Financial planning is a lifelong journey, especially for physicians who face unique challenges far beyond medical school.

Below, we'll expand on their candid advice for steps five through eight, tackling student loans, protecting your future, maximizing retirement savings, and mastering the art of tax efficiency. We continue our three-part miniseries focused on foundational financial steps for physicians. Building on the first four steps from the previous episode, we're moving on to steps five through eight, touching on topics like protecting your future self with the right insurance, maximizing your retirement accounts, and approaching taxes with a long-term perspective.

We hope our blend of practical advice and candid stories from inside the physician community helps you get to grips with everything from the complexities of student loan repayment and the essential types of insurance doctors need, to smart strategies for retirement savings and tax planning. Don't forget, the conversation continues next week with the finale, covering steps nine through twelve!

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 Take a personalized approach to student loans.
• 04:37 Student loans can be a financial maze.
• 10:21 Details of disability insurance planning.
• 12:20 Term life insurance basics.
• 18:08 Roth strategies and IRA options.
• 21:44 Health plan cost evaluation insights.
• 26:17 Municipal money market fund benefits.

Attack Your Student Loans Like a Strategist

Student loans don't have to be a life sentence, but they require strategic navigation. It's so important to know whether to pursue Public Service Loan Forgiveness (PSLF) or to explore refinancing options tailored for physicians. There's no one-size-fits-all plan; your loan management depends on your career trajectory, marital status, and the type of loans you hold (federal versus private). For federal loans, decisions like filing taxes jointly or separately, or accounting for income-driven repayment plans, matter a lot.

Customizing your repayment strategy means thinking beyond just paying down the debt fastest. For physicians with massive student loan balances, understanding PSLF eligibility and its complicated annual paperwork can save hundreds of thousands of dollars and years of worry. Private loans are simpler to manage, but federal loans offer powerful forgiveness options if you're on the right track, so take time to evaluate before refinancing or making major moves.

Protect Your Future Self

Physicians invest years, and a fortune, into their careers. Insurance isn't glamorous, but it's vital to securing the life you've built. The hosts recommend three types: own-occupation disability insurance, substantial term life insurance (10 to 20 times your income if someone depends on you), and a robust umbrella policy for liability coverage.

Own-occupation disability insurance ensures you'll receive payments if an injury or illness prevents you from practicing in your medical specialty. It's a physician-specific necessity, not a luxury, as Tyler Olson notes. Term life insurance is surprisingly affordable for doctors, and necessary if family, children, or even parents rely on your income. Umbrella policies provide extra protection against legal claims, a smart move given the perception that doctors are "deep pockets."

Max Out Your Retirement Buckets

Building wealth for the future begins with maximizing contributions to retirement accounts. We recommend filling up your employer-sponsored 401(k), 403(b), and, where available, 457(b) plans to the federal limit ($23,500 as of 2025).

The backdoor Roth IRA is a powerful tactic for high-income physicians, allowing for after-tax contributions that grow tax-free, even if you're above income limits for direct Roth contributions. Understand the pro-rata rule and avoid entanglements with SEP IRAs and simple IRAs if you're using backdoor strategies. Solo 401(k)s are ideal for side income, offering greater control and consolidation.

Consistent, maximal retirement savings, even if not sexy now, accumulate huge tax-advantaged growth over decades.

Pay Taxes, But As Little as Possible Over Your Lifetime

Tax planning isn't just for April 15th; it's a critical component of lifelong wealth. Whether you moonlight, work locums, or have 1099 side income, set funds aside and pay quarterly taxes to avoid penalties. Take advantage of deductions: HSA contributions, student loan interest (while eligible), CME, and tax-loss harvesting all make dollars go further.

The difference lies in strategic long-term decisions, like Roth conversions during low-income years or selecting tax-efficient investment vehicles, such as municipal bonds, for high-income professionals. Collaborate with financial and tax professionals who love digging into your return, spotting opportunities, and working hand-in-hand with your accountant.

Physicians face unique financial circumstances, but the right strategy makes all the difference. By systematically tackling student loans, protecting income, maxing out retirement accounts, and employing savvy tax planning, you can transform your career into lifelong financial security.

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

• Unlocking the Power of Mega Backdoor Roth IRAs,

Connect With Physician Cents

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

Subscribe to Physician Cents

Apple Podcasts

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We kick off a special three-part miniseries designed to help physicians fast-track their journey to financial independence. Inspired by one of Tyler Olson's most popular tweets, this conversation breaks down the first four steps every physician should take once they finish training.

From avoiding the "I earned it" trap to setting your savings rate and building your emergency fund, we share practical insights, real-life examples, and a healthy dose of financial wisdom for doctors at all career stages. Whether you're navigating your first big paycheck or wondering how to build a solid financial foundation, this episode is packed with actionable advice to help you secure your future and live life on your own terms.

