The training years are when most Doctors look to get started on asset acquisition both in property and shares. Some areas we commonly provide advice to Doctors in training are laid out below. If you feel like any of the below areas are areas you need some assistance in making a long term strategy, get in touch to organise a cost and obligation free first meeting to discuss how we can help.
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Properly structuring debt to maximise long term benefits.
This is an area we commonly see Doctors about to make bad long term decisions based on ‘advice’ of other parties such as banks or mortgage brokers in regards to lending amounts and insurances, and the ‘common sense’ approach of paying down debt as soon as possible. Setting up the structure of your debt incorrectly on property you intend to keep long term can cost tens of thousands of dollars in extra tax.
The need for adequate personal insurances
As a Doctor your most valuable asset is your ability to earn. Without this, your ability to achieve financial independence is severely impaired. Personal risk insurances are something we hope to never need use however in reality things happen. Your personal risk insurance portfolio needs to be setup based on your individual needs, circumstances, desires, and budget, and have consideration for what is in your long term best interest. At Walshs we educate on how to minimise your risk of health impacts on your pathway to becoming financially independent in ways that suit your individual needs and situation with a focus on the long term. It is crucial to get your insurance portfolio structured in the correct manner instead of going for the cheapest cover possible – the classic story of ‘you get what you pay for’ certainly applies to personal risk insurances.
The most common area of concern we see with clients in the training years are:
- Lack of understanding of the need for tailored personal risk insurance cover
- Understanding the need but ‘haven’t got around to it yet’
- Reliance on automatic insurance within superannuation
- Underinsurance as the policies started in earlier years haven’t kept up with changes in circumstances
- Lack of consideration for long term needs and/or structure
Planning for large expenses: Fellowship, family, property
A large element of the advice we provide is ensuring that large expected expenses in the future are considered when looking to utilise cash for purchasing assets now. It is common to start planning for Fellowship year, depending on location, up to 2 years in advance to ensure adequate funding options are available – cash savings and/or debt.