Strategic Financial Planning for Your Medical Career

As you embark on your career in medicine, it’s essential to have a solid financial plan in place that allows you to navigate each stage with precision and foresight. We are here to provide that clear direction, ensuring your financial health is robust and resilient through every phase of your journey.

Residency: Establishing a Strong Foundation

During residency, the focus should be on managing finances efficiently despite a limited income. The strategy here is straightforward and disciplined: develop a budget that aligns with your immediate needs while setting the stage for future growth. This budget acts as your navigational chart, guiding you through the complexities of student loans and daily expenses.

“Enjoy what you do and appreciate the opportunity you get to help people as a profession. And remember that the patient is always the most important thing to take care of, more than money. Don’t go buy a new Porsche or new house when you graduate. Try to live like a resident for a few years and save money. This will set you up for future successes. Also, work hard. Take pride in your work.”

-Dermatologist

Crafting a loan repayment strategy is critical. We will explore all available options, such as income-driven repayment plans, to lighten the financial load and give you peace of mind. Just as you provide a wellness checkup, we will provide a financial checkup. At this stage of life securing term life insurance and disability insurance are an important safety net, ensuring you’re prepared for any unexpected events.

First Job: Building on Your Success

Transitioning to your first position is a pivotal moment laden with opportunities. It’s essential to thoroughly understand your employment contract, including salary, benefits, and any loan repayment assistance. This knowledge is your compass, helping you make informed decisions that align with your career goals.

“When negotiating a contract, look at the conditions for leaving a practice rather than just focusing on things like number of call days and absolute salary. Things to look at when leaving are things like noncompete radius, and time, as well as who is going to cover your tail insurance, which can frequently be quite expensive.”

-Orthopedic Surgeon

Initiating contributions to retirement accounts like a 401(k) or Backdoor Roth IRA should be a priority. The power of compound interest is a strategic advantage that we’ll leverage to secure your financial future. Additionally, implementing tax planning strategies will ensure you maximize your income and increase your investment potential. These steps are akin to charting a course that leads to long-term prosperity.

Given the amount of time you have spent in college, medical school, and residency you are likely starting your savings later than you would like. This means you need to save a higher percentage of your income, and you may quickly max out the limit on your retirement plan at work. We can work with you to find tax-optimal solutions to save the necessary amount of money to fully fund your retirement.

“Pay off all high-interest items ASAP. Invest as much as possible as often as possible and never turn down free money (HSA accounts where your employer adds money, retirement that’s matched by your employer – maximize all of this). Ask questions if you don’t understand – find a financial advisor THAT YOU TRUST who can answer them for you.”

-Hospital Internist

Career Advancement: Sustaining Growth

As your career progresses, managing increased income and new opportunities becomes vital. Engaging with wealth management strategies will help you plan for significant purchases or your children’s education. This is about steering your financial ship with precision and purpose, ensuring that growth is sustainable and aligned with your life goals.

As your assets grow your investment approach changes as well. The investment opportunities accessible to you will increase as you start to consider private investments that can enhance return or better manage your risk. These nuances require sophistication that not all advisors can offer.

“Don’t put all your eggs in one basket – diversify. Along this line, don’t risk more than you can afford to lose. This is especially true when considering investing with family or friends, which is not recommended.”

-Surgeon

Estate planning is crucial for securing your legacy. Establishing or updating a will and considering trusts ensures that your assets are protected and distributed according to your wishes. We’ll develop a comprehensive plan that reflects your priorities and provides clarity for your loved ones.

Integrating philanthropy and legacy planning into your financial strategy not only fulfills personal values but also strategically benefits your overall plan. We’ll craft a philanthropic approach that aligns with your passions and enhances your legacy, ensuring that your impact is felt beyond your professional achievements.

Throughout each stage, regular reviews and adjustments to your financial plan are essential. Just as a seasoned captain adjusts the sails to navigate changing winds, we’ll adapt your strategy to reflect your evolving goals and circumstances. Our role is to maintain a steady course, ensuring that your financial health remains as unwavering as your commitment to your patients. Together, we’ll navigate this journey with strategic clarity and decisive action, securing a future that’s both prosperous and fulfilling.

Reach out to us today with any questions or to schedule a conversation—we’d be honored to guide you toward long-term financial success.