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 1-4 to financial independence.
• [06:33] Plan early for financial success.
• [08:15] Avoid the urge to upgrade lifestyle prematurely.
• [13:53] Know your number and understand what you value.
• [21:45] Your first big pay raise is the easiest time to start saving.
• [26:15] Emotional and behavioral benefits of cash reserves.
• [28:58] Level two emergency fund strategy.

First Four Steps to Building a Solid Financial Foundation

Physicians are often seen as high earners with "easy" financial lives, but the reality behind the paycheck is much more nuanced. Years of demanding education, delayed earning power, and lifestyle pressures create a unique set of financial challenges. We break down and expand on the first four critical steps of 12 for newly minted attending physicians to set themselves up for long-term financial independence.

Step 1: Don't Fall for the "I Earned It" Trap

The "I earned it" mentality is tempting after years of sacrifice and hard work. The pressure of becoming an attending, the emotional weight of responsibility, learning new systems, and adapting to a higher-stress environment, often leads doctors to reward themselves prematurely. Upgrading to the million-dollar home, luxury car, and exclusive memberships before building a financial foundation is like eating dessert before you've had dinner.

Resisting these early lifestyle upgrades is about more than just discipline. It's about setting yourself up for flexibility and freedom in the future. Locking in big expenses too early can hinder agility, especially once family planning and unexpected life changes come into play. Focus on building wealth and stability before flexing assets.

Step 2: Track Your Real Cash Flow

Many physicians, especially those in the $300,000 to $600,000 income range, assume their paychecks can cover whatever they want. In reality, without tracking cash flow, even high earners can find themselves in financial trouble. It's so important to know exactly where every dollar goes. Start with three months of detailed cash flow tracking using tools like Monarch Money, Tiller, or even old-school spreadsheets.

Understanding your fixed expenses, discretionary burn rate, and real savings rate helps you make intentional financial decisions. Numbers don't lie, and self-awareness is especially important for high earners who may spend frivolously without realizing the long-term impact.

Step 3: Set Your Savings Rate

Because physicians generally start earning later than their peers, Tyler advocates a savings rate of 20-30% of gross income. Automate these contributions to retirement and brokerage accounts so every dollar is invested before it can be spent. Saving aggressively isn't about deprivation; it's about advocating for future spending, whether it's early retirement, reduced clinical hours, or the flexibility to change career paths.

If 20-30% feels ambitious, start lower and ramp up as your life stabilizes. The key is to automate and protect these contributions from being spent impulsively. "Every dollar you automate equals less guilt later," Chad Smith echoes.

Step 4: Build Your Cash Moat - An Emergency Fund for Peace of Mind

Tyler recommends three to six months of expenses in a high-yield savings account, but Chad sometimes prefers using post-tax income to calculate this number for greater security, especially for those early in their careers or facing job market uncertainty.

Think about what will happen if the unexpected happens. We share stories of real-life emergencies which bring home why liquidity matters. A well-funded cash moat provides both practical and psychological stability, letting doctors weather unexpected expenses or career pivots without panic.

Best Practice is to save enough to sleep soundly, then consider a "level two emergency fund" invested more aggressively for longer-term flexibility.

Making Intentional Choices

Financial independence for physicians isn't about simply earning high salaries, it's about making intentional, well-planned choices from day one as an attending. Begin by resisting the urge to spend, track your actual cash flow, set and automate a healthy savings rate, and build your emergency fund before investing in luxuries. Adopting these habits creates stability, agility, and options when life inevitably throws curveballs.

Stay tuned for steps 5 to 8 in next week's miniseries installment.

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

• Monarch
• Tiller
• YNAB

Connect With Physician Cents

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

Subscribe to Physician Cents

Apple Podcasts

Audio Production and Show Notes by - PODCAST FAST TRACK

In this episode, we're tackling the often-confusing world of advisor fees, clearing up the "alphabet soup" of terminology, fee-based, advice-only, flat fee, assets under management (AUM), commissions, and fee-only.

You'll get essential insights into what these different fee models mean, which conflicts of interest to watch for, and how to figure out which advisor structure suits your needs. We highlight the importance of understanding exactly what you're paying for and encourage you to look beyond just price, reliability and value matter, too! If you've ever wondered how financial advisors really get paid, or how to choose one that's right for you, this episode delivers all the answers.

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 Understanding fee terminology basics.
• 05:41 Financial incentives shape decisions.
• 06:24 Advisor relationships and compensation insights.
• 12:55 Comfortable self-directed investment management.
• 14:23 Challenges of the advice-only approach.
• 19:58 Hybrid fee models explained.
• 20:56 Questions to ask financial advisors.
• 27:48 Advisory fees vs. investment returns.

Understanding the Types of Advisor Fees

The financial planning universe is more nuanced than ever before, with new compensation models and hybrids popping up every year. It's important to distinguish between the various structures:

• Fee-Based: Advisors can sell products, earning commissions (like insurance), and also charge direct client fees.
• Advice-Only: Advisors provide flat-fee advice but don't manage investments or sell products.
• Flat Fee: Clients pay a straightforward dollar amount for services, either monthly, quarterly, or annually.
• AUM (Assets Under Management): Advisors charge a percentage of the investments they manage.
• Commission: Advisors are paid strictly by selling financial products.
• Fee-Only: All client costs are direct; no commissions from products or other entities.

