So I'm watching an Olympic snowboarding competition on TV last night and it got me thinking about events that can bring your whole financial house down.
In the snowboarding event 7 snowboarders race through various obstacles and jumps and try to get to the finish line first.
What's interesting is that in several trials the person who was leading the race over half way through ended up wiping out and came in last.
The person never expected it, and the audience didn't either.
It made for some exciting TV viewing.
With your finances and investments it's not so exciting when events that could wipe you out happen.
Here's an exercise I do every so often and what I force my clients to do -- almost all of them are physicians by the way.
That's to think about events that could wipe you or your family out from a financial perspective.
Make a list of those potential events.
One common mistake I find is that many physicians don't know or think about some of the the events that could lead to financial disaster.
That's where a good financial planner comes in -- it's not just about generating investment returns. It's about addressing broader issues that impact you.
Then think about what plan you have in place to address those events should those events happen.
If you do not have a plan for ALL of those events, then come up with one.
But here's the hard part for most physicians...
That's to take action.
Even if you've thought about financial catastrophes, it's meaningless unless you IMPLEMENT a plan to proactively address those issues before they happen.
It doesn't do you any good to buy a fire extinguisher after your house burns down, right?
Same thing with your personal finances and investments.
I fully understand why it's tough for many doctors to implement any of this. It's because we're just too busy practicing medicine. The demand on our time is too high. And in the little time we do have, it's difficult to know what to do if you don't have the interest, knowledge, or training to do it.
I hear you. I faced the same challenges when I practiced emergency medicine full time.
But the benefits you get can be enormous to you, your family, and your career.
What financial disasters can wipe YOU out?
What are you going to do about them?
Help is here:
Talk again soon.
Setu Mazumdar, MD
"The Physician Financial Planner"