Tech Talk
Islam has rules that need to be taken into account when financial planning .
Smart Practice
Tech Talk
Antony Scholefield
Going by the book
FINANCE
THE Corporations Act , and the general law , requires financial planners to ensure their advice is in each client ’ s best interests and that they prioritise the client ’ s interests over the adviser ’ s interests .
This means each client ’ s unique circumstances must be considered when constructing financial plans . Muslim doctors present an interesting case . There is a lot that cannot be done . But there is a lot that can be done too .
Personal philosophies vary from doctor to doctor and usually reflect their ethnic and geographical backgrounds and religious beliefs .
When it comes to Islam and financial planning , there are at least four common characteristics that do not sit well :
• Debt and interest ;
• Superannuation and other investments that breach ethical principles ;
• Life insurance and income protection insurance ; and
• Western-style traditional wills and estate planning . In the case of debt and interest , this is a difficult area given Australia ’ s addiction to home ownership and home loan mortgages .
Other options are to rent or buy lower-cost homes using cash savings , typically in outer metropolitan or regional areas ( which is not a bad idea because doctors ’ incomes are usually higher in those areas ). As a practical matter , this means many suburbs in Melbourne and Sydney are out of reach . There are alternatives to the traditional home loan mortgage .
One involves the capital provider sharing in the capital gain expected to accrue to the capital recipient . And another involves a ‘ lease-toown ’ transaction , where the property is leased for an agreed annual rent and , at the end of the ( very long ) lease , the owner transfers the property to the lessee . Superannuation and other forms of investing can also be problematic . Some Muslim
Islam has rules that need to be taken into account when financial planning .
TERRY McMASTER
doctors just avoid the issue . They do not pay super contributions despite the overwhelming tax incentives because of concerns about what comes next . That is , how will the super fund invest their benefits ?
However , the better question to ask is how do you make sure the super fund invests in line with your religious beliefs and personal philosophies ?
For example , the classic “ conservative ” investment option emphasises fixed interest securities , which are inconsistent with Muslim beliefs . It ’ s quite a restriction because
LIKE MEDICINE , FINANCIAL PLANNING WORKS BETTER WHEN THERE IS GENUINE UNDERSTANDING AND EMPATHY BETWEEN ADVISER AND CLIENT , OR DOCTOR AND PATIENT .
some funds will have as much 90 % of benefits invested in fixed interest and similar securities . Some alternatives include the following :
• A self-managed super fund investing into appropriate ( and debt-free ) investments , for example , a block of land expected to increase in value over time ;
• The ‘ ethical ’ investment option available at many large retail funds and industry funds ( we prefer industry funds because of their not-for-profit status ); or
• Crescent Super ( Crescent Wealth ), a large retail super fund specialising in Islamic investments for Muslim members ( and non-
Muslim members interested in ethical investments ). Life insurance is problematic , and I am truly worried for many of my uninsured Muslim doctors .
The view in Islam generally is , one should not engage in commercial transactions concerning things one does not own , such as one ’ s life or health , and these matters are best left in God ’ s hands .
My statements of advice play it safe by recording my concerns and standard secular recommendations and then stating that I understand my client has a religious and philosophical concern about risk insurances and therefore will not act on my advice .
Wills and estate planning are complex . Islamic law contemplates wills and sets out who will inherit , based on blood relationships and gender .
Succession has a male bias and favours sons , brothers and husbands , but also protects daughters , sisters and wives .
Often two-thirds of an estate is distributed under strict , set rules , and the remaining onethird is distributed more flexibly , in line with the will-maker ’ s individual preferences .
Like medicine , financial planning works better when there is genuine understanding and empathy between adviser and client — or doctor and patient .
Sometimes the best advice can be a referral to a person who is better at a particular subspecialty .
Thankfully , medicine is a referral-based profession . All doctors recognise the inherent professionalism of a financial planner saying , “ I know someone who can help you more than I can ”. That advice is truly in their best interests . ●
Mr McMaster is a solicitor and accountant in Melbourne , Victoria . The advice in this article is general . Readers should seek professional advice before making financial decisions .
Got a good ‘ webside manner ’?
IT may already seem like medicine is overflowing with sub-specialties and sub-sub-specialties , from urogynaecology to paediatric nephrology . Well , brace yourself . There ’ s another on the way : medical virtualism .
According to doctors writing in the Journal of the American Medical Association , this will be a new subspecialty devoted to telehealth .
Medical virtualists will almost exclusively practise using videolink , or perhaps virtual reality .
It may sound like the pipe dream of a computer geek , but as the authors point out , critical care wasn ’ t considered a specialty in the US until about 1980 . Technology is a good source of new specialties , they say . Think about interventional radiology and robotic surgery .
So , what exactly would a medical virtualist do ?
They would focus on conditions particularly well-suited to telehealth , such as minor ailments that just require advice , and managing chronic diseases , where patients need regular assessments but travelling to a clinic for every appointment would be burdensome .
The virtualist would be trained to monitor health indicators , such as blood pressure , remotely . They would also require a friendly “ webside manner ”, say the authors .
Interestingly , the main type of medical virtualist they describe is comparable with a GP .
And they suggest that : “ Based on early experience in primary care ... 30-50 % of visits could possibly be eligible for a virtual encounter . This could be amplified when coupled with home care and remote monitoring devices .”
Psychiatry could also move into the realm of virtual specialists , given that psychiatrists rely less on physical examinations .
Neurology is another specialty where the virtualist could take off — neurologists are already assessing CT scans remotely as part of mobile stroke units , the authors point out .
And what about surgical virtualists , who control robot surgery from hundreds of kilometres away ? It may sound far-fetched , but it is on the horizon .
“ If advances in technology continue and if rigorous evidence demonstrates that this technology improves care and outcomes and reduces cost , medical virtualists could be involved in a substantial proportion of health care delivery for the next generation ,” the authors conclude .
However , early adopters will need to work with the wider profession to set training standards and certification for medical virtualists , they advise . Coming soon : the Royal Australian College of Virtualists . JAMA 2017 ; online .
www . australiandoctor . com . au 15 December 2017 | Australian Doctor | 11