,668 2,29,96,434 3,31,76,836 4,81,68,857

25 1,69,89,521 3,10,78,990 4,25,55,164 6,89,14,019 11,25,48,910

30 2,44,81,412 5,19,82,318 7,70,24,330 14,07,94,260 25,98,34,876

Financial advice for Doctors is quite different from others as doctors’ financial profiles are different. Most

of the Doctors work part-time or set-up practice while perusing Post Graduation and more. This is the time

you should be frugal. Spend for what is necessary. Millionaires are far more frugal than what you or

society thinks. You could hear frugality in the words like Cost control or cost cutting in corporate world.

First things First

It’s imperative to start with protection. Take optimal Life & Health Insurance. As an independent practicing

Doctor you should take maximum Professional liability insurance along with other standard liability covers

for your assets and loans. Chart down your future needs & goals with clear priorities. Hire fee only

financial planner for doctors to make a plan. Understand your risk-profile and be focused and disciplined

towards your goal. Periodically review your progress.

Concentrate on High Net-Worth

Doctors are, in general, very poor at converting a high income into a high Net Worth. When it comes to

personal finance, some things matter more than others. A firm foundation for your finances with a steady

and increasing stream of income could be converted into solid Net worth by proven strategies like buying

more appreciating assets, investing in tax optimized instruments, going for positive leveraging, avoid

trading/gambling, minimizing debts etc.

Wealth Traits Financial Planners, No. 9, Maven Projects Centre,

Dr. Thirumoorthy Nagar 3rd Sreet, Nungambakkam,

Chennai - 600 034.

info@wealthtraits.com

www.wealthtraits.com