Mid-career financial planning: Diversify your assets to ensure a secure future

Established doctors who are busy and are at the peak of their careers typically see an exponential rise in their incomes. By virtue of this income growth, they manage to acquire their first house, a bigger clinic, and can save for important investments such as their children’s education.


 “Asset allocation is based on the principle that different assets perform differently in different market and economic conditions. Diversification allows an investor to reduce risk.”
-Yogin Sabnis, CFP, managing director at VSK Financial Consultancy Services Pvt. Ltd., Mumbai, India


If you are at this point in your career, you should be focused on managing and growing this flow of income to bring optimum returns on your investments. This article will give you actionable advice to help you do that. If you are at an earlier stage in your career, please see my previous article (http://mdcurrent.in/business-of-medicine/financial-planning-for-doctors-start-early-to-ensure-a-successful-future/) on financial advice for doctors who are starting out.

Key Point: It’s important when managing your investment portfolio to diversify your asset allocation. This approach will help you manage risk while also increasing the likelihood that you will receive a return on your investments.

Effective asset allocation is one of the most important strategies for busy professionals to optimize their returns on accumulated wealth. Asset allocation involves investing in diverse investment classes in a pre-determined proportion. This practice is based on the cardinal rule: “Don’t put all of your eggs into one basket!”

Investment planning and asset allocation

As a physician, chances are good that your hectic work life does not permit you a lot of extra time to...

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