“It must be great to be a doctor…they’re so rich.” - Every non-doctor ever

Ok, let’s start by saying yes, it is great to be a doctor. Helping others live better, healthier lives is a fantastic calling and it’s rare to find a doctor that regrets his or her choice of profession.

But while doctors seem to earn big dollars (indeed, a recent Bureau of Labor Statistics study found 16 of the nation's top 30 highest-paying occupations are in the medical field), there are plenty of reasons obtaining a high net worth is no easy feat. Here are a few:

1. Doctors get a later start

Many other professional-level people start earning well above-average wages in their mid-to-late twenties, where most doctors at this age are either still in school or beginning residency. For physicians, the high wages generally don’t come until the mid-to-late 30’s (and even into their 40’s). This leaves less time to save for the future.

2. Insurance

Malpractice insurance is ridiculously expensive! And doctors get sued — a recent survey shows 61 percent will get sued at least once over their careers.

3. Student debt

Medical school is also extremely expensive. Many physicians carry student loans that will not be repaid for decades.

4. A doctor's office is often a small business

Many doctors are self-employed. They have rent, employees and other normal expenses that every small business has. Additionally, self-employment often requires high cost, cutting-edge machines, the previously-mentioned high insurance and one of the highest overhead businesses imaginable.

5. Health insurance

If you think your personal health insurance is terrible to work with, the doctor deals with the same bureaucracy, only tenfold. Doctors often wait months for payment, have to accept less and so on.

Doctors need tax strategies and financial planning too

The preceding contributes to an issue many doctors face: that despite above-average earnings, they may not be as strong financially as they could be. In fact, many are underprepared for retirement.

There is good news, however. According to Joseph Griffin, president of physician-focused TrueNorth Wealth, there are tax strategies many doctors can engage in right now, whether they are self-employed or not. There are also effective investment and saving vehicles that can help alleviate the “started saving later in life” factor many doctors face.

“We specialize in working with medical professionals, chief amongst them physicians, so we have a keen understanding of their unique financial issues,” stated Griffin. “And trust me, they are unique. Yes, most doctors earn a lot when they reach middle age, but it’s a long road to get there, and they also have expenses well beyond most professions. We make it our business to help them take advantage of everything available to them, no matter where they are in their career. One of our priorities is finding lucrative ways to save pre-tax dollars. This can be instrumental to a doctor’s financial health. We review and create these types of strategies with each of our clients and utilize the best tactics to help them preserve wealth.”

In the end, it’s clear that while all outward appearances show doctors to be very well off, the truth is much more complicated than the raw earnings of established professionals. Doctors serve a very important role in our society and deserve professional services catered to their complex world. Fortunately, with specialty financial planning firms like TrueNorth Wealth, they do exist. If you are a doctor that wants to do better in this space, then take advantage of a no-cost consultation.

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