Advisors may offer a blend of these models, so understanding what each entails, and the incentives they create, is a crucial first step.

Fee-Based Advisors: Wearing Two Hats

Fee-based advisors can earn money from both commissions (such as insurance, mutual funds, and annuities) and traditional fee arrangements. This hybrid approach is common among newer physicians who lack the assets for larger minimum fees but still need financial guidance.

While fee-based relationships aren't inherently bad, it's essential to be aware of the underlying incentives. If you go this route, clarity and full disclosure are your best protections, know what you're buying, the commission structure, and what (if any) ongoing service you'll receive.

Fee-Only and Advice-Only: Minimizing Conflicts of Interest

For physicians who want a relationship free of commission-driven biases, fee-only (especially advice-only) models are a breath of fresh air. In these setups, compensation flows exclusively and transparently from the client, limiting hidden conflicts.

Advice-only advisors focus solely on comprehensive planning, not asset management. This is ideal for the confident DIY investor, if you can stick to the plan without emotional reaction or procrastination. The challenge isn't getting a plan, but sticking to it as life and career inevitably create surprises and competing priorities.

AUM and Flat Fee: Clarity is Key

AUM-based fees charge a percentage of the investments managed. This "traditional" approach makes fees a moving target, but may align advisor incentives with your portfolio's growth. However, it's vital to understand whether these fees also cover ongoing financial planning or simply investment management. Too many physicians overpay for limited service out of habit or inertia.

Flat fee models, on the other hand, provide absolute clarity. Whether it's a single annual charge or a tiered structure based on income or complexity, you always know your costs.

Look for Reliability and Transparency

Choosing an advisor is about more than price, it's about aligning on values, expectations, communication, and service levels. Ideally, you're working with that advisor for decades...spend your time doing the research once.

The ideal advisor relationship isn't just about minimizing costs or maximizing returns, it's about trust, longevity, and peace of mind. Whether you're a new resident or a seasoned attending, the goal is the same: to understand what you're paying, what you're getting, and to feel empowered to periodically re-evaluate as life evolves.

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.

Connect With Physician Cents

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

Subscribe to Physician Cents

Apple Podcasts

Audio Production and Show Notes by - PODCAST FAST TRACK

Estate planning is often one of those "I know I should, but…" tasks that lingers on the to-do list, especially for busy professionals like physicians. So this week we're joined by Kyle Claussen, founder and owner of Resolve, for an in-depth conversation focused on estate planning for physicians. Kyle brings a wealth of expertise, tackling the complexities of estate planning, including guardianship, asset protection, and the all-important topic of ensuring your wishes are followed should the unexpected happen.

From explaining when physicians should start thinking about estate planning (hint: don't wait until it's too late!) to breaking down the difference between wills and trusts, this episode is packed with practical advice tailored to doctors at every stage, whether you're a med student, resident, or practicing physician. The discussion goes beyond the basics, exploring how estate planning intersects with asset protection, and why proactive rather than reactive planning is so critical.

Expect actionable tips on structuring beneficiaries, avoiding costly mistakes with property ownership across multiple states, and even some myth-busting around legal costs and DIY online tools. If you've ever put off estate planning or found the process intimidating, this episode will give you the clarity, and nudge, you need to get started.

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...

• [06:21] Estate and trust distribution insights.
• [09:14] Life insurance beneficiary risks.
• [12:16 Trusts for asset protection.
• [15:29 Managing multi-state property probates.
• [16:34 Estate planning essentials.
• [21:17 Top physician asset protection tips.
• [22:43 Risk management tips for rentals.
• [29:16 Why estate planning matters.

When Should Physicians Start Estate Planning?

When's the right time to get your estate plan in order? The answer is surprisingly straightforward, if you have kids, now is the time. Even if you're single or married without kids, the default "intestate" rules determined by your state may not align with your preferences, potentially leading to lengthy probate processes and undesirable outcomes.

Many physicians delay estate planning, thinking it only becomes necessary when they're older or have amassed significant assets. But the reality is that life insurance proceeds, custody of children, and guardianship arrangements in the event of untimely death all hinge on these critical documents, regardless of your age or net worth.

Wills, Trusts, and Beneficiaries: Avoiding Common Pitfalls

A major focus of the discussion was the mechanics of passing on assets, particularly for families with young children. Too often, physicians mistakenly list minor children as direct beneficiaries of life insurance policies or retirement accounts. This can create legal headaches, since minors cannot legally inherit large sums outright or manage those funds.

Kyle emphasized the importance of designating a trust, either by establishing a revocable living trust or including a contingent trust in your will, as the beneficiary for minor children. Doing so not only streamlines the process and potentially avoids multiple probate cases (especially important if you own property in multiple states), but it also allows you to set parameters around when and how young beneficiaries receive assets.

