Financial advice for health care professionals at every stage

Health care professionals provide essential services, but one important service to our medical community is trusted financial advice. This applies to everyone, whether they’re starting out as a recent graduate or resident, are mid-career or nearing retirement.

These are demanding careers with unique financial situations. An expert financial advisor can help individuals and business owners navigate complex finances, protect assets, plan for retirement, and ultimately get them on track to achieve long-term financial goals.

Here are some tips I share with my health care clients at different stages of their careers.

Early Career Advice (For medical professionals less than 10 years into practice)

• Build and maintain strong credit — Choose a credit card with low interest rates and good rewards, and use it wisely, aiming for less than 30% of your available credit limit. Set up automatic payments to pay the balance off in full and on time each month. Resist the urge to overspend as your income grows. Check your credit score regularly and report errors and fraudulent activity. Research student loan refinancing opportunities and repayment plans that you may qualify for.

• Implement wealth management strategies early — Automating your savings and putting a portion of your paycheck into a savings or money market account can help build a financial cushion. Contribute to employer-sponsored 401(k)or 403(b) retirement plans — especially if there’s an employer match — and consider opening a Roth IRA to take advantage of tax-free growth.

• Explore physician-specific home loan options — Some banks, like Arvest, offer specialized mortgage programs for physicians. These loans often allow pre-approval with a signed residency contract, require little to no down payment, waive private mortgage insurance and offer competitive interest rates for easy refinancing.

Mid-Career Mindset (For medical professionals approximately 10–20 years into practice)

• Maximize retirement contributions — Increase 401(k), 403(b) and/or Roth IRA contributions and consider using catch-up contributions if you are eligible. Take full advantage of any employer matching and consider deferred compensation plans if they are offered.

• Review and rebalance investment portfolio — As your income stabilizes and your goals become clearer, regularly reassess your asset allocation to align with your timetable, risk tolerance and changing financial priorities, such as college savings or elder care.

• Protect income and build legacy plans — Make sure you have disability and life insurance that adequately covers your current earnings, especially if others rely on your income. Create or update your estate plans, including a will, power of attorney and possibly a trust.

Senior Strategy (For professionals 20-plus years into practice or nearing retirement)

• Conduct a retirement readiness check — Assess projected income streams such as Social Security and retirement accounts to plan withdrawal strategies and determine if you’re on track or need to adjust allocations.

• Reallocate assets strategically — Simplify your finances by paying off any remaining debt, downsizing property and consolidating accounts for easier management. Consider tax strategies for required minimum distributions and health care costs in retirement. If your debts are paid and your dependents are financially independent, consider adjusting large life policies or converting them from term to permanent, or using permanent life insurance as part of an estate or tax strategy.

• Transition planning and exit strategy — If you own a private practice, develop a succession or sale plan. If you are employed, consider phased retirement or part-time consulting. Plan how to transition your benefits, maintain your licensure (if desired), and sustain a personal identity beyond medicine.

Bonus Tip (For all stages)

• Partner with a financial adviser — Private banking services offer personalized financial guidance for medical professionals and can assist you with various needs, ranging from lending services to investment planning to disability and life insurance planning. Many professionals may not realize they could qualify for private banking solutions. While qualifying amounts differ by each financial institution, those who utilize a private banker can expect a more tailored experience than traditional banking provides.

Remember the foundation for long-term financial well-being is built by making disciplined and strategic financial decisions now, adjusting your strategy to fit your personal needs at each stage of your career, and seeking professional financial advice and assistance.

Editor’s note: Teresa Roche is a private banking advisor for Arvest Bank in Jonesboro. The opinions expressed are those of the author.