A recent Wall Street Journal article profiled a dual physician couple who recently hired a financial advisor because they wanted to get back in the stock market.
The husband is a surgeon and the wife is a dermatologist. I'm assuming they make a decent combined income and pay some whopping taxes since they're part of the evil rich.
Anyway what struck me about them is that they appear to exhibit the typical behavior many physicians have with investing.
Now realize that I don't know these people, so I'm basing this only on what the article said.
This physician couple said that they got out of the stock market in 2008 AFTER they lost about half of their portfolio. Apparently they've been sitting in cash ever since.
As the markets climb to higher and higher records nearly every day, they want back in.
They state "We just didn't want to be left on the sidelines."
Let me translate this for you. What they are really saying is this:
"We have no investment plan whatsoever."
"We're clueless about market history."
"We don't have an ounce of discipline."
"We're cool because we're doctors who make a lot of money and are smart about investing."
"We're just sheep waiting to get slaughtered again just like back in 2008."
And I bet you they don't have any idea of the consequences of their poor investment decisions such as:
- Working longer, perhaps years longer than they anticipated
- Spending less time with their kids
- Rolling the dice that their future income will be as high as now and betting incorrectly
- Sacrificing more evenings, holidays, and weekends
Or maybe they just don't care. You see, many doctors "care" about their finances about as much as politicians care about fixing the deficit.
The article goes on to interview another doctor--this time a former doctor--who is still out of the market. She's fearful of losing money in the market and states that if you get into the stock market now you could "be hurt very badly."
Gosh, where do I begin with this one? I could go on for an hour, but since I've actually got a life outside the hospital (actually I haven't worked in the ER in over 4 years since I work on my own terms now) and a bunch of clients to take care of, I'll make only one point about this foolish doctor.
Let's see. In March 2009, there was doom and gloom that the entire world economy would collapse and we would enter another Great Depression. The US markets had dropped 50% from the highs.
Gee, what do you think people were feeling back then? Don't you think they felt they were going to get hurt very badly at that time?
And now you're telling me--AFTER you should have had something like a +100% GAIN since then--that you're going to get hurt by investing now?
Hello! You've ALREADY been hurt by the huge gains you've missed out on! Money is money whether you lose what you already have or fail to get what you should've gotten due to poor investment choices and lack of discipline.
And you treat patients?
Oops, sorry, I forgot, you're a FORMER doctor.
I could go on, but many doctors just don't get it.
And never will.
Which means they have no right to complain after the government, lawyers, hospital administrators, and patients (yes I said that!) walk all over them.
So if you're sick and tired of having no investment plan and want to start creating a path to get your life back, your first step is to set up your Financial Strategy Consultation by clicking here:
But only if you REALLY care about your finances and investments. Otherwise, you should contact the Wall Street Journal and have them profile you as yet another doctor without a financial plan.
Here's a link to the Wall Street Journal article if you want to read it yourself: Mom and Pop Run With the Bulls.