Two Critical Investment Truths For Doctors And Dentists

Yves SchoofInvestments

Investing and wealth creation can be really simple and yet very efficient and successful.

However, many doctors and dentists, and their advisers in particular, complicate matters with no real benefit, and think too short-term.

Here is an excellent article that highlights the benefits of long-term investment thinking: Lessons from the Market

If you don’t have time to read it, here are the two things you need to know:

1) “Time is very much one of the best weapons investors have.”

It reinforces the point I have made in other articles, that doctors and dentists should start investing as soon as practical, even if it is in small increments. This is because of the power of compounding.

2) “There are two things you can control: the cost and how much you save. In the current environment with low return expectations, it’s more important than ever to question whether you’re saving enough.”

Indeed, there are two simple ways in which you can optimise your return:

– Costs and fees matter, and highly influence your net return, so it makes sense to minimise them;

– Even more important is your asset allocation, as it drives over 90% of your return: think carefully about how you invest your money

Finally, if the returns are expected to be below par due to the economic environment, you need to be prepared to increase your contributions. Again though, the sooner you start investing, the lower your ongoing contributions will need to be.

If you would like to learn more about investing, then please download my Principles of Successful Investing ebook. Click HERE to get it now.

Yves Schoof
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Yves Schoof

Author | Specialist Adviser for Medical Specialists and Surgeons at Affluence Private Wealth
I specialise in managing and coordinating the financial affairs of medical professionals and have been recognised as one of the best financial planners in Australia. I am a Certified Financial Planner and member of the Financial Planning Association of Australia.

As I understand your time is extremely valuable and scarce, I am able to offer flexible meetings times, including outside business hours and during the weekend. I can even come and meet you somewhere convenient, or talk via videoconference on Skype.

My first consultation is free. I allocate up to 90 minutes to discuss your personal circumstances and to establish how I may best assist you. Where you already have an existing adviser, I would be happy to offer a second opinion. I always quote a fixed dollar fee before we start working together.

Please contact me on yves@affluenceprivate.com.au or call me direct on 0432 885 295. You can follow me on Twitter @YvesSchoof or connect with me on LinkedIn to receive new articles.

DISCLAIMER
Yves Schoof and Affluence Private Wealth are Authorised Representatives of Synchron, AFS Licence No. 243313. 

The information posted is intended to be general in nature and is not personal financial product advice. It does not take into account your objectives, financial situation or needs.
Before acting on any information, you should consider the appropriateness of the information provided and the nature of the relevant financial product having regard to your objectives, financial situation and needs. In particular, you should seek independent financial advice and read the relevant product disclosure statement (PDS) or other offer document prior to making a decision.
Yves Schoof
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