Medical Professionals
Physicians
Healthcare has seen many changes over the last several years and continues to evolve. New legislation, loss of autonomy, declining income and increased liability are all symptoms of ongoing change in the healthcare community. And while you may have less control over some aspects, one area that you can take control of is planning for a more secure financial future.
Make Time to Focus on Your Financial Health
$190,000
Average education debt for recent medical school graduates
40,000 hours
Estimated time Physicians spend on education and training which usually doesn’t include any financial education
Only 56%
Amount of income physicians nearing retirement are on-track to replace
Source: Association of American Medical Colleges, Annual Survey, 2016.
Fidelity Investments, Physicians’ Savings Behaviors and Retirement Readiness, 2014
Start Early to Go Further in Life
Start Early to Go Further in LifeThere’s no question that the earlier you start planning and saving, the better prepared you’ll be. But as a medical professional, you face added challenges. These challenges include a shorter overall earning period, resulting from the time spent on education and training, as well as starting your career with a large amount of debt coupled with an initial lower starting salary. In addition, delayed retirement savings means missing out on the benefits of compound interest.
As you create your plan, keep in mind these financial focus areas:
Protection
Your income is often your most valuable asset. Protect yourself and those depending on you with disability, life and long-term care insurance. You may have some coverage through work, but that often isn’t enough.
Wealth Accumulation
To meet your goals, start early and save often. That’s great advice but for medical professionals with large debt, the immediate focus is often to repay outstanding loans rather than invest. It’s important to focus on smart budgeting along with disciplined savings to make the most of your income.
Retirement Planning
Retirement may be far off, but it’s important to prepare now. Many medical professionals face a potential retirement income shortfall. The maximum social security benefits along with the maximum IRS contribution limits on retirement plans replaces a smaller percentage of income for high earners. That’s why it’s important to explore other retirement savings vehicles.
Estate Planning
Estate planning is not only for the very wealthy. It’s also important for medical professionals who have individual practices or are part of a group practice and have a significant amount of business assets.
Business Planning
Many medical professionals are also business owners who are busy running a thriving practice. Between seeing patients, managing staff and handling never-ending paperwork, it’s easy to put off critical financial planning that could help you and your practice.
Practice Owners
You’re a medical professional and an entrepreneur. You’re successful, that’s why you’re busy. With the many moving parts that come with owning your own business and your main duty of caring for your patients, some important responsibilities may fall through the cracks. We can help alleviate the stress of owning a business. We have been helping entrepreneurs with their savings and risk diversification, current portfolio reviews, protection needs, key employee retention and bonus designs, college savings plans, business valuation and succession planning and more.