5 Financial Tips for Doctors
As a doctor your focus is taking care of your patients. At Rosen Group Private Wealth Management our focus is making sure you have the knowledge and the tools necessary to take care of your financial portfolio.
Here are 5 powerful financial care tips curated with you in mind:
1. Write Down Your Aspirations
We all have a picture in our minds of what it means to achieve financial success. But research shows that the simple act of writing down one’s goals is associated with greater success in achieving them.
Your list doesn’t need to be long or complicated—write down the first things that come to your mind when picturing financial success for 2022: paying off college tuition costs, saving for a vacation home, splurging on a new toy you’ve had your eye on.
2. Maintain Pre-Authorized Contributions
Setting up an automatic contribution from your bank account to your investment account is an easy, uncomplicated way to build your wealth. Pre-authorized contributions (PAC) allow your investment vehicle to expand with minimal effort—you simply decide the amount and frequency with which you want a PAC to be made.
3. Develop a Budget
Events over the last two years have resulted in higher costs across the board. Now more than ever, creating a budget is an important way to stay ahead of the cost curve. Whether you use a fancy budgeting app, create your own spreadsheet, or stick to simple lists, maintaining a visual of your expenditures is a powerful way to ensure you are on track with your financial goals.
4. Tax Advantage of an IPP or CIRP
An Individual Pension Plan (IPP) is a form of retirement account that can be set up by incorporated professionals, such as doctors. While it is similar to an RRSP, there are some significant differences.
There are a number of mechanisms available for individuals to save in a tax-efficient manner for their retirement – but, for incorporated professionals, retirement benefits can be tied into their corporation, therefore the corporate insured retirement program (CIRP) can be an effective strategy for incorporated professionals to receive retirement benefits through their corporately owned permanent life insurance policy.
5. Don’t Forget Your Will
For doctors, an up-to-date will is particularly important because an active medical practice is deemed independent from one’s estate, requiring a separate set of administrative and financial decisions and actions. Additionally, a current will ensures that the wealth you have worked hard for will be dispersed exactly as you desire.