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Where Are the Doctor Millionaire's?. Have You Heard?. “The Tale of Two High School Graduates”. The Tale: Physicians Are High Earners. Physicians’ Income Grew Eight-fold 1980-2003. Source: The Healthcare Group, Inc. The Tale: Physicians Are High Earners.

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Have You Heard?

“The Tale of Two High School Graduates”


The Tale: Physicians Are High Earners

Physicians’ Income Grew Eight-fold 1980-2003

Source: The Healthcare Group, Inc.


The Tale: Physicians Are High Earners

Physicians’ Income Will More Than Double by 2014

Source: The Healthcare Group, Inc.


The Tale: Physicians Are High Earners

Medical Average Starting Salaries

2002-2005

Source: The Healthcare Group, Inc.



The Tale: Physicians Are Not Taught “Money”

“Of the 125 medical schools in the USA, only one of them to my knowledge offers a class related to saving or investing money.”

- William C. Roberts, MD


The Tale: Physicians Need Save More

Physicians’ Investment Asset Distribution

Source: Medical Economics Financial Surveys - 2000


The Tale: Physicians Could Save More

  • 26% saved less than 10% of their income

  • 74% saved at least 10% of their income

  • 34% saved more than 20% of their income

  • 9 out of 10 own stocks

  • Median investment equity was $200,000

  • Median net worth was $700,000

  • A third are debt free

  • Medical education loans represented 30% of the debt of physicians younger than 34

  • Fewer than one in ten had margin loans

  • They favor real estate as an asset class

    • 23% own a vacation home

    • 29% own their office

    • 39% own other real estate

Source: Medical Economics Financial Surveys - 2000




The Tale of Two High School Graduates

  • Becoming a doctor entails a significant (8-10 year) delay in entering the labor market and saving for retirement.

  • This can be costly: e.g., a $1,000 investment, yielding 10%, that is not made today will result in lost earnings of $1,594 over a ten year period.

  • Individuals with far less education and income levels can achieve higher levels of wealth than doctors, even when they both consistently save at high rates.

  • The median net worth of a retiring physician ($1,500,000) may be insufficient to sustain the standard of living of doctors accustomed to earning in excess of $100,000 per year during their careers.

  • Physicians need to develop strong savings discipline in order to make up the earnings forgone during their medical training.

  • Life-money strategy (aka, financial planning) promotes savings discipline.

  • Working with financial professionals who can help physicians reach top-tier risk-adjusted returns should be a key component of physicians’ financial security strategies.


Early & Mid Career – Wealth Planning & Accumulation

No single mix of asset classes will satisfy an investor’s conflicting goals of growth and preservation of capital in all market environments


  • Mid Career – Wealth Accumulation

    • Action

      • Update Financial Plan

      • Rebalance Investment Portfolio

      • Business Planning

      • Treasury Management

      • Education Savings

      • Retirement Forecasting

      • Trust & Estate Planning

      • Home Equity Lines

      • Family Accounts

      • Working Capital Financing

      • Equipment Financing

      • Commercial Real Estate Finance

      • Merger & Acquisition Financing

      • Group Benefit Plans

      • Risk/Investment Management through Insurance


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