Viewed from the outside, the medical profession looks highly lucrative, and most people think that doctors don’t have to worry about loan repayment, budgeting and retirement planning. The reality is not quite so rosy, though.
Doctors have some of the heaviest debt load before they even start working, and they can spend a large portion of their life just paying off student loans.
After a practice is set up, there’s a wide range of expenses involved in its day-to-day running. Clinic expenses typically include heavy rent and upkeep, staff compensation, cost of equipment, utilities and supplies.
It’s quite common to see medical professionals spending all their money on fancy cars, large houses and the latest gadgets, with nothing left for retirement savings.
Many are unaware of retirement plans available through their employers, or make bad investments based on advice from friends, coworkers or even patients. As a result, their retirement nest egg suffers.