Tax-efficient investing is about preserving your capital by optimizing investment decisions to minimize the tax consequences. This strategy becomes especially crucial when you’re investing for the long term. With their professional management and diversification, mutual funds offer several avenues for tax-efficient investing.

1. Capital gains efficiency. When you buy and sell individual stocks, you’re responsible for capital gains taxes on any profits you realize. In contrast, mutual funds pool money from multiple …

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What is disability insurance?

Disability insurance, sometimes referred to as income protection or disability income insurance, is a financial safety net designed to replace a portion of your income if you become unable to work due to illness or injury. It ensures that you can continue to meet your financial obligations, even when your medical practice is put on hold.

Why do doctors need disability insurance?

Doctors, like any other professionals, are susceptible …

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Doctors, like all professionals, are not immune to accidents, illnesses, or injuries. While you dedicate your life to improving the health of others, it’s equally important to safeguard your own financial well-being. Disability insurance acts as a financial lifeline, offering income replacement when you can’t work due to a disability.

1. Protecting your income. Your income is a significant asset; it supports your lifestyle, family, and financial commitments. Disability insurance ensures that …

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For those of us in the field of medicine, the differential diagnosis method is second nature. It involves considering a list of potential causes (differential diagnoses) for a patient’s symptoms and systematically narrowing down the possibilities through evaluation, testing, and clinical judgment. This method helps us arrive at the most likely diagnosis and, subsequently, the most appropriate treatment plan.

Now, let’s apply this concept to investing.

Symptom recognition in investing

In medicine, patients …

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Let me share a story about Dr. Sarah Mitchell.

Dr. Mitchell, like many of us, started her career with a resident’s salary, which was around $40,000 per year. After completing her residency, she received an enticing offer as an oncologist with an annual salary of $350,000.

However, instead of succumbing to lifestyle inflation, Dr. Mitchell made a financially savvy decision.

She committed to living on an annual budget of $60,000 for the first …

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For most doctors, hiring a financial advisor who understands their needs is important when making investment decisions. We are all busy, and most don’t have the knowledge to make good investment decisions.

However, some have the time, and get educated about investing, and prefer to be more involved in making their investments.

A self-directed brokerage account may be one good option for you if you wish to get more involved in your …

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Many of us own our practices and the buildings in which we work. Well, this is one way to understand investing in REITs.

Real estate investment trusts (REITs) are investment vehicles that cover many sectors, including health care and many other industries, such as storage facilities, commercial real estate, and many others. For doctors seeking investments that provide income, REITS may offer one alternative.

Of course, with all investments, discussing this option …

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