Physicans & tax season musings

Why Physicians Often Struggle with Personal Finance and the Importance of Planning

As I sit here about to complete my 26th straight tax season, I wonder why I continue to prepare physician tax returns that have high deductions (ex. mortgage interest) but have little or no investment income (ex. interest and dividend income). Yes many have large amounts of cash stashed away in retirement accounts (or so you would think) but many physicians just aren't very "liquid".

Why is this? Why don't physicians have and stick to a personal financial plan? I will tell you from personal experience that there are a whole lot of physicians out there who "have to work". Physicians continue to screw up their personal finances and many just don't seem to care much about it.

If you are in this group, I would strongly advise that you sit down with a financial advisor and get your financial house in order. Remember the old saying: "People don't plan to fail, they just fail to plan". Those that do fail to plan their financial future will someday regret that decision.  I'll bet the ranch on it.

About the Author

Reed Tinsley CPA

This article is written by Reed Tinsley, a Houston, TX-based CPA with over 30 years of experience advising physicians and medical practices across Texas and the United States. Reed holds certifications as a Certified Valuation Analyst (CVA), Certified Healthcare Business Consultant (CHBC), and Certified Financial Planner (CFP), specializing exclusively in the healthcare sector. He is a published author, nationally recognized speaker, and trusted advisor to physicians on accounting & tax, practice management, and financial planning. Schedule a Free Consultation.