Expert financial advice for medical specialists is vital because you face unique challenges and opportunities in your profession. Commonly we see, higher average income levels, business management challenges, tax complexity and unique insurance requirements. Also, because you are time-poor, you require a service that fits with you and that is personalised to what you are trying to achieve.
The key to achieving great life outcomes financially, is to get the balance right between wealth creation and protection strategies. Then tying the strategy to your retirement planning objectives. Financial advice for medical professionals will leverage your position sustainably and keep you on track to achieve your potential.
In this blog we have identified some of the challenges and opportunities we see for non-surgical and surgical medical specialists. Doctors, nurses, and related healthcare professionals. As well as several considerations about quality financial planning advice.
Yield Financial Planning provides financial advice for medical professionals, and we have a deep understanding of the needs of doctors and specialists, including HNWI wealth management.
Financial Advice For Medical Professionals
Specialist Physician (surgical and non-surgical)
As a Specialist Physician you are highly trained and skilled and in high demand. This means you are likely time poor, have higher than average income earning potential and have more complex financial needs than most. Even if it doesn’t necessarily feel like it, finance has more complexity for you. Because of the opportunity your occupation presents and the risks. This is where a high performing financial advice relationship, will help you harness your potential.
To do this, you want to create as much flexibility as you possibly can. For our medical specialist clients, we will regularly consider tax structures to channel income and investments tax effectively. This improves tax outcomes and vitally for medical specialists, improves asset protection. The structures we regularly consider as part of our financial advice for medical professionals include trusts, bucket companies and SMSF.
At Yield, approximately 50% of our top clients are doctors and specialist physicians. One observation from this is that we often see a preference for property, which usually means above average debt levels also. Financial advice for medical professionals must therefore put keen focus on debt reduction.
In general, we find that investing for medical specialists is highly bespoke and needs to be personalised to fit both your lifestyle and the portfolio you already have or plan to acquire. This personalisation must also flow to your personal insurance needs, including consideration for policies that provide protection for your specific professional risk.
Doctors and other healthcare professionals
For General Practitioners, Dentists, Optometrists and Allied Health Professionals, there are strong similarities to medical specialists, but also differences. We regularly see business owners for example, which present a raft of different risks and opportunities. If this is you, then leveraging the tax structures you have in place and helping you to align your business interest with your personal financial planning objectives, will help optimise your entire position.
Retirement strategies, such as using an SMSF to purchase the property you operate from is a common strategy. Owning a clinic property in super can be a great strategy for healthcare professionals, with their own business. Moreover, as a healthcare professional, you could benefit highly from financial advice, including guidance across cash flow management, reducing tax liability, debt management, estate planning and retirement planning.
Registered Nurse (RN) or Nurse Practitioner
If you are a registered nurse, you may be responsible for administration of medication, diagnostic testing, and providing patient support. As a nurse practitioner this may include the ability to diagnose, treat illnesses and prescribe medications. While nurse practitioners may have income levels lower than specialised physicians and doctors, quality financial advice is key to creating ideal financial outcomes. Your plan will include developing wealth creation, debt minimisation strategies and a strong retirement planning approach. Salary packaging advice is important for you also, as you could be eligible to excellent benefits. Salary packaging, may include debt reduction or meals allowance.
Thought should be put into how you structure this, such as whether the debt or insurance you are packaging is non-tax deductible or tax deductible. Appropriate insurance protection that matches the specific risks of your profession is always an important consideration.
Superannuation Financial Advice for Medical Professionals
Currently, the main industry fund for medical professionals is Aware Super. While there are advantages to choosing this fund, there are also various potential shortcomings to keep in mind when deciding whether they are the correct choice for you.
These factors can include limited investment options, inflexible income products and customer service delays, which are of higher concern for time poor Medical Professionals. Depending on your balance and the investment options you choose, there may also be more cost-effective options available. A valuable alternative that many of our medical specialists utilise is a Self-Managed Super Fund (SMSF). SMSF’s afford a raft of benefits including cost management, investment flexibility and tax planning opportunities.
At Yield, we have financial advisers who specialise in SMSF advice. Around 1.1 million Australians are SMSF members, and the average member balance is over $790,000. Opting for a Self Managed Super Fund (SMSF) may be a more desirable option if you want to take control of your super. With the support of financial advice for medical professionals we can assist to identify the most flexible and/or cost-effective avenues.
The best financial plan for you, will be from a trained financial specialist that understands your unique circumstances and needs as a medical professional.
How to Identify The Best Medical Professional Financial Advice
Like finding the best medical advice, you are searching for a financial advisor that is suitably qualified. They will be supported by a team that are used to working with medical professionals also, to ensure you receive a quality service that is consistent and reliable.
Finding the financial planning firm that will deliver this for you can be found on referral of a trusted professional. Such as an Accountant or it can be found with a bit of research. Whether you are seeking advice through referral or looking online, there is a raft of readily accessible information available. You want to make the right choice first time, so its worth the investment upfront.
Online you can establish some connection with the firm you are considering, by reviewing the adviser’s website; bios published on social media like LinkedIn; client feedback on google reviews or a range of others; and finding similar advice situations to your own via case studies.
Case Study Demonstrating Financial Advice for Medical Professional's
A surgeon and her husband who is a lawyer, approached Yield to help them develop their financial plan. Their specific reasons for seeking advice were wealth protection, wealth creation, retirement planning and legacy planning. A high net worth couple already, they had created wealth through their high income and they had made some property investments with mixed success. However they were worried they were not maximising their position and wanted a clarified financial plan for achieving the retirement they desired and to feel confident they were on the right track.
Yield advisers were able to identify several potential risks present within the couple's current financial plan and advise them on ways to overcome these risks and roadblocks. Some of the key benefits that were achieved from their financial plan include that they improved their overall financial position by $781,000 by age 90; a bucket company strategy created a $200,000 tax benefit; they reduced their insurance cost by $60,000 and reduced their ongoing SMSF accounting cost by over $4,000 p.a. Learn more
Yield Financial Planning Provide Expert Financial Advice for Medical Professionals
A financial planning relationship is built over time. It starts with a thorough review of what is important to you; what you are trying to achieve; what your current plan is and your current position. From there your financial adviser can help you realise your full financial potential and secure your retirement nest egg, designed to suit your busy lifestyle. Our financial advisors at Yield will help you develop a focused financial plan and keep you on track, by measuring how you are tracking against your plan at regular intervals and providing proactive advice to make your money work, so you don’t have to. You can get in touch with us today here to start the conversation.