A home is the most expensive purchase you are likely to make, unless you buy a medical practice. Your home is more than a place to lay your head, it can serve as an investement. Given the high price of homes and the impact on your monthly budget, working with an accountant and financial adviser before purchasing a home can be worth its weight in gold.
Most physicians get into the medical field because they love to help people and want to make a difference in the world. Money and finance are often not the strongest areas of expertise. Working with financial professionals can set you up to make better financial decisions and can also reduce costly mistakes that will impact your everyday life.
What Can an Accountant Do For You
Today accountants are more than just number crunchers. Experienced professionals can offer tax advice, help with monthly budgeting, estate planning and be a strategist for increasing profits and minimizing taxes.
Hiring a CPA is the best option, as they have a background in both tax law and financial strategies that can keep more money in your pocket. Bookeepers and tax preparers generally do not have the education or background that a CPA does. CPA’s are more skilled at establishing a financial strategy that is the most effective and efficient available.
When purchasing a home, an accountant can help you understand the tax implications and benefits you can gain from home ownership. They will help you align tax deductions that are available at the time of purchase along with ongoing benefits that are available each year. Seeing how the monthly expenses fit into your overall budget will give you a clear perspective on the impact of your purchase on your lifestyle.
Accountants can also help you establish a long term plan. This might include the price range of the home as it relates to your monthly budget, along with the impact of upgrades you want to complete. An accountant can be a valuable resource for both budgeting and making tax efficient decisions.
What Can a Financial Advisor Do For You
Financial advisers help organize your financial life. This includes investments in the stock market, retirement planning, college planning and buying a home. Advisors are able to take all of the moving parts of your financial needs and create a workable plan that will lead to success when it comes to reaching your financial goals.
One of the key elements to reaching financial goals is your monthly budget. With the home mortgage being the largest factor to that budget, it makes sense to work with an advisor to determine what this monthly expense should be. They can help you decide how large of a mortgage loan you want to carry and how that will impact your ability to plan for retirement and other financial goals.
Financial advisors can also advise around estate planning and ensure your financial world is in order in the event of unexpected events.
Meeting with both an accountant and a financial advisor will arm you with the information needed to make the best decision around price, monthly budget and tax consequences. Your home purchase will impact your finances significantly. The monthly payment is generally your largest expense and will be a major factor in the amount of discretionary money you have to spend each month.
After speaking with a financial professional: Search our List of Physician Lenders to find the best program for you.