You can't change the rules after the fact. That's why proactive planning, rather than reactive scrambling after a crisis, is essential.

Estate Planning Costs and What to Expect

One common myth is that estate planning is prohibitively expensive. According to Kyle, basic estate plans, which include powers of attorney, a will, and potentially a revocable trust, typically range from $500 to $2,500. While more advanced plans for those with multi-million dollar estates may cost more, most early- and mid-career physicians can secure peace of mind with a modest investment.

He advises reviewing estate documents every five years or after major life changes to ensure guardians, beneficiaries, and special instructions are up to date.

Key Tools Every Physician Should Consider for Asset Protection

While estate planning determines what happens after you're gone, asset protection is about proactively safeguarding your wealth during your lifetime. The two are often linked, but not all estate planning tools (such as revocable living trusts) provide creditor protection.

Kyle outlined several primary strategies:

• Malpractice Insurance: Ensure you're adequately covered at or above your state minimums.
• Tenancy by the Entirety: If available in your state, this joint ownership option for married couples provides powerful protection of your primary residence against individual creditors.
• Umbrella Insurance: An affordable way to layer extra liability protection atop existing policies.
• LLCs for Rental Properties: If you dip into real estate, holding properties in a limited liability company helps isolate risk, protecting your personal assets from lawsuits related to a rental.

DIY vs. Professional Estate Planning: Which Is Right for You?

AI-driven or online DIY estate plans can be a starting point, certainly better than nothing, but may miss crucial nuances, especially for physicians with multi-state property or complex family needs. Professional attorneys can flag issues like multi-state probate and tailor documents to cover unique scenarios, offering a far greater return on investment in the long term.

For physicians, robust estate planning and asset protection aren't just for the ultra-wealthy, they're foundational for safeguarding your family, your practice, and your legacy. Take the time to get these essentials in place. And remember to check in every few years, a small investment of time can spare your loved ones significant financial and emotional strain down the road.

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.com

Connect with Kyle Claussen

• Kyle Claussen on LinkedIn

Connect With Physician Cents

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

Subscribe to Physician Cents

Apple Podcasts

Audio Production and Show Notes by - PODCAST FAST TRACK

This week, we're exploring how moments of uncertainty and adversity can shake our priorities and remind us not to let financial goals overshadow our relationships and overall well-being.

Whether you're a medical student, resident, or practicing physician, this episode encourages you to regularly reassess your work-life balance and ensure your financial decisions support, not compete with, the life you truly want to lead. Be proactive, not reactive, in aligning financial strategies with what matters most. So settle in and get ready for honest insights, personal stories, and actionable advice on blending smart financial planning with a fulfilling and authentic life.

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] Balance financial independence and meaningful living.
• [03:07] Value of life versus the value of financial planning and wealth creation.
• [06:30] Unique pressures and time demands of the medical profession.
• [07:47] The emotional, relational, and personal dimensions of financial planning.
• [08:52] Reevaluate your priorities to optimize life.
• [09:58] Financial planning as a tool for life optimization.

When Life Overshadows Money

We open the episode sharing a personal experience: a scary moment when Tyler's son fell and suffered a head injury during a family trip. Although the outcome was ultimately okay, it was a stark reminder that, in moments when our loved ones are in danger, money suddenly feels meaningless. After all, no matter how much money we've accumulated, none of it matters when someone we love isn't ok. These experiences, whether direct or vicarious, force us to reevaluate priorities.

Physicians often feel a tension: striving for financial independence or early retirement, versus the die with zero philosophy that advocates for using resources to enrich life today. Setting the right priorities is not always easy, which is why reflective conversations like these are valuable.

Work-Life Balance: More Than a Buzzword

Work-life balance is especially elusive for many physicians; the grind can easily take over, often leading to missed family moments and a skewed sense of what truly matters. Life moves quickly, and loved ones won't always be around. The true value in life isn't found in dollar signs, but in the relationships and memories we create. While financial security is vital, letting it dominate our decisions can leave us out of balance, personally and professionally.

Be Honest About What You Want

Effective financial planning does require introspection and honest conversations. Good financial planners will routinely ask clients about their time commitments and priorities, not just their investment strategies. Physicians (and anyone) should establish a "supporting cast," whether it's a spouse, friends, or a planner, to keep themselves accountable for how they spend their time, not just their money. These conversations help prevent years from slipping by without regular reassessment of what truly matters.

Making Intentional Choices

Periodically consider questions like, "If I could go down to 0.9 or 0.8 FTE and still reasonably reach my goals, would you do it?" For those with steady savings and clear financial plans, there's often hidden flexibility to adjust work commitments and make space for life's priorities.

We also share stories of clients who took pay cuts or changed careers to reclaim quality time with their families, and how these moves were celebrated not just financially, but also personally. Financial planning principles are crucial, but only insofar as they enable a life well-lived. Money is the tool, not the destination. Tyler sums it up: "Value financial planning principles, but value them in the context of the value of life and making the most of it for yourself."

