Create a Written Plan
I’ve been interviewing experts in physician career transition for over a year. So, I thought it important to discuss how to prepare financially. For many of you, loss of income is one of the big fears that stops you from even considering a change.
Much of that can be ameliorated with good planning. So, I decided to get an expert on the show to help us with that issue. My guest is a financial expert who works exclusively with physicians and their personal finances.
Ryan Inman runs Physician Wealth Services , a fee-only financial planning firm devoted to the financial well-being of physicians. He was motivated by witnessing how vulnerable his wife was to poor financial advice during residency. And, he was shocked at how many advisors tried to take advantage of her and her peers.
To meet the needs a much larger audience than those in his backyard, Ryan later created Financial Residency. It’s a podcast, and associated Facebook group, that serves hundreds of attendings, residents, and their spouses frustrated with their financial challenges.
Ryan’s podcast teaches financial concepts so you can protect and grow your assets. Furthermore, he teaches you to shield yourself from insurance agents, stock brokers, fee based financial planners, and lenders that attempt to sell you financial products and services you don’t need.
Financial Considerations When Planning a Change
It’s important to be very deliberate when changing careers. Here are some basic steps to follow as you prepare:
Step 1: Consider your ideal life. What is the ultimate goal of switching careers?
Step 2: Write your plan. If it’s written, you’re much more likely to achieve it.
Step 3: Avoid lifestyle creep and reduce debt, if possible.
Step 4: Think about the financial implications of leaving your current position. How does leaving affect insurance policies and retirement accounts?
Common Financial Mistakes Made by Physicians
At the end of our interview, Ryan spent a few minutes listing some of the most common financial mistakes made by physicians.
Often, because of years of delayed gratification, physicians adopt a savings rate that is too low. And they don’t seem to understand the concept of compounding: as it affects growth of both savings and debt.
So, Ryan recommends that physicians prepare by saving at least 20 percent of take-home pay. And, avoiding lifestyle creep can really help mitigate long term financial disasters.
We didn’t discuss this at length, but I’d recommend you have a financial planner like Ryan prepare some financial projections. Compare your current salary and benefits to the new career you’re considering 5 to 10 years out, so you can see the full impact of your decision.
Ryan’s podcast addresses dozens of other financial issues, particularly relevant to physicians. Check out financialresidency.com or go to your favorite podcast app and search for Financial Residency. You’ll learn a lot.
And, if you need a financial review and plan, check out the services at Physician Wealth Services. It is strictly fee-only, the most unbiased approach to financial planning. He and his team will NOT try to sell you annuities or life insurance. Ryan can really understand your unique circumstances.
Resources for Today’s Episode:
Financial Residency Facebook Group
Physician Finance Group on Facebook
Doctors Unbound Podcast with David Draghinas
Thanks to our sponsor…
We appreciate the UT Physician Executive MBA program for sponsoring the show. It’s an outstanding, highly rated, MBA program designed for working physicians. It might be just what you need to prepare for that joyful, well-paying career. You can find out more at vitalpe.net/physicianmba.
Thanks again for listening. I hope to see you next time on Physician NonClinical Careers.
As always, I welcome your comments and feedback.
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Podcast Editing & Production Services are provided by Oscar Hamilton.
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