Managing finances as a physician can feel overwhelming, especially when transitioning from years of intense training into the responsibilities and opportunities of attending-hood. In this episode, we wrap up our popular three-part series on building financial independence as a physician. We dig into some of the most critical, yet often overlooked, steps in financial planning: avoiding the all-too-common "doctor house" disaster, understanding the impact of your employment contract, and making sure your early career choices build both your future and your present.

There's practical advice about buying (or waiting to buy) a home, keeping flexibility in your career and finances, why estate planning isn't just for the ultra-wealthy, and how splurges on Teslas and boats fit into a healthy financial plan. There's something in this episode for every physician who wants to set a strong financial foundation.

Looking for help with Disability Insurance, Physician Banking, Student Loan Refinancing, Physician Mortgages, Contract Reviews, and more? Check out our "Best of the Best" sponsors page to find a list of the professionals Chad & Tyler team up with for their clients.

You will want to hear this episode if you are interested in...

• 00:00 Steps 9-12 in planning a successful financial future.
• 02:27 Avoid the "doctor house" disaster.
• 09:42 Get your adult paperwork in order.
• 12:03 Update Beneficiaries on your 401(k)s and IRAs.
• 13:10 Review and understand your employment contract.
• 16:53 Build your future, not just your present.
• 20:27 Build financial freedom through smart habits.

How Doctors Can Avoid Pitfalls and Build Lasting Wealth

Physicians fresh out of training often feel pressure to plant their roots immediately by purchasing a home. We caution against making such a significant commitment right away. The first year as an attending is full of transitions, and circumstances can rapidly change: your schedule might be less appealing than expected, or the city may not fit your lifestyle.

Selling a home too soon can lead to emotional and financial losses, especially after accounting for closing costs, which can easily range from 2-5% of the home's value, plus the typical realtor sales commission. Our advice is to rent, stack cash, and wait until you're sure you're settled in both job and location. Being patient not only saves money but can prevent burnout by ensuring physicians aren't tethered to a job or area that isn't the right long-term fit.

Estate Planning Isn't Just for the Ultra-Wealthy

It's easy to overlook the need for estate planning documents, wills, healthcare directives, powers of attorney, especially early in one's career. But setting up these documents is an act of love for those you care about. No one wants to tackle the "living will" or contemplate worst-case scenarios, but doing so offers immense peace of mind.

One critical detail you need to keep on top of is to always double-check beneficiary designations on accounts like 401(k)s and IRAs. These designations override your will, so keeping them updated can avoid major headaches for your loved ones later on.

Read the Fine Print: Your Contract Can Make or Break You

Negotiating a physician contract may seem intimidating, but it's a step you cannot afford to skip. Many accept "boilerplate" offers, but knowledge is power. Even if a contract can't be negotiated, understanding the details (RVU targets, call coverage, non-competes, tail coverage) means you know what you're signing up for.

Organizations have a vested interest in swiftly finalizing contracts. Taking the time to have an expert review terms (even for several hundred dollars) can save tens of thousands, or shield you from future stress. Even if some elements are non-negotiable, you'll go forward with open eyes, better equipped to make smart decisions.

Build for Tomorrow

At the heart of long-term financial security is prioritizing the future. Directing your initial post-training income toward retirement contributions, debt repayment (especially those hefty student loans), and emergency reserves. It's okay to leave room for a "fun" spending budget, but big splurges, boats, luxury cars, should wait until you have a stable foundation.

Building habits early, like automatic savings and clear budgeting, pays off handsomely thanks to compound growth. As time passes, those early decisions create financial breathing room in both the short and long term.

Take it one step at a time. Don't feel compelled to do everything at once. Financial independence is a steady journey, not a sprint. By laying a solid groundwork and turning to professionals for help when needed, physicians can enjoy peace of mind, now and in the many successful years ahead.

The best of the best list is a paid sponsorship, but these are professionals/companies that Tyler and Chad collaborate with within their own practices or have been vetted to earn a spot on this list. By supporting our sponsors, it allows Chad & Tyler to dedicate more time to you and the Physician Cents community. If you ever have a question (or not a great experience, which we don't expect!) about a sponsor, please let us know. We call it the "best of the best" for a reason, and we will maintain that standard for our listeners & viewers.

Resources & People Mentioned

• Resolve

Connect With Physician Cents

• WealthKeel LLC
• Olson Consulting LLC
• Tyler Olson on Twitter
• Chad Chubb, CFP®, CSLP® on Twitter

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