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.
The University of Tennessee Physician Executive MBA Program
I'm very thankful to have the support of the University of Tennessee Physician Executive MBA Program offered by the Haslam College of Business. You’ll remember that I interviewed Dr. Kate Atchley, the Executive Director of the program, in Episode #25 of this podcast.
The UT PEMBA is the longest running, and most highly respected physician-only MBA in the country, with over 650 graduates. Unlike most other ranked programs, which typically have a duration of 18 to 24 months, this program only takes a year to complete. And, it’s offered by the business school that was recently ranked #1 in the world for the Most Relevant Executive MBA program, by Economist magazine.
University of Tennessee PEMBA students bring exceptional value to their organizations by contributing at the highest level while earning their degree. The curriculum includes a number of major assignments and a company project, both of which are structured to immediately apply to each student’s organization.
Graduates have taken leadership positions at major healthcare organizations and have become entrepreneurs and business owners. If you want to acquire the business and management skills needed to advance your nonclinical career, contact Dr. Kate Atchley’s office by calling (865) 974-6526 or going to vitalpe.net/physicianmba.
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.
If you enjoyed today’s episode, share it on Twitter and Facebook, and leave a review on iTunes.
Podcast Editing & Production Services are provided by Oscar Hamilton.
Disclaimers:
The opinions expressed here are mine and my guest’s. While the information provided on the podcast is true and accurate to the best of my knowledge, there is no express or implied guarantee that using the methods discussed here will lead to success in your career, life or business.
Many of the links that I refer you to, and that you’ll find in the show notes, are affiliate links. That means that I receive a payment from the seller if you purchase the affiliate item using my link. Doing so has no effect on the price you are charged. And I only promote products and services that I believe are of high quality and will be useful to you, that I have personally used or am very familiar with.
The information presented on this blog and related podcast is for entertainment and/or informational purposes only. It should not be construed as medical, legal, tax, or emotional advice. If you take action on the information provided on the blog or podcast, it is at your own risk. Always consult an attorney, accountant, career counsellor, or other professional before making any major decisions about your career.
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