How to protect and grow your wealth at every stage of your medical career

It’s never too late to start growing your wealth, but those who start earlier tend to enjoy better long-term financial outcomes. If you’re a doctor in training or still in the early stages of your medical career, now is the perfect time to take a few simple steps to protect your financial future.

At Smith Coffey, we’re experts in helping doctors and medical professionals protect and grow their wealth. That’s why we’ve put together this list of tips that you can use to secure your long-term financial health at every stage of your career.

How to Protect and Grow Your Wealth…

While You’re at Medical School

• Grow your financial literacy by gaining a better understanding of the Australian financial system (e.g. superannuation and taxation requirements) and simple ways to invest.
• Create a budget to help you manage your living expenses. Ideally, you should identify your spending limit and plan to spend less than this so you have a buffer. You can either do this yourself or use an app to help you track your spending.
• Start saving money by routinely depositing small amounts into a savings account. Keep some of this on hand in case of emergency, but also consider investing a portion.

While You’re Working a Graduate Job

• Consider additional super payments to improve your financial security in retirement. Just remember that contributions over the yearly cap of $30,000 will be taxed at a higher rate.
• Purchase insurance policies for income protection, life insurance and professional indemnity so you’re financially protected.

As Your Career Progresses

• Keep growing your financial literacy by staying up to date on the latest investment strategies and consulting with financial advisors like Smith Coffey who know your industry.
• Invest part of your income in a diversified investment portfolio. There are a number of investment strategies you can use, but your choice will ultimately depend on your circumstances and goals.
• Plan your tax with an expert tax advisor who can help you maximise your deductions and create a long-term tax strategy that aligns with your financial goals.
• Plan your estate by creating wills (and trusts, if relevant) to ensure your assets are handled effectively, and your wishes are honoured if you’re not around to do so yourself.

As You Prepare to Retire

• Develop a retirement strategy and review it periodically to ensure that your savings and investment strategies still align with your current retirement goals. Use this as an opportunity to make any necessary adjustments.
• Plan for healthcare costs that may arise as you enter retirement, such as any at-home care needs.
• Develop a drawdown strategy for your super and any other investments that’ll help you sustain yourself financially through retirement in a tax-effective manner.
• Talk to a financial advisor about tax-effective ways to distribute your assets to your heirs or any charitable institutions you wish to donate to.

Final Thoughts

It’s never too early to start planning your financial future.

At Smith Coffey, we don’t just grow your wealth – we help you protect it so that when the time comes, you can retire with peace of mind.

Let’s have a coffee and a chat about your financial future today. Book your free initial consultation.