In medicine and beyond, it pays to be intentional about how we invest our resources, especially the ones we cannot earn back. Are you assessing your priorities regularly? What changes could you make today to give first place to what matters most in your life?

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.

Connect With Physician Cents

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

Subscribe to Physician Cents

Apple Podcasts

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The Mega Backdoor Roth isn't for everyone, but when available, it's a physician's superpower. Whether you're a W2 employee, an independent contractor, or running your own solo 401k, we discuss how to add it to your financial strategy and explain the potential pitfalls.

In this episode, we talk through how to check your plan details and crunch the numbers to see whether it's right for you. After all, balance is key to financial wellness. If you've ever wondered how to get more into your Roth bucket or whether after-tax 401(k) contributions could benefit your long-term plan, this episode is for you.

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...

• [04:37] Mega Backdoor Roth limit constraints.
• [09:04] The tax efficiency debate: after-tax vs. brokerage.
• [13:03] Mega Backdoor Roth strategies.
• [14:07] Qualifying for a Mega Backdoor Roth.
• [17:28] Maximizing income for retirement planning.

What is the Mega Backdoor Roth?

The Mega Backdoor Roth is an advanced retirement savings tactic that enables high-income earners to invest much more into Roth accounts than what standard Roth IRA or Roth 401(k) contribution limits allow. For 2025, the total 401(k) contribution cap is $70,000, which includes your $23,500 employee contribution, employer match, profit-sharing, and, where available, the after-tax contributions that make the Mega Backdoor Roth possible.

In practical terms, if your employer plan allows both after-tax contributions and in-service rollovers or conversions to a Roth, you could move up to $70,000 into your Roth 401(k) or IRA annually, subject to subtracting your standard contributions and employer match. This "mega" savings opportunity can significantly boost your tax-free retirement nest egg, if you're eligible.

Why Isn't Everyone Doing This?

The excitement about the Mega Backdoor Roth on online finance forums makes sense, but not everyone can access this perk. Most 401(k) plans (especially in private practice or academic settings) do not offer the required plan features. Out of every ten clients, maybe only two or three have plans that permit Mega Backdoor Roth contributions.

What's more, high employer contributions can limit your after-tax space. If your employer already maxes out your account with generous matching or profit-sharing, there may be little to no room left for after-tax contributions.

How Does It Work?

Here's the basic playbook:

• Check Your Plan Rules: Ask HR if your 401(k) permits after-tax contributions and if it allows in-service rollovers or conversions to a Roth.

• Calculate Your Limit: Subtract your employee plus employer contributions from the $70,000 limit. The difference can be contributed after-tax.

• Act Quickly on Conversions: Ideally, you want to roll over your after-tax contributions to a Roth as soon as possible. This ensures all growth also becomes tax-free, not just the original contributions.

• Watch Out for Pitfalls: If you overcontribute before employer matching goes in, you risk missing out on those contributions or breaching the annual cap, which can trigger headaches and require corrective distributions.

Solo 401(k)s and Mega Backdoor Roth

For independent physicians or those with significant 1099 income, a Solo 401(k) may create even more flexibility. Some people can combine cash-balance pension plans with Solo 401(k)s for both pre-tax and Mega Backdoor Roth contributions. However, not all off-the-shelf plans allow these advanced moves; customized plan setup may be required, and using the right provider can make a big difference.

Spouses who work in the practice might also be eligible, potentially doubling the family's Mega Backdoor Roth opportunity, a major win for highly compensated couples.

Is It Always the Right Move?

More Roth savings sounds great, but don't prioritize future tax-favored accounts over your present cash flow or liquid needs. If contributing the maximum would squeeze your lifestyle or short-term goals, scaling back is wise. Plus, for some, a taxable brokerage account, especially for low-dividend investments, might be more tax-efficient if after-tax-only options are the alternative.

Remember, you don't have to max out your after-tax contributions for the strategy to be worthwhile. Even smaller amounts add up and diversify your retirement tax picture.

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

• carry.com

Connect With Physician Cents

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

Subscribe to Physician Cents

Apple Podcasts

Audio Production and Show Notes by - PODCAST FAST TRACK

The ever-changing world of student loans is a subject at the top of every doctor's mind right now. With new regulations rolling out, interest resuming, and federal repayment plan changes looming, there's a lot of confusion about the best steps to take next.

On this episode, you'll hear the latest updates on student loan forgiveness programs, shifts in income-driven repayment plans, and the tricky decisions surrounding refinancing versus sticking with federal loans. We're also sharing real-world examples, client scenarios, and fresh insights from the front lines of financial planning for physicians.

Whether you're nearing Public Service Loan Forgiveness, exploring your repayment options, or debating a move to private lending, this episode is packed with the clarity and practical advice you need to make informed, confident decisions.

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...

