As a physician, you pour your heart into helping others, but your financial world can feel like a whole different beast—big income potential, tricky compensation, and a schedule that leaves little time to plan. Building a financial plan is like crafting a treatment plan for a patient: it has be precise, thoughtful, and focused on your long-term goals. By weaving together retirement accounts, health savings accounts (HSAs), deferred comp, and asset protection, you can create a solid foundation for your dreams—whether that’s a comfy retirement, a dream home, or a legacy for your family. Let’s dive into a practical, approachable guide to get you there, with some questions to spark your thinking.
Plan for Retirement Like a Pro
Your medical training probably delayed your big earning years, so retirement planning is key to catching up. You’ve got options like 401(k)s, 403(b)s, or SEP-IRAs, which let you save in tax-smart ways (up to $69,000 for 401(k)s in 2025, with extra catch-up contributions if you’re over 50). HSAs are a hidden gem—save tax-free ($4,150 for individuals, $8,300 for families in 2025) for medical expenses now or let it grow for retirement (unlike FSAs, which don’t roll over). Deferred compensation plans, often offered by hospitals, let you stash income for later to ease your tax burden. Ask yourself:
- Which retirement plan fits my setup—solo practice, group, or hospital gig?
- How can an HSA cover my healthcare needs today and boost my retirement tomorrow?
- Could a deferred comp plan help me manage taxes and plan for the future?
Keep Your Wealth Safe
You work hard for your money, so protecting it is just as important as growing it. With risks like malpractice claims or market dips, you need a game plan. Trusts or homestead exemptions can shield your savings from unexpected hits. An independent property and casualty (P&C) specialist can hook you up with disability or umbrella insurance to protect your income and lifestyle. Diversifying your investments across tax-advantaged accounts and other portfolios keeps things steady. Think about:
- What can I do to safeguard my assets from professional or personal risks?
- Are my investments spread out enough to weather economic storms?
- Do I have the right insurance, like disability or umbrella coverage, to secure my family’s future?
Build Your Financial A-Team
A great financial plan needs a solid crew. A CPA who gets physician finances can spot tax savings, like deductions for practice expenses or HSA contributions. An estate planning attorney can set up trusts to protect your wealth and provide for your loved ones. A financial advisor ties it all together—retirement plans, HSAs, and investments—into one cohesive strategy. And an independent P&C specialist makes sure your insurance matches your unique needs. Ask yourself:
- Have I got a team with the know-how to guide my financial journey as a doc?
- How can an estate plan reflect my values and take care of my family?
- Am I making the most of tax deductions to keep more money for my goals?
Make Your Plan Your Own
With the right team and a tailored plan, you can focus on healing patients while your finances quietly support your dreams. Your advisor might suggest maxing out your HSA for long-term growth, while your CPA finds ways to lower your tax bill. Your estate attorney can weave your wealth into a trust for your family, and your P&C specialist ensures your home and assets are covered. Regularly check in on your plan to adjust to life changes, market shifts, or new tax rules. How can you fine-tune your plan to be as efficient as possible?
This blog is provided for general informational purposes only and does not constitute personalized financial, tax, or legal advice. Investment advisory services offered through Tempo Wealth, an SEC-registered investment adviser. Registration does not imply a certain level of skill or training. For more information, please refer to our Form CRS and Form ADV Part 2A.
