Another tax season has come and gone………my 26th straight tax season as a matter of fact (where has all of the time gone??). As each tax season passes, I continued to be reminded of the importance of personal financial planning by physicians. I keep getting reminded about this because the majority of physicians practicing medicine out there just simple don’t have a plan……..most are getting by “day to day”. Tax season always brings this point to the forefront.
Remember to think of financial planning as a pyramid. The bottom of the pyramid is where you do the basics of planning – savings, insurance, retirement, estate, education planning, etc. The middle and the top of the pyramid is where the “sexy” planning begins and ends. However, don’t worry about these parts – concentrate on the bottom (i.e. the basics). This is by far the most important part of the pyramid and the one where most physicians are not prepared.
So when you get a chance, sit down with your financial advisor and just see how far along you are with completing the bottom part of the pyramid. You might be surprised how far behind you really are!!