As a physician in your thirties, you may be signing your first attending contract while paying down medical school debt, buying a home and starting a family. While you are likely to have a significant increase in income, years of delayed earnings make the choices you make now especially important. This is the decade in which your career success can enable you to build long-term financial security. Like all projects that seem overwhelming, starting is the most important step. We recommend breaking this punch list into parts and tackling one every few months. If you are considering what comes next in your medical career, our team is available for a confidential, complimentary consultation to provide greater clarity around the path ahead.
1. Turn Your First Attending Paycheck into a Plan
To prevent lifestyle expenses from consuming your increased paycheck, raises, or bonuses, consider automating a portion of each paycheck—potentially 20%, depending on your circumstances—to accounts earmarked for financial priorities such as debt payments, an emergency fund, a home down payment, and retirement savings. This may mean directing part of that automated savings to retirement accounts such as a 401(k) or 403(b) plan offered by your employer, a Roth IRA if you are eligible, or a SEP IRA if you have self-employment income. If you use a 20% savings target, plan lifestyle spending around the remaining 80% of your paycheck. If your take-home pay varies because of call, locum tenens, or productivity compensation, consider basing recurring monthly expenses on your most dependable income, which may be your base pay.
2. Choose a Student-Loan Strategy Deliberately
The fastest student-loan repayment strategy is not always the best one. When deciding how to manage your student loans, consider the repayment options and benefits available to you, along with how each fits your career, finances, family goals and comfort with debt. Before refinancing federal loans, it is also important to understand which borrower protections and forgiveness options would be lost. If you plan to pursue loan forgiveness, keep copies of your employment certifications and payment records in one organized place.
3. Create Cash Reserves for More Than Household Emergencies
Your cash reserves should account not only for an unexpected home or medical expense but also for the possibility that changing jobs will take longer than expected. Physicians can face credentialing delays, restrictive covenant transitions, relocation costs, unpaid parental leave, contract disputes and gaps between positions. A larger reserve may also be appropriate when the household depends heavily on one physician’s income or when a substantial portion of your compensation is variable.
4. Protect the Income Your Financial Plan Depends On
Your ability to practice medicine is likely your largest financial asset. Employer disability coverage may be capped, taxable or lost when you leave your job, so consider reviewing whether individual own-occupation disability insurance is appropriate for you. Pay close attention to how the policy defines disability, residual or partial disability benefits, future purchase options and exclusions. Also, take a look at whether the policy protects the specific duties of your specialty. Coverage purchased while you are younger and healthy may also be easier to obtain.
5. Read Your Employment Contract Beyond the Headline Salary
Keep in mind that compensation is only one part of an employment offer. It is also important to consider work-RVU formulas, quality incentives, call responsibilities, outside-work restrictions, repayment provisions, termination notice, restrictive covenants and what happens to unpaid bonuses when employment ends. It is also wise to confirm whether malpractice coverage being offered is occurrence-based or claims-made, as well as who is responsible for tail coverage.
6. Create a Back-Up Plan for Those Who Depend on You
If others depend on you financially, consider whether life insurance and an updated estate plan are appropriate for your circumstances. As your income and family responsibilities grow, consider coordinating life insurance with an estate plan that may include wills or trusts, guardianship provisions, durable powers of attorney, healthcare directives, and current beneficiary designations. The goal is not simply to replace your income; it is to give those you trust clear instructions and access to resources they would need if you became unable to manage your affairs.
7. Plan for a Home Without Crowding Out Retirement
A larger home, private school tuition, childcare, and college savings can all become meaningful goals. Still, commitments like these should also be tested against your retirement savings and debt reduction. Decide what you can comfortably support with reliable income rather than assuming every future bonus or productivity year will be strong. When purchasing a home, be aware that special mortgage programs for physicians may offer benefits such as lower down payments or flexible underwriting, although their interest rates, fees, and other terms should be compared with conventional loans.
8. Prepare for Estimated Taxes if You Receive 1099 Income
A taxable investment account can give you greater flexibility if you change employers, reduce your hours, or need money before retirement. Consider keeping your investments diversified, particularly if you own employer stock, an interest in a medical practice, or real estate. If you receive 1099 income, consider setting aside money for estimated taxes and keeping your business and personal expenses separate.
9. Check Your Credit
A lower credit score or adverse credit history may affect borrowing costs and, depending on applicable law and the type of coverage or position, may also be considered by certain insurers or employers. For information on how to request your credit reports and understand and improve your score, click here.
10. Learn About Investing
Now that you are starting to save, you need to learn the basics of investing. You should know how to evaluate your investment performance and determine whether your asset allocation fits your needs. Let us know if you would like to participate in a Basics of Investing workshop or want us to take a second look at how you’ve structured your investments. If you are ready to open an investment account and take advantage of the power of compounding, watch our short video here to get started.
11. Make Financial Planning a Regular Family Conversation
Consider setting aside time at least once a year to review your debt, savings, insurance, estate documents, career plans and the goals that matter most to your household. Written priorities make it easier to decide how to use a bonus, whether to accept a new position or how much lifestyle growth is reasonable. By the end of your thirties, the goal should not be financial perfection but rather to create a long-lasting system that works for you, even when life and your practice become more demanding.
No matter where you are in your financial journey, thoughtful planning can help you prepare for what lies ahead. Explore our tailored financial tips for those in their forties, fifties, sixties, and seventies to learn more about the key priorities and planning opportunities to consider during each decade.
If you could benefit from a conversation with our advisory team, we would be happy to provide a complimentary consultation.
Important Disclosure: Beacon Pointe Advisors, LLC (“Beacon Pointe”) is an investment adviser registered with the U.S. Securities and Exchange Commission. Registration does not imply a particular level of skill or training. Beacon Pointe does not provide legal or tax advice. This material is provided for general informational and educational purposes only and is not intended as individualized investment, tax, legal, accounting, insurance, healthcare, or employment advice. The considerations discussed may not apply to every individual and depend on personal circumstances, applicable law, and the terms of relevant employment, ownership, compensation, benefit, insurance, and estate-planning documents. You should consult the appropriate legal, tax, insurance, healthcare, and other professional advisers before taking action. Investing involves risk, including the possible loss of principal. Beacon Pointe is not responsible for errors or omissions in materials accessed through links to third-party websites and does not necessarily approve or endorse the information provided in those materials.