LIFEHACKING PHYSICIAN FINANCES Navigating the Financial Transition - - PowerPoint PPT Presentation

LIFEHACKING PHYSICIAN FINANCES

Navigating the Financial Transition from Medical School into Residency

COLIN WIENS, MBA, CFP REGIONAL DIRECTOR & SENIOR FINANCIAL ADVISOR LARSON FINANCIAL GROUP

ADVISORY SERVICES OFFERED THROUGH LARSON FINANCIAL GROUP, LLC, A REGISTERED INVESTMENT ADVISOR. SECURITIES OFFERED THROUGH LARSON FINANCIAL SECURITIES, LLC, MEMBER FINRA/SIPC

• 1. You’re making money! Now what?!
• 1. Key Financial Habits
• 2. Developing a Spending Plan
• 2. Investment Basics
• 1. Investing during Residency
• 2. Investing in yourself
• 3. The Financial Services Industry

Lifehacking Roadmap to Wealth

ADVISORY SERVICES OFFERED THROUGH LARSON FINANCIAL GROUP, LLC, A REGISTERED INVESTMENT ADVISOR. SECURITIES OFFERED THROUGH LARSON FINANCIAL SECURITIES, LLC, MEMBER FINRA/SIPC

Spending Plan

• 5 Main Categories:
• 1. Giving
• 2. Saving
• 3. Living
• 4. Debt Reduction
• 5. Taxes

ADVISORY SERVICES OFFERED THROUGH LARSON FINANCIAL GROUP, LLC, A REGISTERED INVESTMENT ADVISOR. SECURITIES OFFERED THROUGH LARSON FINANCIAL SECURITIES, LLC, MEMBER FINRA/SIPC

Spending Plan

• Prioritize Savings:
• Cash reserves (3-6 x monthly expenses)
• Debt repayment plan
• Bad debt
• Student loans
• Long term savings

ADVISORY SERVICES OFFERED THROUGH LARSON FINANCIAL GROUP, LLC, A REGISTERED INVESTMENT ADVISOR. SECURITIES OFFERED THROUGH LARSON FINANCIAL SECURITIES, LLC, MEMBER FINRA/SIPC

Financing a Home Purchase

• Consider renting during residency (minimum 5 year period)
• $165,000 mortgage – 30 year fixed interest @ 4.5% = $836/month (+H/O ins +Taxes)
• After 3 years = $8,850 in principal paid down
• After 5 years = $15,135 in principal paid down
• Estimated transaction costs = 10% = $16,500 - $15,135 equity = $1,365 loss
• Consider how a home purchase will impact long term planning

ADVISORY SERVICES OFFERED THROUGH LARSON FINANCIAL GROUP, LLC, A REGISTERED INVESTMENT ADVISOR. SECURITIES OFFERED THROUGH LARSON FINANCIAL SECURITIES, LLC, MEMBER FINRA/SIPC

Investing During Residency

• Don't be bothered by not being able to invest during this season.
• If you are able to do ANY long-term investing, maximize:
• Matched employer retirement plans (403(b), 401(k), etc) = 50% or 100%

rate of return

• Tax-efficient investment accounts, especially tax-free accounts.
• Roth IRA contributions
• Max contribution - $5,500 per person.
• Able to contribute to prior year, up to tax filing deadline.
• Roth IRA conversions

ADVISORY SERVICES OFFERED THROUGH LARSON FINANCIAL GROUP, LLC, A REGISTERED INVESTMENT ADVISOR. SECURITIES OFFERED THROUGH LARSON FINANCIAL SECURITIES, LLC, MEMBER FINRA/SIPC

Disability Insurance Strategy

You’ll likely spend 7-12 years of training (plus the cost of student loans) to go into practice:

• Physician Specific (specialty specific) Disability Insurance
• Pays out a portion of your future income ($25,000/month of income may

pay out $15,000 - $17,000/month of tax-free income)

• Price is based on age/health when you purchased the policy

ADVISORY SERVICES OFFERED THROUGH LARSON FINANCIAL GROUP, LLC, A REGISTERED INVESTMENT ADVISOR. SECURITIES OFFERED THROUGH LARSON FINANCIAL SECURITIES, LLC, MEMBER FINRA/SIPC

$130,845 $227,896

$0 $50,000 $100,000 $150,000 $200,000 $250,000 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57

Wait for Disability Insurance?

Age 26 Age 33

Purchase $5,000 as PGY I Purchase $5,000 post Graduation Increase @ 35 to $12,500 for family, kids, etc

Disability Insurance– Own Occupation

Double Dip Not working Two Year

3 2 1

AETNA, Hartford, etc UNUM, Northwestern Mutual Principal, Guardian, MetLife Ameritas, Standard

ADVISORY SERVICES OFFERED THROUGH LARSON FINANCIAL GROUP, LLC, A REGISTERED INVESTMENT ADVISOR. SECURITIES OFFERED THROUGH LARSON FINANCIAL SECURITIES, LLC, MEMBER FINRA/SIPC

Financial Services Industry

INSURANCE Northwestern Mutual Guardian Principal MetLife MassMutual COMMISSIONED INSURANCE BANK/WIREHOUSE Edward Jones Merrill Lynch (BOA) Wells Fargo SunTrust COMMISSIONED INVESTMENTS CONSULTANT Independent Advisor FEES PAID BY YOU NO KICKBACKS FROM INVESTMENTS

Thank you for attending… Colin Wiens

Regional Director / Senior Financial Advisor (m) 407-760-3323 (o) 863-940-2820 Colin.Wiens@larsonfinancial.com