Why Surgeons Need Comprehensive Financial Planning

Sophisticated wealth management for surgeons is something that requires the specialized experience of a financial advisor for Surgeons. Due to the higher income that comes with being a Surgeon, there are added financial complexities that come along with your wealth management and tax planning strategies. 

Oftentimes, having a high income demands comprehensive financial planning. A financial professional who understands the nuances that come with working in the medical field can be a valuable attribute for medical professionals and Surgeons to look for when hiring a financial advisor to oversee your assets. 

Wealth management for surgeons is something that we specialize in.

Increased Wealth Can Place You in a Higher Tax Bracket

As surgical professionals working in a high-earning position, your wealth may be considerably more than most, and you may find yourself in a higher tax bracket. Unless you want to pay more of your earnings to the government, solid tax planning strategies are considered critical components of your financial plan. 

Lowering your taxable income while you are still working is a large reason why there is such a need for comprehensive tax planning strategies for surgeons; without solid strategies in place, you will have less money in your pocket at the end of the day.

One of the best and most advantageous ways to do this is to maximize your pre-tax retirement accounts, such as your 401(k). With these pre-tax contributions, you set aside money before it reaches your paycheck,. It then grows tax-deferred, and when you retire, you will have to pay income tax on any funds you withdraw at your then-current ordinary income tax rate.. 

There are strategies to help you minimize your retirement taxes, such as a Roth conversion or backdoor Roth. This method allows account owners to transfer funds from a traditional IRA or 401(k) to a Roth account, which is much more tax-friendly for retirement distributions and is not subject to required minimum distributions (RMDs). Structuring the transfer in such a way so that you don’t jump tax brackets is something that an experienced financial advisor would be able to help you with. 

There are More Financial Complexities to Your Income

Higher earners inherently have more complexities to their income. Financial planning for medical professionals is certainly no exception either. From bonuse and royalties to bigger fluctuations in wealth, the higher income enjoyed by surgeons also demands more comprehensive and long-term financial planning.

Higher income will undoubtedly lead to better investment opportunities, but those will also come with more complexity and thus a stronger need for comprehensive wealth management. Although your income and financial portfolio may have more nuance and intricacies, there are available advisory services that offer the kind of tailored financial advice that Surgeons and other medical professionals can trust to simplify financial complexity and provide greater clarity. 

Your Goals in Retirement are Unique

Everyone’s retirement plan is going to be a little different, but the retirement goals of Surgeons and other high-earning medical professionals can be unique.

For example, you may want to travel more than the average retiree. Many retired Surgeons have foreign countries they want to visit that they were unable to while working a demanding job in the medical field, and retirement is their time to do just that. 

International travel takes more money and more time, and thus more planning. In order to pursue these types of goals in retirement, surgeons that are nearing retirement should put an emphasis on strong financial planning to help ensure their budget and post-retirement income can support the lifestyle you want to live once you retire. 

Many retired Surgeons still want to volunteer and practice medicine when they retire. Retiring can be a tough change for a lot of people, and many choose to work part-time or just volunteer. Whatever your goals, make sure that you and your financial advisor both understand them and have a comprehensive plan in place to pursue them. 

Transferring Wealth to the Next Generation 

As your family grows, so likely will your wealth. There is going to come a time when you are going to have to decide what you want to do with your estate- this includes everything from your properties, retirement accounts, material possessions, and other investments.

The chances are that you have spent years, likely decades, building your estate and have an idea of how you want your assets to be divided when you die. Transferring wealth to your heirs is a luxury many take for granted and thus do not plan adequately for. 

This is why comprehensive estate planning is an imperative part of your overall financial plan. Working with the right financial advisor for surgical professionals that understands this and puts an emphasis on your estate planning strategies can be very valuable to both you and your family. 

Passing the wealth you have accumulated throughout decades down to the next generation should be an important facet to your financial plan. The sooner you develop an estate and legacy plan to designate your beneficiaries the better. The earlier you can plan your estate and designate any trusts and wills, the more time you will have to make any adjustments and changes that may come up due to significant life events or substantial fluctuations in wealth.

Equitable Advisors, its affiliates and financial professionals do not provide tax or legal advice or services.  You should consult with your personal tax and/or legal advisors regarding your specific situation.

Working with an Experienced Financial Advisor is a Must

wealth management for surgeons

Financial planning can be long and complex regardless of your career or income. But as a Surgeon earning a higher income and working long, demanding hours, the need for a comprehensive plan is even more important. 

There are many different types of financial advisors out there. They may specialize in different areas of finance. As you research prospective financial advisors, working with a financial advisor who has experience managing the wealth of Surgeons and medical professionals should be given high priority. 

Not everyone understands the financial nuances and pressures that come with being a Surgeon. However, at Surgeons Capital Management,  we work exclusively with Surgeons, their families and other professional medical groups and understand their complex financial needs. We strive to provide transparency and lasting value to both you and your family. Contact us today to see how we can help.

Surgeons Capital Management

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Surgeons Capital Management is a private wealth management firm that works solely with surgeons and surgical practices.