Transitioning to Practice: You’re Making Money! Now What?
Posted on January 12, 2021
When you finally make the move from residency to practice, that extra bump in income can feel like the ultimate reward for the years you spent sacrificing dinners out with your friends for ramen at home and vacation getaways for 60-hour workweeks.
While you should celebrate that hit of financial freedom you worked so hard for, it’s also important to be deliberate with how you spend and save your money moving forward. To prepare yourself for the unexpected, dig your way out of debt, and plan financially for the future, partnering with the advisors from Larson Financial Group can help ensure you’re making the best decisions at every step in your career.
Creating a spending plan and sticking to it
The first step toward financial security for any professional is to create a household budget to understand how much money is coming in and how much is going out for monthly expenditures. Once your essential living expenses are covered, you can address where to allocate the remaining funds.
At Larson, we encourage our clients to prioritize a three-step spending plan, especially when transitioning to practice:
- Build up your cash reserves. As moms and dads have said for generations, you need to save for a rainy day. In the event of a layoff, illness or other unexpected obstacle on your career path, three to six months of cash reserves can help cover monthly expenses as you recover financially.
- Create a debt repayment plan. Right now, you’re likely drowning in student loan payments on top of possible credit card debt, car loans and mortgage payments. A financial planner can work with you to develop a plan to pay off bad debt first – such as credit card debt and high-interest loans – before tackling low-interest student loans.
- Start saving for the long term. By meeting with an advisor, you can better save for big-ticket items like a house or for your eventual retirement. Through one-on-one conversations with you, they can determine how much you need to save to live out your golden years how you want and the right financial vehicles to use to get you there.
Choosing the Right Financial Advisor
Choosing someone to help you with financial planning can seem overwhelming. Titles and training programs for financial advisors vary widely and can be confusing.
At Larson, we seek to serve your best interests and peace of mind. Several advisors on our staff are Certified Financial Planners (CFP) who undergo extensive training and pass grueling examinations to provide their clients with the best service in the industry. CFPs must voluntarily ascribe to a code of ethics, including a commitment to act in the clients’ best interest. Financial planning services are provided on a fiduciary standard, with no personal benefit derived from recommending specific investment vehicles.
Larson Financial Planners advise physicians to have a long-term focus on asset allocation, low expenses, and tax efficiency. From residency to retirement, we work with your future goals in mind.
The benefits of working with Larson Financial Group
There are endless investment firms you can work with. However, Larson is one of the few in the industry that’s not only dedicated to healthcare professionals, but also works with them from residency through retirement. Our commitment is to help physicians reach their greatest financial potential, which begins with wise choices in the beginning concerning employment and debt.
From financial contract negotiations to retirement planning and everything in between, our advisors can take care of all your financial planning for one yearly fee. And because our goal is to help you avoid missteps from day one, we don’t charge a fee until you’re done with your training. The earlier you start planning, the sooner you can get on the road to financial security for the rest of your career.
To learn more about our financial services, contact Larson today at 866-569-2450 for your free, no-obligation consultation, or you can connect with an Advisor in our NEW Live Chat at larsonfinancial.com to learn more. Advisors are available between 8am-8pm CST Monday to Friday to assist you.
Larson Financial Group, LLC, Larson Financial Securities, LLC and their representatives do not provide legal or tax advice or services. Please consult the appropriate professional regarding your legal or tax planning needs.