Why Every Emergency Physician Has What It Takes To Be A DIY Investor

crispydocUncategorized

Physicians provide a historically target rich environment for financial predators. We assume our expertise in medicine translates into competence in other spaces, like investing.

How do I know? 'Cause I'm a doctor, that's how I know!

Alternately, we plead ignorance to all other facets of life because we are so darn busy saving lives. Finances? Who has time? Why dirty hands that heal with the stain of money?

The truth is that, with a bit of reading and discipline, most physicians are absolutely capable of managing their finances. In my specialty of emergency medicine, I like to think we possess additional advantages over other branches of medicine courtesy of our training and mindset.

You understand the importance of downside risk.

You  are accustomed to always considering the catastrophic  diagnosis and the need to exclude it before you move onto the likelier but more benign diagnosis. This translates well to the ability to always consider the financial peril that will sink your planned retirement, and hedge your bets accordingly.

You are persistent in sifting through loads of red herrings to uncover the buried but critically important detail.

Yes, I understand that when your five year old son turns his left great toe in a twisting motion he says it makes his spine hurt and also causes him to complain of chest pain which he does not currently have. In fact, he seems to be completely ignoring me as he plays a video game on your cell phone. And when I ask you what you are most concerned this might be, and you explain that your niece was just diagnosed with leukemia, my heart will break for what you are going through and we can begin the process of addressing your true concern and putting your worries to rest.

You are able to compartmentalize in ways others cannot.

When you walk out of your shift, no matter how awful your section of the relay race, you hand off the work baton and pick up the life baton. The ability compartmentalize may not be the best adaptation to seeing awful things happen to unsuspecting people, but it comes in rather handy as an investor.

Compartmentalizing is a super power that allows a healthy amount of benign neglect to work in your favor as an investor - in fact, some the most successful investors are dead people, and their inability to constantly tinker with a good enough plan is the secret to their success. Peers may feel the need to constantly pay attention to the daily volatility of the market and respond with compulsive tweaks to their overall investing plan. These adjustments undermine their ability to devise a reasonable investing plan and then stay the course, adding endless transaction costs with every attempt to "improve" or correct.

You, with your superior ability to execute the latter half of a "set it and forget it" passive investing plan, need not shower excessive attention on the noise in the market.

You are acquainted firsthand with the shortcomings of relying on the system in your old age.

As such you are more motivated to achieve financial independence without relying on outside sources of support. You've seen what happens to folks who counted on adult children, expected ample pensions from  companies that went bankrupt, or otherwise assumed the presence of safety nets for care and support in their old age. The results are never pretty.

So what's holding you back? Check out some recommended reading and take control of your life today.