Debt and its effective management can make all the difference to your financial wellbeing. Almost nobody can get ahead financially without using some debt – even if it is simply a home mortgage that lets you buy the all-important family home. But not all debt is the same. And just as the right kind of debt can make a huge positive difference to your finances, so the wrong kind of debt can be a true millstone around your neck.
Superannuation is the universe’s gift to all people who work. Tax advantaged and asset protected, it makes particular sense for doctors. This chapter examines the two main types of super fund that suit doctors, while also discussing the third type that does not suit (and tells you why!)
If someone relies on your income (and that someone might be you), then you need to get some life insurance. This chapter introduces the main types of life insurance and will help you make an informed decision about the type and amount of cover you need, now and in the future.
You are going to spend a lot of your working life at your practice premises. It makes sense to own them and to make them as pleasant as you can. Often, the capital gain on a property is worth more than selling the actual practice. And being your own tenant is usually reassuring.
Home values don’t go up every year. But they do go up every decade. When you look at home values over the decades there is a significant upwards-sloping trend line. The GFC dampened home values in the final part of the 2000s. But the Real Estate Institute of Victoria reports that the median house price in Melbourne rose by 5% in the last three months of 2016 alone. That tends to be the way with property prices: flat years are interspersed with strong ones, meaning that growth is generally lumpy, but positive over time.
Should you buy a home or start a practice? Well, owning a practice usually makes it easier to buy more home, so our advice is usually to start with that. In this chapter, we discuss the ins and outs of buying or starting your own practice and explain exactly why your own practice trumps pretty much every other type of investment you might make.
If anyone knows about the best way to do retirement, it is a GP! In this chapter, we tell you how best to go about implementing your own good advice – how to start retiring early and then never stop!