A Financial Advisor for healthcare professionals

Many doctors, surgeons, and physicians will find themselves in the top 10% of wage earners, paying higher tax rates, and running into challenges with fully realizing credits and claiming deductions. Should an individual own or partner in a practice, integrating personal and business taxes presents an added challenge. Physicians are at greater risk of lawsuit, necessitating the introduction of asset preservation strategies within the scope of the financial plan.

As a financial advisor who partners with CPA’s, Estate Lawyers, and other financial professionals, I can help navigate the waters specific to a career in healthcare:

• Charitable Giving
• Evaluate options to tackle student loan debt
• Consolidate investment accounts at one institution with a unified investment strategy
• Review a benefit package and discuss pros and cons of participation in certain programs
• Retirement planning and income projections during retirement
• Discuss best uses of extra cash
• Asset preservation strategies
• Simplifying and organizing your financial life with a cohesive financial and investment strategy
• College planning and education savings goals
• Managing retirement plans at work
• Evaluating your insurance coverage such as life, disability, umbrella liability
• Financial modeling
• Tax-efficient investing and planning
• Estate Planning considerations

Debt Management and Early Career:

1. How can I manage my high student loan debt while building my career?

There are several strategies to tackle student loan debt while starting your career. These include:

• Income-driven repayment plans: These plans can lower your monthly payments based on your income.
• Public service loan forgiveness: If you work in public service for ten years, your remaining federal student loans may be forgiven.
• Student loan refinancing: This can sometimes get you a lower interest rate, but it's important to compare options carefully and consider any potential downsides.

2. Is it wise to refinance my medical school loans?

Refinancing can make sense if you can qualify for a lower interest rate. However, consider potential drawbacks like losing eligibility for federal loan forgiveness programs or extending the repayment term. Weigh the pros and cons carefully before refinancing.

3. Is a physician practice loan worth it to start my own practice?

This depends on your financial situation, business plan, and risk tolerance. Carefully analyze the financial feasibility of your practice before taking out a loan. Consider alternative funding options like grants or partnerships.

Investing and Wealth Building:

4. What are the best investment options for physicians with high income?

There's no one-size-fits-all answer, but consider a diversified portfolio with various asset classes like stocks, bonds, real estate, and alternative investments. Consult a financial advisor for specific recommendations based on your risk tolerance and financial goals.

5. How much should I be saving for retirement as a physician?

Aim to save at least 15-20% of your income for retirement. Physicians often have higher earning potential, so consider saving 25% or more for a comfortable retirement. Use retirement calculators and consult your financial advisor for personalized estimates.

6. Should I invest in a tax-advantaged retirement account like a 401(k) or IRA?

Absolutely! Max out your contributions to tax-advantaged accounts like 401(k)s and IRAs to benefit from tax deductions and compound interest. Explore available options within your employer's retirement plan and choose suitable IRAs based on your income and investment goals.

7. Is real estate a good investment strategy for physicians?

Real estate can be a good investment, but it also involves risk and ongoing management. Research the market carefully, understand the responsibilities involved, and consider diversification before investing in real estate.

Financial Protection and Confidence:

8. What type of disability insurance do I need as a physician?

Choose disability insurance that covers your income and expenses in case of illness or injury. Consider specific needs like benefit period, elimination period, and own-occupation riders for enhanced protection.

9. How much life insurance do I need to protect my family?

Generally, aim for life insurance coverage that's 5-10 times your annual income to help ensure your family's financial security in case of your death. Consider factors like dependents, debts, and future expenses when calculating your desired coverage amount.

10. How can I help protect my assets from lawsuits?

Consult with an attorney to explore asset protection strategies like umbrella insurance and appropriate business structures for your practice. Much of qualified savings is protected from creditors, but taxable savings accounts may not be. In the state of Texas, taxable savings vehicles like variable life insurance and Indexed annuities are also protected from creditors.

The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. Any opinions are those of Jordan R. Hampton and not necessarily those of Raymond James. Expressions of opinion are as of this date and are subject to change without notice. Investing involves risk and you may incur a profit or loss regardless of strategy selected, including diversification and asset allocation.

Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.

Insurance policies have exclusions and/or limitations. The cost and availability of insurance depends on factors such as age, health and the type and amount of insurance purchased. As with more financial decisions, there are expenses associated with the purchase of insurance. Guarantees are based on the claims paying ability of the insurance company.