Confused And Uncertain About Your Finances? You Are Not Alone
Disclaimer: The information provided is for general informational purposes only and should not be considered as professional financial advice. Please consult with a financial advisor for advice specific to your situation.
If you're a physician who wonders whether everyone else has their finances figured out except you, this episode is for you.
Behind closed doors, what I sense from a lot of physicians is a fair amount of judgment directed at themselves, around not having it all figured out, not knowing if they're doing the right thing. Whether it's paying down debt versus investing, making the most of their corporation, or hearing about advanced tax or insurance concepts and not being sure if any of it applies to them, the uncertainty is real. And it's far more common than most people realize.
In this episode:
Why physicians feel like everyone else has it figured out but them
Survey results from over 100 Canadian physicians on how confident they actually feel about their finances
Why more information isn't always what moves the needle
What to do when you've been thinking about getting some help but aren't sure if it's the right time
You Are Not Alone
I put a survey out to Canadian physicians to understand how confident they felt about their finances. The results were eye-opening.
When I asked incorporated physicians how confident they were that they were using their corporate structure to the fullest when it comes to tax planning and retirement savings, only 8% said they were extremely confident. 30% said they were not at all confident. 53% said they were only somewhat confident. That means 83% of physicians who answered were either not confident or only somewhat confident that they were using their corporation effectively.
When I asked how people felt about financial planning overall, 32% said they wanted someone to do it for them but didn't know who to trust. 32% said they found it all very confusing and didn't know where to start. Combined, 60% of physicians who answered either wanted help but didn't know who to trust, or were confused and didn't know where to begin.
If you identify with any of that, you are not alone.
More Information Isn't Always the Answer
There's a concept from education called Bloom's Taxonomy that I find useful here. Knowledge, meaning information, is actually the lowest level of understanding. Above it are comprehension, application, analysis, synthesis, and evaluation. The higher levels are where you actually start applying things to your own life and situation.
A lot of physicians I meet are consuming more and more information: books, podcasts, articles, online forums. But they still feel stuck. That's because more information alone doesn't move things forward. At some point the information is enough, and what's needed is someone who can take your specific situation and figure out what actually applies to you and what doesn't.
There are a lot of concepts that come up in physician financial planning: TFSAs, RRSPs, corporate strategies, tax loss harvesting, capital gains stripping, IFAs, IPPs, and more. Any one of those might make sense for some people and not for others. The only way to know is to look at your specific situation with someone who understands it fully.
What to Do Next
Not everyone is ready to hire a financial planner, and not everyone is a good fit for a fee-based plan right now. That's okay. But if you've been thinking about it, wondering whether it's time to get your biggest questions answered properly rather than relying on rules of thumb or what you've heard from others, it might be worth having a conversation.
The call isn't a sales pitch. If a plan isn't the right fit for where you're at, I'll tell you and help you figure out what your next steps are. If it is a good fit, I'll tell you that too.
If you'd like to have that conversation, book a free discovery call and we'll figure out where you're at and what makes sense for you.