How Physicians Can Hurt Themselves When Making Investment Decisions

8:33 pm Asset Protection, Estate Planning

medical logo e1315341047144 How Physicians Can Hurt Themselves When Making Investment DecisionsA New York Times article last week explores why physicians are more likely as a group to make poor investment decisions:

Reward outweighs risk.  Doctors spend eight years learning about how to become doctors, but rarely get any instruction on how to manage their wealth.  After those long years of self-deprivation, many feel the need to reward themselves once the large paychecks start rolling in.  Because doctors generally have a shorter work life (since they start out so late), make more money than average, pay more taxes and receive little aid for things like children’s’ college educations, it is more important for them to plan carefully.

Easy targets.  Since doctors as an earning class make more money than most people, they are considered attractive marks for questionable investment schemes.   They are also more likely to trust rather than spending time vetting investment opportunities.

Overconfidence.  Since physicians are, in general, above average in intelligence and income, hubris can play a role in destroying personal wealth.

The job of the estate planning attorney is to assist physicians in setting up and arranging their assets and affairs in a way that will successfully transfer their legacy to their heirs in the most orderly and tax saving manner while at the same time preserving and protecting their property during lifetime.

We like to talk about implementing the three “Ps”:

Preserve assets for heirs and family by structuring the proper Estate Plan and by reducing death taxes.

Protect assets over a lifetime by creating liability shielded entities and lowering financial profiles.

Process the plan by properly designing and implementing strategies in the most practical and skillful manner.

Your California legal and financial planning experts are at your service; Contact us today.

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