The Cornerstones of Financial Advice and Value of a Physician Focused Wealth Advisor
As a physician, you have dedicated your life to your family, education, skill set, and medical practice. Your financial situation is no doubt an important consideration, but managing your finances can be a challenge, especially if you do not have the expertise and time to handle everything yourself. I’ve noted a few cornerstone topics below that allow physicians to build from a reliable financial foundation.
Setting Financial Goals: The first step in any financial plan is to define your goals. This could be anything from paying off student loans, saving for retirement, determining an appropriate level of insurance coverage, or buying a home. By understanding your goals, you can develop a roadmap for achieving them which provides a guidepost through time.
Creating a Budget: To achieve financial goals many physicians start by determining required savings rate and make recurring deposits to a variety of financial accounts. When we know that our ongoing savings provides adequately for our future then making a budget for day-to-day living becomes easier.
Building an Emergency Fund: An emergency fund is a safety net that helps you cover unexpected expenses such as medical bills or car repairs. A good rule of thumb is to have three to six months of living expenses saved in an emergency fund. An emergency fund allows a physician to pay for short term expenses before disability insurance covers costs.
Managing Debt: Debt can be a significant obstacle to achieving your financial goals. It's essential to understand your debt and create a plan to pay it off.
Investing for the Future: Investing is an essential part of achieving financial independence. Physicians can access a variety of retirement savings vehicles which could include Traditional and Roth IRAs, 401ks, 403bs, 457s, 529 accounts, after tax investing and potentially Defined Benefit plans. Goals, time horizon, taxes and risk tolerance all play a factor in determining an optimal investment allocation which includes asset location.
Monitoring: Like our physical health it is important to monitor our financial health through time. It is not good enough to set up a plan and then ignore it with the hope that we avoid a financially fatal disease.
The Value of a Physician Focused Advisor
A wealth advisor is a financial professional who specializes in helping clients manage their financial well-being. They provide comprehensive financial advice and help clients create a plan for achieving their financial goals. Here are some reasons why a wealth advisor can be valuable for physicians:
Expertise: Wealth advisors have the expertise and knowledge to help you make informed financial decisions. They stay up to date with the latest financial trends and can provide guidance on complex financial matters.
Time-Saving: As a physician, you likely have a busy schedule, and managing your finances may not be a top priority. A wealth advisor can help you save time by managing your finances on your behalf, so you can focus on your profession and personal life.
Objectivity: A wealth advisor can provide an objective perspective on your finances. They can help you make rational financial decisions and avoid making emotional decisions that could be detrimental to your long-term financial goals.
Customized Advice: Wealth advisors provide customized advice that aligns with your unique financial situation and goals. They can help you create a personalized financial plan that addresses your specific needs and objectives.
Accountability: A wealth advisor can help you stay accountable. They can monitor your progress and provide guidance and support to help you stay on track.
In conclusion, managing your finances as a physician can be a challenge, but it's an essential aspect of achieving financial freedom. By working with a physician-focused wealth advisor, you can get the expert advice and guidance you need to achieve your financial goals. As a member of the UMA, you have complimentary access to Physician Wealth Advisors’ (formerly UMA Financial Services) team of financial experts. For more than 30 years, the salaried advisors at Physician Wealth Advisors have been serving physicians and their families. Our expertise in creating customized financial plans as well as tailored investment strategies specifically to fit the needs of the medical community has led us to manage over $1.7 Billion of investment assets for physicians and their families.
If you would like to see what Physician Wealth Advisors can do for you, call 801-747-0800 and schedule your complimentary financial consultation today.