Why Doctors are Lousy Investors

Doctors are always lousy investors, after working for so many years,  I notice a few obvious common behaviors doctors are sharing. These characters might explain the reason why doctors are lousy investors,

1) Doctors are non-risk takers

We do things according to procedure and statistics, doctors only perform certain surgical procedures and prescribe certain medications based on best clinical evidence and trials. Doctors get used to sticking to rules and regulations, we do not take risks. Investing needs risk-taking and you might be losing money which is unacceptable to a lot of doctors. Money is usually kept under the pillows, CD ( Fixed deposit), or in saving/current account which returns ZERO percent!

2) Doctors are too busy to handle their finances

Doctors are busy people. We handle patients’ complaints, do our best to treat them. We spend too much time thinking of how to make our patients recover. Unfortunately, we are not always being appreciated by patients nor their family members. We are too busy to have time looking at our finances.

Frankly, I personally do not look at whether patients pay me or not. During this MCO ( Movement Control Order) period in Malaysia, since I have more time and finally look at my revenue statement hospital sends me every month, I am shocked to know that patients owe me hundreds of thousands ringgit since 2016.

3) We think we can make it

Doctors always think that if we work hard, we will be able to retire in the future. We are well above average but the truth is, a lot of doctors are broke even though they are high earners. Many of my friends are getting fat cheques every month but they are big spenders as well.

They can not retire because they are basically living paychecks by paychecks like a lot of middle-class Malaysians and Singaporeans.

Some doctors are still working at the age of 70 years old, I doubt that they love their jobs, they keep working because they just can’t retire. Doctors’ lives are stressful, and I hope that I can retire soon and work part-time.

4) We like to live in a big house

The very first advice I got when I joined private practice- buy a house.As big as possible provided you can pay the monthly mortgage. The big-ass-house serves no purpose except full-filling your delusion of grandeur! Living in a big house does not imply you are wealthy! Earning a big fat paycheck won’t make you wealthy if you spend every cent you earn.