Should Doctors And Dentists Repay Debt Or Invest Instead?

Yves SchoofBusiness

It is an intriguing question that does not have a straightforward answer, as various issues need to be considered.

Generally speaking though, the lower mortgage interest rates are, the more favourable the case for investing becomes.

Indeed, repaying your home mortgage provides a guaranteed, risk-free return equal to your interest rate, but when those rates are below 3% like at present, many people believe they can get a higher return through investment.

Add to that the attention that has been drawn to share markets over the last few months, with many people believing the market correction presents a good buying opportunity, and it is not hard to explain why there is such a huge interest in investment.

Now, interest rates are one factor, but what personal factors should you consider?


Let’s explore this.


  • Your age and timeframe to retirement

No one should underestimate benefits of compounding, which essentially means that the earlier you start investing, the more heavy lifting your investments will do for you. And so there is definitely a case for balancing debt repayment and investment early on in your career.

Now, if you are close to retirement (say 10 years) and have built insufficient wealth, then you may need to focus your attention more towards investment. You then may need to make the decision to downsize your home to clear your debts in retirement.


  • Your current debt and wealth position

I have seen clients who are burdened by too much debt, that they would be unable to repay in full by retirement. Couple this with a low level of investments assets, and a decision needs to be made with regards to how to best prepare for retirement.

If you are not prepared to sell your ideal family home now, you may need to be ready to ‘rent’ your home by minimising loan repayments and actively build wealth, and commit to downsizing later in favour of a better retirement lifestyle.


  • Your appetite for risk

The higher your appetite for risk, the more inclined you may be to invest as opposed to repay debt.


There is no one-size-fits-all answer to this question, and so we take a very individual approach to develop a long term financial plan for you.

This is based on financial modelling, so we can stress-test different scenarios, based on your individual circumstances.

If you would like to discuss your individual circumstances, please contact me on 0432 885 295 or

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 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.

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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