PracticeLink Magazine

Spring 2019

The career development quarterly for physicians of all specialties, PracticeLink Magazine provides readers with feature articles, compensation stats, helpful job search tips—as well as recruitment ads from organizations across the U.S.

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PracticeLink.com S PRIN g 2019 29 Make a Difference OUR MISSION is to care for the people in our communities. Not only do we care for our neighbors, friends and families, we care for each other. Our teams are committed to continuous improvement and lifelong learning through career development, cutting- edge medical research and working with patients on their personal health journeys. Now recruiting for Allergy & Immunology, Cardiology, Cardiovascular Clinician Scientist, Dermatology, General Neurology, Hospital Medicine, IOM Neurology, Neuro-Oncology, Neurocritical Care, OBGYN, Occupational Medicine, Orthopaedics, Pediatric Cardiology, Pediatric Generalist, Radiation Oncology, Rheumatology and Urology Kyle R. Hayman, DASPR Manager, Talent Acquisition kyle.r.hayman@hitchcock.org Learn more at DHProviders.org Claudio: What's another building block of financial security that physicians should consider? Sykes: Risk management is the foundation of your financial future. You've worked tirelessly to get to this point, where your income is going to finally match your efforts. Protecting your future unearned income is essential. Risk management includes: • 3 to 6 months of cash (emergency fund) • Maximum disability policy to help protect your income • Life insurance that totals 12 to 16 years worth of salary Most physicians will probably earn more than $10 million over the course of their careers. What could derail this earning potential is premature death or a disability that prevents you from practicing medicine. To mitigate these risks, consider purchasing a strong life and disability insurance program. Claudio: Should retirement planning be a consideration at this point? Sykes: Absolutely. What we typically see with physicians reaching the end of their residency or fellowship and who are experiencing a big jump in income is that they immediately start putting a massive amount toward their student loan and / or credit card debt and spend the remainder on the "fun stuff" that they've been deprived of for so many years. While being debt-free is a great objective, it's also important to understand the power of compound interest. Money doubles every 10 years if you average 7.2 percent returns on your investments. Your college friends have been funding their retirement accounts for eight to 10 years already; they have a big head start on you. The runway for you to be financially secure by age 60, 65 or even 70 is much shorter than most professionals. However, the good news is that catching up is still a definite possibility. In order to catch up, you should probably be ma xing out you r qualified retirement accounts, such as a 401(k) or 403(b). Begin maxing those out on day one if you can. The challenge for physicians with these retirement accounts is that there's only so many pretax dollars you are allowed to contribute on an annual basis. This will require you to look outside into the "non- qualified" arena to find good places for long-term dollars such as investments, annuities, and cash value life insurance. C re at i n g a f i n a nc i a l pl a n , developi ng r isk ma nagement strategies, maxing out pre-tax retirement contributions, and paying down debt should be the very first steps graduating residents consider in order to create a path to financial security. CHRISTIAN CLAUDIO is a Regional Director of Physician Recruiting with Envision Physician Ser vices. Jerret Sykes, CFP ( jerretsykes.nm.com), is a certified financial planner at Northwestern Mutual in Dallas. Read more about our contributors on page 22.

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