• Evaluating PSLF strategy options [05:15]
• IBR payment caps removed [08:34]
• Physician loan forgiveness challenges [13:33]
• Navigating uncertainty in physician careers [16:37]
• Refinance strategy - do you want flexibility or a cushion? [20:04]
• Evaluating PSLF viability for careers [25:20]
• Loan interest comparison example [26:12]

Two Paths: PSLF Seekers and Beyond

• The current financial environment leaves most borrowers in one of two camps:
• Those pursuing PSLF, looking to maximize forgiveness via public service employment
• Those planning a private payoff, who may consider refinancing to lower their interest rates

The ideal strategy depends on your career path, household income, family size, and how many qualifying payments remain if you're hitting the PSLF 120-payment threshold.

For PSLF-Bound Physicians: Strategy Amidst Change

If you're aiming for PSLF, several changes directly affect your repayment game plan, especially with the phasing out of certain plans like PAYE and changes to the Income-Based Repayment (IBR) plans.

Interest Is Not Your Enemy: For those close to 120 payments for PSLF, accrued interest will be forgiven if you stick with the forgiveness programs. Therefore, for many, remaining on SAVE until you're forced to switch (anticipated between December and June) might be optimal, even as interest grows.

Shifting Eligibility: New IBR rules will eventually remove the "partial financial hardship" requirement, broadening eligibility—but also eliminates the "payment cap" that protected high earners from excessively high payments. This can significantly impact high-income households, so careful cash flow planning and timely re-application are crucial.

Application Backlogs and Buyback Realities: The PSLF Buyback process has proven slower and sometimes more expensive than anticipated, with actual "buyback" costs coming in higher than expected. Advisors now recommend proactively starting or restarting your PSLF payment clock, rather than waiting for an uncertain buyback windfall.

Complexity in Tax and Filing Considerations: Married filing separately, AGI adjustments, and state-specific community property rules can all impact monthly payment calculations. As Tyler noted, coordination with tax professionals is increasingly essential.

For Those Not Going for PSLF: Refinancing and Payoff Considerations

If PSLF isn't on your horizon, perhaps due to private practice plans or employer type, the private refinancing market may seem appealing. But it's not a step to be taken lightly:

Don't Jump for Minimal Savings: Unless you can achieve a meaningful rate reduction (at least 1% or more), it's usually not worth giving up federal protections, flexibility, and the slim-but-real possibility that your future career path could shift back into PSLF-eligible territory.

Opt for Flexibility: Even when refinancing, it may be better to lock into a longer (e.g., 10-year) term for lower required monthly payments, but pre-pay aggressively at the 5-year rate if possible. This provides cash flow safety in case of income disruption without locking you into a punishing payment schedule.

Don't Ignore Lump Sums: If transitioning to private loans, paying down accrued interest at the time of refinance can save on total costs and prevent additional negative amortization.

Knowledge, Intentionality, and Professional Support

There is no universal "best" solution. The student loan landscape is changing fast, and even professionals need to re-educate themselves regularly as new details and government guidance emerge. Physicians should work closely with knowledgeable advisors, invest time in understanding options, and remember—sometimes peace of mind is worth a higher payment to put debt stress behind you.

Whether you are actively pursuing PSLF or considering refinancing, do your homework, seek personalized advice, and stay adaptable. As the rules shift, knowledge and strategic flexibility are your best assets for financial well-being in your medical career.

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

• The College Investor
• Laurel Road
• Credible Loan Refinance

Connect With Physician Cents

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

Subscribe to Physician Cents

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In this episode, we're opening our mailbag and answering some of the most common and nuanced financial questions facing doctors and medical trainees today.

Let's break down the real numbers behind everything from choosing the right future rate of return for investment planning and calculating safe withdrawal rates in retirement, to tackling student loan strategies for dual-income families and navigating the ever-popular "Should I buy, lease, or finance a car?" debate.

We make sense of the numbers and provide guidance you can actually use—no matter where you are in your medical or financial journey.

Whether you're a med student, a resident, or a seasoned attending, you'll walk away with actionable insights and food for thought on building your financial well-being.

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...

• [05:55] Relying solely on savings is risky due to inflation, which erodes purchasing power over time.
• [08:57] Reevaluating the 25% retirement rule.
• [11:07] Consider tax brackets when transitioning to retirement.
• [16:01] Balancing living costs and retirement.
• [19:35] Student loan refinancing case study.
• [23:25] Strategizing loan payoff and savings.
• [25:20] Buying vs. leasing a car.

Future Growth and Real Returns

One of the hottest topics from the mailbag revolves around the math underpinning financial planning: What's a reasonable assumption for future investment growth ("real return"), and what role does inflation play in your projections?

While the S&P 500 has historically returned close to 9% annually, prudent planners—especially with an eye on maintaining expectations and avoiding unpleasant surprises—tend to use more conservative figures, usually in the 7% range. This is before accounting for inflation.

Even if your portfolio earns a 7% return, with inflation running around 3%, your real return is closer to 4%. This is crucial: over long timeframes, underestimating inflation or overestimating returns can dramatically erode your buying power and derail retirement plans.

