Financial Planning: 5 Tips for Doctors to keep in mind
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Financial Planning: 5 Tips for Doctors to keep in mind

  • Highlights

  • Protection from high legal costs

  • Build wealth for addressing major life goals

  • Diversifying investment portfolio

  • Having a retirement corpus

Just like others, doctors need a concrete financial planning to address their short and long-term goals. While short-term goals encompass going on a vacation, home renovation, etc. long-term goals entail wedding, giving children the best possible education, buying a home and saving enough for retirement. Always busy and on their toes, it's essential for doctors to take out time and chalk out a financial plan to address these major goals.

 

Steps Doctors Can Take Toward Financial Planning

1. Get an Indemnity Cover: A professional indemnity cover/ medical indemnity insurance protects doctors against any legal liabilities they may incur as a part of their practice. This cover protects doctors against legal cost and compensation filed by patients in case of legal row, which can run into several lakhs of rupees or even crores.

New-age indemnity plan covers costs of hiring the services of a lawyer and ensures medical professionals can focus on their practice without having to

worry about the quantum of financial losses that a litigation can bring. This cover cushions their savings from being wiped out, thus putting a question mark on their career and reputation.

2. Repaying Education Loans Before Applying for Others: Most doctors seek education loan to fund their overseas education. However, an education loan just covers tuition fees as opposed to a personal loan or a loan against property for doctors which not only covers tuition fees, accommodation expenses and travel costs while studying abroad but also can be used for diverse needs, such as setting up their own clinic, funding research project, etc., as they move ahead in their career. Depending on your financial requirements you can opt for a loan, a loan against property for doctors offer loans up to Rs.2 crore, whereas a personal loan for doctors offer up to Rs.35 lakh.

Also, once they complete their course, a major portion of their earnings goes in repaying this loan. On the other hand, repaying an existing education loan on time helps them to avail business and personal loans for their other needs can add pressurize their monthly income.

Doctor Loans - Everything You Wanted To Know

How to apply for a Loan Against Property for Doctors

With an easy 4-step online application process, availing a Loan Against Property has never been simpler.

You simply need to fill in some basic details on the form, post which our representative gives you a call to confirm your offer and schedule a document pickup. Next, he arrives right to your doorstep at the scheduled time and collects the needed documents like your KYC documents, medical degree certificate and property papers. After the verification process is complete, your loan is approved within 24 hours.

The best part of applying for a Loan Against Property for Doctors from Bajaj Finserv is that your loan is sanctioned without you submitting any financial proof.

3. Build Wealth for Major Milestones of Life: Financial planning is all about wealth creation to address major milestones of life such as marriage, buying a home or car, giving children the best possible education, funding their higher studies and marriage and leading a stress-free retired life.

Through prudent investments in different asset classes such as equities, debt, fixed deposits, etc. doctors must build wealth to address the major milestones of their lives.

4. Diversification of investments: While investing in different assets is a good idea and diversifying your investment portfolio, it is even important to understand the varying risks and returns associated with different asset classes such as equities, debt,fixed deposits, gold, real estate, etc. Doctors should seek professional help prior to making any investment in the available assets.

5. Build A Retirement Corpus: Doctors don’t really have a specific retirement age and continue to work until they are physically able to. This gives them the freedom to choose their own retirement age. Therefore, if their financial plan is sound, they can build a retirement corpus fast and retire early.

Thus, financial planning for doctors is a must. A disciplined approach to their finances could lead them to a great deal of prosperity.

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