Why doctors don’t get rich
“Physicians have a significantly low propensity to accumulate substantial wealth.” – Thomas Stanley, author of NY Times best seller “The Millionaire Next Door.”
How come doctors fail to get rich? I’ve identified six reasons based on observations working with my physician clients.
A late start
By the time doctors finish medical school and residency they’re typically in their middle or late thirties. Many have families to feed, and substantial student loans to pay off. It will be years before they can even start accumulating wealth.
It is increasingly challenging to practice medicine. With the Medicare Trust Fund slated to go bust in 2019, the Center for Medicare and Medicare Service (CMS) is increasingly resorting to cutting physician reimbursements and implementing bundled payments.
Society expects a doctor to live like a doctor, dress like a doctor, and drive like a doctor. Meeting social expectations can be quite expensive.
Time and energy
A doctor can’t be just a doctor any more. He and she also has to deal with ever increasing regulatory mandates, paperwork requirements by capricious insurance companies. The demand on their time is mind-boggling. A typical doctor works a ten- to twelve-hour day. After work and family, they simply don’t have time and energy left to do proper financial planning.
Doctors are smart. They’re highly trained in their area of expertise. But that doesn’t translate into understanding about finance. Because they are smart, it’s easy for them to think they can easily master the field of finance as well. They can’t.
Lack of trust and delegation
Many doctors don’t trust financial advisors working for major Wall Street banks. They have the good instinct to realize that their interests are not aligned. Not knowing there are independent advisors out there who observe a strict fiduciary standard, they tend to do everything by themselves.
Join The 5% Club of Highly Successful Doctors
Over the ensuing years, I talked to many physicians. What I discovered was shocking: 95% of physicians are failing to take care of their own family finances in a comprehensive manner. Only 5% are succeeding.
I call this very rare group the 5% club of highly successful physicians. I have identified five strategies that are common to their success, and I built a team of experts to execute those five strategies for my physician clients so that they can also join the 5% club.
Start by schedule a discovery meeting with me.