Always plan with conservative estimates and remember that inflation is an ever-present headwind.

Safe Withdrawal Rates: The 4% Rule (and Why It's Not Always 4%)

Perhaps one of the most debated topics among planners is the "safe withdrawal rate," or the percentage of your savings you can spend each year in retirement without running out of money.

While the classic "4% rule" is widely cited, it was developed when bond yields were higher and may be a touch optimistic today. A range closer to 3–4%, depending on market conditions, yields, and individual circumstances, is more realistic.

For those retiring in their early 50s, a 3% withdrawal rate is safer, creeping up toward 4% for retirees in their 60s. Planning should remain agile—with adjustments made for market swings, unexpected expenses, and shifts in spending needs over time.

A key rule of thumb for physicians: estimate annual retirement spending, multiply it by 25 or 30 (depending on comfort with risk and market outlook), and use that as your retirement savings target. Planning for taxes and Social Security timing is vital, too.

Student Loan Drama: PSLF or Private Payoff?

Listener questions often circle back to student loans—and for good reason. Our case study involves an anesthesia resident (with a high-earning spouse and $130k in loans) prompts a discussion on PSLF (Public Service Loan Forgiveness) versus private refinancing and aggressive payoff.

With relatively "modest" debt (by physician standards), high dual income, and the diminished PSLF benefit after factoring in tax strategies, private refinancing with a low monthly payment is attractive.

Paying down the debt efficiently, possibly using resident-specific refinance deals, frees up future cash flow and mental energy—a valuable tradeoff given the physician's strong earning potential.

Car Buying Strategies: New, Used, or Lease?

We're also diving into the classic "should I buy new, buy used, or lease?" question. For residents and those who don't rack up heavy mileage, a lease can make sense—minimal hassle, lower upfront costs, and fewer worries about repairs or moving across the country for training.

For those set on keeping a car for 7+ years, buying new (especially with favorable financing terms) or gently used can provide value.

Know Your Numbers—And Ask for Help

Mailbag episodes like this showcase the diversity of financial questions and the value of thoughtful, detailed planning.

Physicians juggle long careers, high debt burdens, and complex compensation structures—but with the right strategies, clear-headed math, and a willingness to get help, financial freedom is well within reach.

Remember: conservative assumptions, flexible planning, and periodic check-ins with a trusted advisor can make all the difference on the journey to financial well-being.

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

• Laurel Road

Connect With Physician Cents

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

Subscribe to Physician Cents

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If you're wondering what's really happening with Public Service Loan Forgiveness (PSLF), curious about creative strategies for paying down your loans, or stressed about how your med school debt might impact buying a home, we've got your back.

This week, we're breaking down the current state and future of Public Service Loan Forgiveness (PSLF), discussing student loan management strategies—including some lesser-known tactics—and sharing practical advice for navigating major life decisions, such as marriage and real estate, while carrying significant medical school debt.

We wrap up with some solid insights into how debt-to-income ratios affect home purchases, and provide the latest guidance on disability insurance options for residents at top institutions, such as the Mayo Clinic.

Whether you're just starting med school, deep in residency, or well into your attending years, you won't want to miss the practical tips and real-world scenarios packed into this insightful episode.

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...

• [03:10] Current state of PSLF based on legislative updates as of July 2025.
• [05:32] Distinction between student loan repayment options (IBR, RAP) and discussion of potential changes.
• [11:09] Practical benefits and drawbacks of refinancing federal loans in small chunks.
• [15:37] Why your med school debt shouldn't stop you from buying a home with your spouse.
• [19:32] How physicians can secure income protection with disability insurance.

The Current State of PSLF for Incoming Interns

Given all the buzz about Congressional reforms, we're covering whether the Public Service Loan Forgiveness (PSLF) program is still accessible to the next generation of physicians. PSLF is not on the chopping block for anyone who is out of medical school.

If you're an intern or a senior resident fellow attending, the rules for PSLF are fundamentally the same. If you're an intern, resident, or attending, PSLF stays intact for existing borrowers. However, the fine print for income-driven repayment plans (such as IBR and the possible new 'RAP' plan) is still in flux.

Stay alert for legislative updates, though—especially if you're right at the beginning of your medical education. Final details are still emerging, with significant updates potentially rolling out in 2026. Nonetheless, for those starting training now, PSLF remains a safe and viable option.

Should You Refinance Student Loans in Chunks?

Another question in the mailbag is whether it's savvy to take only a portion of federal debt ($30,000 at a time) into a private loan for better rates, while retaining more favorable federal protections for the remainder.

The honest answer is that we both think this is unnecessarily complex for minimal upside. Federal loans can always be paid down aggressively, and moving smaller chunks into private loans means navigating possibly shifting interest rates, repetitive refinancing paperwork, and little real financial gain.

In most real-world cases, the time, risk, and administrative hassle simply aren't worth it, unless private rates are remarkably better (which, in 2024, they often aren't). Refinancing federal student loans incrementally is more trouble than it's worth for most physicians.

