for physicians: Frequently Asked Questions

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Physicians often face unique financial challenges, including high student loan debt, delayed

earning years, complex tax situations, and demanding schedules. A comprehensive financial plan

helps doctors build wealth, reduce taxes, prepare for retirement, and protect their families.

The best time to start financial planning is during residency. Even small savings and investment

contributions made early can benefit from decades of compound growth.

One of the most common mistakes is lifestyle inflation. As income increases, spending often

rises as well, reducing opportunities to save and invest for long-term financial independence.

Most physicians should aim to save 15% to 25% of their gross income annually, depending on

their age, retirement goals, debt obligations, and current savings.

Common tax-saving strategies for physicians include:

•  Backdoor Roth IRAs
•  Mega Backdoor Roth contributions
•  Health Savings Accounts (HSAs)
•  Tax-loss harvesting
•  Charitable giving strategies
•  Retirement plan optimization

Many physicians benefit from working with a fiduciary financial advisor who understands the

unique financial challenges facing medical professionals and can help coordinate investment,

tax, retirement, and estate planning strategies.

Financial independence occurs when your investments and other income sources can support

your lifestyle without requiring employment income. Many physicians pursue financial

independence to gain more career flexibility and reduce burnout.

Most physicians should review their financial plan annually and whenever significant life events

occur, such as marriage, having children, changing jobs, selling a practice, or nearing retirement.