We moved to 415 Detroit St 100 Ann Arbor MI 48104!
You just spent the past 10-14 years getting your undergraduate degree, medical degree and surviving your residency program. You’re ready to start your career and take on the world. While school prepared you for your field of choice, it didn’t prepare you for all the financial decisions you must now make.
Your first few years as a doctor are when you should start the financial planning process to prepare you for your future peak earning years. Below are things you should consider in these first years of your career:
❖ Reassess student loans – in some cases there is loan forgiveness for doctors working in low-income, federal or tribal facilities
❖ Review your spending patterns – most common mistake – cost of living grows to the same size as your income – bad consumption habits - wait to buy large ticket items until after 1st year of practicing
❖ Manage your cost of living – where you live has an impact on your monthly budget
❖ Plan for the long-term - be aggressive early in career – watch for impact of taxes
As you start moving forward in your field, there are some financial planning choices you will have to make. Having a team in place that you can trust is key to helping assist in making the proper decisions for you.
❖ Create a budget - Separating personal and professional expenses
❖ Create an emergency fund of 3 - 6 months of expenses
❖ Get the proper insurance coverage so that your expenses are covered and your personal goals are still plausible in case of unfortunate events
❖ Make financial goals like retirement, children’s education, vacation home and work towards achieving them by investing properly and reviewing investments regularly
❖ Work with an advisor whose goals are aligned with yours, preferably a fee based advisor where the basis of the relationship is your financial plan
As you develop your personal financial plan, continue to grow in your career, and toward your goals, there are things that can happen which could derail or slow down you and your family’s success.
❖ Medical liability and potential lawsuits
❖ Long term sickness or disability
❖ Increased tax burden or changing tax laws
❖ Unexpected or Accidental Death
You have chosen to work in a field that is noble and well respected. You have high earning potential and need to ensure your money works for you so that you can take control of your life and achieve your goals.
Your financial plan should look at the short- and long-term goals for you and your family. The trusted advisor’s goals should be aligned with yours and empower confidence at all times. Make sure he or she is a Fiduciary and not only willing, but can take on that responsibility for you.
A bunch of numbers and graphs that lead to a sales presentation for insurance, real estate, or the trendy investment of the day is not a financial plan. A great financial plan should make you feel empowered and confident in your future.
Contact: Mark Minder, RFCⓇ, MBA
DWG is the 401(k) arm of Darden Wealth Group. DWG does not give tax or legal advice. This is information only and does not constitute advice. Please consult your financial advisor or tax professional for information specific to your situation.