DOCTORS IN TRAINING (FELLOWSHIP)
Your chosen specialty is a very large influence on your pathway through to financial independence, with impacts felt from the training years onward. Career pathway influences include not only income & expense differences, but also factors such as location during training, fellowship locations, length of training, and lifestyle needs. Given our extensive experience with doctors at all career levels and specialties we understand how and when these nuances need to be considered, which ensures we are making the right financial decisions for your long-term best interests.
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.
PROPERLY STRUCTURING DEBT TO MAXIMISE LONG TERM BENEFITS
This is an area we commonly see Doctors, Dentist & Allied Health Professionals about to make bad-long term decisions based on “advice” of other parties such as banks or mortgage brokers in regard 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 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
THE NEED FOR ADEQUATE PERSONAL INSURANCES
As a Medical Professional your most valuable asset is your ability to earn your income. 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 having consideration for what is in your long-term best interest.
At PECUNIA Private Wealth Management 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. Providing this service with the influences of commissions or other incentives can save you thousands of dollars over the years.
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.
Having worked for both Corporate and Private Practices for many years PECUNIA Private Wealth Management was established in 2015 with a vision to provide “Inspired Strategic Thinking Today For Your Future Tomorrows” predominately for people just like you. Through our vast network of specialised Professional services PECUNIA Private Wealth Management now works with tax and accounting services, business structuring, business services, superannuation and retirement planning, finance, insurance and estate planning specialist all who have a deep understanding of the Medical, Dental & Allied Health Sectors.