How ANY Physician Can Invest … Without Financial Experience!
As a physician, you’re blessed with a unique number of advantages that most of the population simply don’t have. Aside from – generally – a very decent income, you’ll also enjoy access to a range of financing options that simply aren’t available to most people…
But in this post, we’re going to take a look at ways you the physician can invest – even if you don’t have any investing experience, or don’t know where to begin!
Now, we’re going to focus on some of the more generic points in this post. If you feel as though you need specific, tailored advice for your situation, then it’s worth getting in touch with an experienced financial advisor, as they’ll be able to give you accurate information relevant to your specific situation.
Still, if you’re new to the world of investment, this article will serve as a great starting point – so, let’s begin!
#1 Build a Portfolio as Soon as Possible
You may think a portfolio is reserved for America’s “elite”… but the truth is, anyone can build their own portfolio… and the quicker you start doing so, the quicker you’ll begin to see a return, growing your wealth, and your income.
There are a number of ways you can start your first portfolio, and it can be as simple as investing in stocks or shares – but of course, this doesn’t come without risk, and you’ll always want to do the appropriate due diligence before risking any of your own money.
That’s somewhat beside the point of this article, however; the main things is that you do so SOON, as, the later you leave it, the less time (and chance) you’re giving yourself of growing a substantial nest egg, that you and your family can enjoy later on in life.
#2 Set Realistic (Yet Ambitious Goals)
One of the major problems faced by many investors is that they don’t have a clear, tangible, and realistic plan in place for their finances.
It’s all well and good investing your money – but if you don’t have any expectations, and aspirations, there’s a good chance you won’t have a clue what you’re actually trying to achieve, and that’s one of the reasons why we recommend you always set yourself goals, whether that be time-frame, or wealth-amount related.
If you opt to use a financial advisor (and you really should once you begin investing more money), they’ll be able to help you put plans in the place for the future.
These plans will typically take the form of 5-year plans but don’t be afraid to ask for goals to be set over shorter, or longer terms.
The more you’re prepared, the better you’ll be able to choose how much – and how often – to invest, and it can make a big difference in your ability to grow a portfolio if you have set achievable goals and targets.
#3 Minimize Taxes
None of us like to pay taxes – but unfortunately, it’s the law, and it’s not likely that’ll ever change!
To ensure that you’re paying as little tax as-is legally required of you, it’s well-worth getting a specialized tax advisor, who’ll be able to look over your investments and advise you on any areas where you’re paying needlessly.
Your financial advisor may also be able to help with this, although they are specialists in investments themselves, so, while they are likely to have good knowledge of the tax system, they too will likely recommend you seek an experienced tax advisor.
Now, you’ll likely to have a pay a fair amount of money if you want a GOOD tax advisor, who’ll save you a substantial amount of money – and while it may be unsettling to see yourself spending so much on things like this, it’s worth noting that in almost all cases, you’ll save more than you spend – so, generally, it’s worth doing.
#4 Stick With Your Investment Plan
Yes, it can be daunting to see your money tied up in investments. It can be scary to leave your funds at risk, during turbulent financial times…
But one of the biggest mistakes that can be made by new investors, is withdrawing their funds too early.
Maybe you see a small profit, and want to ‘run with a profit while you can’… or maybe you see your investments falling in value, and want to ‘save them’…
Whatever your reasons for wanting to withdraw, the majority of the time, it’s in your best interests to see it through and play the long-game.
Of course, your financial advisor will be able to give you tailored guidance on your specific situation – but even then, you always have the final say, and before you even think about entering the investment game, you need to tell yourself that you are in it for the long-run, NOT the short-term.
Try your best to stick with your investment plan – even when you’re tempted to cash-out – and while it’s OK to sell up and run with a profit, if you do want to build substantial wealth for the future, and grow your wealth portfolio, you should always try your best to stick to the plans set in place when you initially invested.
That’s just a few different things to remember before making your first investment. Remember, as a physician, you’re likely to have a fair amount of money free each month to invest – and the more you do so, the more wealth you’ll create later on in your life, so while it can be tempting to spend now, and live a lavish life, just think about the future, and plan ahead.
You’ll be thankful for it later in life, and if you invest smartly – with the help of a trained financial advisor – you could see far more profit, in a lot less time, than you probably think!