When it comes to setting yourself up for a healthy financial future, working with a financial adviser might be your best bet. Most doctors and other medical professionals are too busy being experts on medicine to take on financial planning on their own, so why not partner with financial specialists who know and understand the medical community?
How they can help you
Financial advisers can help you with overall financial planning, but they’ll also be able to help you with targeted goals such as:
- saving money
- navigating the current economic climate
- searching for mortgages
- building and protecting your wealth
- pension and retirement planning.
First and foremost, you can rely on your independent financial adviser to be someone you can trust for advice, guidance, and support. Their job is to make sure you’re set up for financial success both now and in the future, so they’re happy to lend an objective opinion on your money matters. Advisers work alongside you and your family, to help you keep more of your hard-earned money while also providing strategic financial planning advice that will help you achieve your goals.
Saving money and choosing investments
Part of the role of a independent financial adviser (IFA) is to help you save money and advise on how to proceed with your investments during uncertain economic times.
Tapered allowance: As many doctors have been affected by the new tapered annual allowance initiative, IFAs can help guide you through how to handle if you’ve been impacted. They know the relevant tax relief schemes, both personal and professional, to help you make the most of your allowances and save on tax. If you’re newly self-employed or if you’re an established practice owner, advisers can inform you of the tax benefits of each business classification, and they provide suggestions to reduce your tax bill at the end of the year.
Investing: They’ll also be able to navigate post-Brexit waters and review all areas of your financial plan to ascertain if anything will be affected. Advisers know that the best way to manage risk while investing, is to diversify. Spreading your money across a range of assets – cash, bonds, shares, and property – reduces the risk to your portfolio. Advisers can provide input into the mix of investments you select so that if one area underperforms, or is affected more by economic factors, you still have other areas working for you.
Savings plans: An adviser can also help with both short and long-term savings goals. Maybe you’ve got your eye on a new car. Or you’re hoping to pay for private or higher education for your children. Perhaps you’d like to help a family member get on the property ladder. Or if you’re concerned with affording long-term care in your old age, advisers can help with all of it. Whatever you’re trying to achieve financially, IFAs are there to help you set up plans that will do just that.
Additionally, they’re an essential asset when purchasing property. Looking for your next home or site for a business venture can be a stressful experience. Add searching for the right mortgage provider on top of that could max out stress levels. Financial advisers can assist you throughout the mortgage process, act as a liaison between you and all parties involved in the application and ensure everything runs smoothly.
Regardless of whether you’re a first-time buyer, searching for a buy-to-let property, or downsizing to a smaller home, an adviser can help. IFAs can also be of service when looking to remortgage or release equity from their home. Since a mortgage is one of the biggest financial commitments you can make, it’s crucial to make sure you secure the best mortgage deal available.
Protect your family, protect your income
Specialist advisers are well-versed in wealth and income protection and preservation for doctors and other medical professionals. Do you know how you would pay for your mortgage or other living expenses if you couldn’t work? In the event of an illness or injury, a solid income protection plan will be a lifesaver.
There are several options that are designed to replace your income to support your family if you’re signed off work and an expert can help you select the right plans for you.
- Life insurance,
- Income protection, and
- Critical illness cover.
In an ideal world, you would equip yourself with all three, but IFAs can help you prioritise protection if necessary. Plus, they can help you with other ways to take care of your family after you’ve passed such as setting up a will, protecting, preserving or ultimately distributing wealth through trusts, and taking full advantage inheritance tax breaks to effectively pass your assets to the next generation.
What are your plans for retirement? Do you want to travel the world, gain new skills, learn new hobbies, or spend more time with family and friends? Whatever you’re looking forward to, a financial adviser can help you create a solid plan that will help get the life you want to live after you finish working. Changes to public sector retirement and pensions could affect your retirement plans as a doctor so it’s important to regularly check in with your IFA to review and revise strategy as necessary.
Advisers do it all – they can help establish your savings goal and retirement date, advise how much a state pension will need to be supplemented with private or workplace pensions or other savings avenues. Whether you’re just starting out in your career and need help mapping out your future savings and investment goals or if you’re nearing retirement age and need to make final tweaks to your portfolio, you’re in good hands with a specialist financial adviser.
Choosing your financial adviser
As the medical field is a specialist career, it helps to partner with a financial adviser who specialises in providing financial advice for doctors and other professionals from the healthcare industry. An IFA with knowledge and experience pertaining to doctor income, pensions schemes, mortgage providers, and tax planning will be a trusted source for your financial planning needs. Be sure to choose one that understands the unique needs of a busy medical professional to make the most of your experience.
This does not constitute advice and advice should be sought in all instances before acting on it. The Financial Conduct Authority does not regulate tax advice. Dental and Medical Financial Services is an appointed representative of Best Practice IFA Group Limited, which is authorised and regulated by the Financial Conduct Authority.