Our advice is to assess your full financial picture and consider a clean, one-time refinance if private rates and circumstances are truly compelling.

Debt, Marriage, and Physician Mortgages

Most lenders only count the debt and income of applicants actually on the mortgage. Both partners don't need to be on the loan, even if married. This means the non-indebted partner could be solely on the mortgage (with both still on the deed), sidestepping issues with student loan debt affecting loan approval.

So the good news is that your med school debt needn't tank your partner's real estate dreams. Still, loan requirements change, so the best thing to do is to consult lenders who understand physician loan nuances, and remember you have flexibility as a couple.

Disability Insurance—The GSI Advantage for Mayo Clinic Trainees

Mayo Clinic incoming residents, listen up: You have exclusive access to Guaranteed Standard Issue (GSI) disability coverage. Your most valuable asset as a young doctor is your earning potential.

The latest Milliman survey underscores the growing difficulty of getting fully underwritten disability insurance—over half of applicants face modifications or outright denials due to even minor health history blips.

That's where GSI plans (like those at all Mayo Clinic locations) are game-changers: They offer a strong monthly benefit, no invasive health checks, and a smooth process into higher coverage as your salary grows.

We recommend working with specialized agents who focus on physician disability insurance to protect your income early—don't assume you'll qualify later.

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

• 2025 Milliman Surveys
• Physician Financial Services
• About Us | MR Insurance Consultants

Connect With Physician Cents

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

Subscribe to Physician Cents

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It's easy to assume you're prepared for an emergency just because you have credit cards, a 401 (k), or home equity available—but those options can quietly turn an urgent expense into a long-term financial headache.

In this episode, we delve into why these seemingly convenient backstops often come with significant costs, including high interest rates and lost investment growth.

We outline exactly how relying on credit or tapping into retirement funds in a crisis can derail even the best-laid financial plans. But we don't just talk about what to avoid—we get practical about what works.

We share our top strategies for building a real emergency fund, from high-yield savings accounts to money market funds and conservative taxable brokerage allocations.

By the end, you'll have a clear sense of how to move beyond risky assumptions, choose safer, more effective options, and build a plan that truly protects your peace of mind no matter what life throws your way.

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) Think your emergency fund situation is all good?
• (01:03) The worst emergency fund options: credit cards, stocks, HELOCs.
• (06:40) Deep dive: why credit cards fail as an emergency fund.
• (08:56) 401 (k) hardship withdrawals and their hidden costs.
• (10:48) Nuanced take on using HELOCs as a backup option.
• (14:30) The best emergency fund options revealed and compared.
• (22:58) Wrapping up: final thoughts, practical advice, and resources.

Why Most Emergency Funds Fall Apart When You Need Them

It's tempting to think you're covered just because you have access to credit cards, a 401 (k), or a home equity line of credit. But those options are loaded with hidden costs and risks that can turn a short-term emergency into a long-term setback.

I want to make sure you see how easy it is to lean on what feels accessible without realizing how expensive or disruptive it really is.

When you're in crisis mode, you don't want to be scrambling to pay 30% interest, taking taxable, penalized withdrawals from your retirement plan, or eroding your home equity. In this episode, I lay out why those "plans" aren't really plans at all.

Instead, they're signs of avoiding the uncomfortable truth that your safety net isn't built yet.

The Smarter, Simpler Tools for Emergencies

I know that building a true emergency fund can feel like just another chore on your financial to-do list, especially with the demands of a physician's career. That's why I'm a big advocate for approaches that keep it simple while truly protecting you.

High-yield savings accounts and money market funds offer security, liquidity, and a decent return with almost no hassle or risk of temptation. I also make space in the conversation for using taxable brokerage accounts, but with an intentional, conservative allocation.

This isn't about chasing growth—it's about backing up your primary emergency fund with an extra layer of security that can help you avoid more drastic moves.

How to Put Your Emergency Plan in Place Today

If there's one thing I want you to take from this episode, it's that you can design an emergency fund strategy that actually works for you.

I walk through clear steps on how to decide your priorities, how much to set aside, and where to park those dollars so you're not losing out on interest or risking a panic sale when something goes wrong.

It's about getting proactive now, so you're not forced into bad decisions later. We also talk about how to recognize your real "order of operations," including how you might preemptively secure something like a HELOC as a backup, without ever planning to lean on it first.

It's not about ruling out every tool forever, but about understanding their real costs and risks so you use them wisely. My goal is to make sure you can handle life's surprises with confidence—knowing your plan is solid, intentional, and built for you.

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

• https://www.morningstar.com/personal-finance/10-sources-emergency-cash-ranked-best-worst - Christine Benz's original article, inspiring the episode topic on best and worst emergency fund ideas.
• https://www.whitecoatinvestor.com - physician finance community.
• https://www.ally.com - high-yield savings account example.

Connect With Physician Cents

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

Subscribe to Physician Cents

Apple Podcasts

Audio Production and Show Notes by - PODCAST FAST TRACK