Doctors Can Win The Super Bowl of Investing...Here's How

To say that the Super Bowl was a blowout is a big understatement.
 
You had the team with the best offense playing against the team with the best defense.
 
The first few seconds of the game -- when the Seahawks scored from a safety -- pretty much told us what was to come.
 
Defense prevailed. Take that back, it RULED.
 
So it got me thinking -- since I'm a financial planning and investment kinda guy -- about how a lot of doctors approach their investments and finances.
 
Here are the two biggest financial lessons I learned from watching the Super Bowl:
 
1. Many physicians only focus on investment "offense" and ignore investment "defense."
 
Here are a few examples based on hundreds of physicians I've spoken to, a good portion of which signed up for their initial financial strategy consultation (/second-opinion-consultation/)
 
You buy speculative stocks only thinking about the Super Bowl investment trophy you might score but ignoring the -100% downside risk.
 
You only think about your investment portfolio and ignore the other parts of your personal finances that are equally important, such as insurance planning, estate planning, and retirement planning.
 
You get suckered into believing that your financial advisor has some sort of magic investment football that can get you touchdowns every time when in reality you should just be focusing on getting field goals and avoiding interceptions.
 
You invest in really cool ideas that your doctor colleagues invest in (hey you're a rich doctor right and you need all those complex investments!) only to get sacked by events you have no control over. You then realize you had no idea what you were doing. But then you do the same thing again with a different venture.
 
2. The only way to win with your personal finances and investments is to have first-rate execution of your plan.
 
No doubt the Broncos practiced a ton over the past 2 weeks. The Seahawks did also.
 
But the winning team is the one who faithfully executed their plan. The Seahawks dominated the best quarterback arguably in the history of the NFL.
 
And the losing team is the one who made mistakes and failed to deliver.
 
It's not enough to practice.
 
In the end it's the ability to pull it off when it counts.
 
It's the same way with your finances and investments.
 
You can fiddle around all you want by yourself not knowing what you're doing and then wonder what went wrong when it's too late.
 
And then wake up in your 50s or 60s scratching your head about why you still have to work full time. (BTW, if you're in you're 50s or 60s and you're a physician reading this and you're still working full time, we REALLY need to talk).
 
You can continue to work with your financial advisor who may be touting his great investment offense (reread point #1 above) but not following a real investment plan.
 
Or you can change your path and get the help you really need.
 
Something to think about.
 
Let me know if you'd like to talk to me about your situation by replying to this email or just go to the following:
 
 
Talk again soon.

Setu Mazumdar, MD, CFP®