Investment Strategy for Doctors

Investment advice for Doctors: First, do no harm

Investing for doctors presents a unique set of considerations, which can be different from other investors. We assist physicians in setting up balanced and diversified portfolios.

The 6 top factors in successful investing for the Medical professional are the follows:

  1. Early Investing: Doctors start their careers about 10 years after those in their age bracket, in other professions. This implies that their investment portfolios need to be much more focused towards growth in the early years, including higher stock allocations
  2. Conserving Assets: The good news is that earnings can scale up faster for doctors. So once they have stable practices with healthy revenue, the attention must switch to a balanced growth and ultimately towards generating cash flow in retirement
  3. Investment Clubs: We work with doctor practices and others that have investment clubs, to put together a holistic structure that can protect the investor’s interests within Investment clubs. We would not do surgery on ourselves, nor would we advise doctors to invest all of their own assets. We do understand the desire for many medical professionals to have input on investment of some part of their assets and we help them do so in a cooperative and risk controlled way
  4. Asset Protection for Doctors: An unfortunate reality is that a high proportion (59% according to a malpractice insurance survey of doctors) get sued over their professional lifetimes. Asset Protection from suits is critical in the planning for a physician. We work with our associated law firm to counsel on the best strategy for protecting assets for doctors
  5. Get rich quick schemes: In our work we see doctors sometimes fall prey to investment plans that seem too good to be true such as various higher risk MLPs etc. We focus on solid long term growth, with accounts that are custodied at well-known Institutions (such as Interactive Brokers) and owned by the client. We work with our clients when they want to invest in a new idea and will evaluate the investment free of charge and advise as to whether we believe it to be a good investment
  6.  Real Estate investment: We find many medical professionals have a large part of their earnings tied up in real estate. For one, after taxes, maintenance and other costs, the real return from real estate very often does not even keep up with inflation. Sometimes the returns are negative. Also the asset is illiquid making it hard to get cash out, especially in retirement. We work with doctor clients to evaluate their real estate and to discuss plans for getting liquidity and returns from the assets

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