As specialists in the financial planning needs of medical professionals, we have worked with physicians in every phase of their ‘financial life.’
We understand that as a physician you pursue extended training well in excess of most other professionals. During this time you work very long hours, make relatively little money, and may be forced to incur significant debt. These are also the years when many young professionals are going through great personal change: getting married, purchasing a home, starting a family. Now is when you should be establishing your financial foundation. The habits you develop here, good or bad, will have a significant impact many years into your future.
Upon completion of residency or fellowship, a medical professional’s financial situation typically changes in very short order. Managing that transition is critical to maintaining a solid financial footing. If you established a solid foundation during your training years this will be a great opportunity to build and grow on that foundation. If you are just now getting started, or playing catch-up, it is now time to construct the pillars of your financial future. There are many important decisions to be made and many temptations or challenges that can sidetrack you as years of pent-up spending anxiety can often lead to costly choices.
As your practice matures you will enter the prime income earning years of your life. As a successful physician your discretionary income will become your most valuable resource. How you deploy this resource during these years will be the determining factor on whether you are able to reach your most important financial goals. In many ways your financial decisions will impact not only your life the but quite possibly the lives of future generations. Maintaining a balance between enjoying today and saving for tomorrow is essential to flourishing through these times.
Transitioning into retirement can be a time of great anxiety. Many physicians exit their practice and never look back while others gradually phase into retirement. Depending on the individual and their specialty either path is a possibility. But both take planning and guidance as answers to many questions are needed: