Preventative care for your finances.
Medical professionals often face complex financial situations. Between high student loans, delayed earnings, the need for additional insurance, and the risks associated with the job – finances can quickly become complicated. How do you decide what loan forgiveness program is the right fit? Should you use a physician loan to purchase a home? Should you purchase additional insurance (malpractice, life, disability, umbrella, etc.) over what is offered through your employer? How much of your savings could you safely use to open your own practice? Working on a financial plan and with a financial advisor who understands your unique needs and personal goals can make answering each of these questions much more straightforward. In addition, it can help reduce stress around your financial situation.
As a medical professional – we can help you:
- Create a budget and savings plan
- Navigate student loan repayments, and in some instances, determine if repaying loans at a faster pace may prove beneficial
- Navigate the complexity of public service student loan forgiveness programs
- Understand benefits, such as Physician Mortgages, that may be available
- Evaluate insurance coverage (malpractice, disability, life, umbrella, etc.) and if you may benefit from coverage above what their employer offers
- Invest wisely for your retirement
- Develop a tax strategy to reduce your tax burden
- If facing burn out, determine if and how long of a sabbatical is financially doable
- Understand the financial complexities behind opening your own business and how this may affect your personal financial situation
- Identify a financial roadmap to achieve your long-term goals
Your financial check-up
Do you have your finger on the pulse of your finances? Are you making the most effective financial decisions for the long-term? Work with an advisor to discover the right plan of care for your finances.
Questions Often Asked by Medical Professionals
Should I pay off my student loans faster than required?
If you are eligible for loan forgiveness, you may want to pay the minimum required to have more of your loan forgiven. If you are not eligible, then paying a higher amount than required can help you save on future interest. This also depends on your loan repayment program, as your financial situation and interest rate also come into play when discussing whether you should put additional funds into student loan repayments. Depending on your situation and your rates, that money could be more effective in your savings or investment accounts. Working with a financial advisor can help you determine the most beneficial way to allocate any additional funds you may have, and which loan repayment program would be most beneficial to your situation.
Do I have to pay taxes on any student loans that may be forgiven?
This varies depending on which student loan repayment program you qualify for. If forgiven amounts are considered additional income, the amount may be taxable as additional income in the year the loan is forgiven. For example, if you have $150,000 forgiven, you may end up with approximately $50,000 in additional taxes depending on your individual income tax bracket. Understanding whether or not your forgiven amount will be considered taxable income and planning ahead if it will, is very important when entering into a loan forgiveness program. .
What insurance coverage do I need to protect against risks associated with the medical field?
Life, disability, malpractice, health, home/rental, auto, and umbrella insurance are all types of insurance coverage that those in the medical field should consider. Employers may offer some coverage, but a financial plan can help you determine if the amount of coverage is enough to protect your family and financial situation. When it comes to your insurance, home/rental, auto, and health insurance do not need much of an explanation. You likely also already have life, disability, and malpractice insurance through your employer. Unfortunately, the amount of life and disability insurance offered by an employer is usually not enough if the unexpected were to occur. Disability insurance protects against your income in the event you cannot perform your job and usually covers 60% of lost income. Is this the coverage offered through your employer and would you need any supplemental insurance to cover your expenses? Life insurance is not about protecting yourself, but about your loved ones. Would the amount of life insurance offered by your firm cover any expenses related to your death in addition to help your family cover everyday expenses that depended on your income? Lastly, umbrella insurance is usually not expensive and can protect you in the event your other insurance (home, auto, etc.) is not enough. Your advisor can help you evaluate your current coverage and identify any gaps in coverage to either upgrade your existing coverage or recommend additional coverage where it may be of benefit.
Examine your benefits.
Are you taking advantage of both your workplace benefits and additional benefits available to medical professionals, such as Physician Mortgages or loan forgiveness plans?
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