financial advisors for doctors
Client Profile: Doctor
- Age 43
- Married with two kids: ages 7 and 9
- Annual Income $1,000,000
- Investable assets $500,000
Situation
The doctor and his wife recently purchased the family home of their dreams. Almost half of their income goes to pay taxes, and they still manage to save over $100,000 each year. At this point, their goals are pretty simple: pay for college for their kids and enjoy the rest of their money in a comfortable retirement. The doctor is sophisticated enough to handle many of his own investment decisions, but a demanding work schedule and an active young family make it difficult to find the time to do so.
Action
- A financial advisor reviewed current insurance policies, including life, disability, home, and auto. Recommended a $3M umbrella insurance policy be added for asset protection purposes. We suggested purchasing the policy through the client’s’ current home and auto carrier to take advantage of a multi-policy discount.
- CFP® coordinated with CPA and pension administrator to set-up and fund retirement accounts each year.
- Recommended tax-inefficient investments be owned inside retirement accounts to reduce client’s taxable income, while maximizing after-tax investment returns.
Result
- By working with a CPA financial planner, this doctor made $150,000 in pre-tax deferrals to a newly established retirement plan reducing their current year tax liability by over $75,000.
- Clients immediately benefited from increased asset protection via the umbrella policy and retirement plan.
- A family charitable fund was established to donate to charities more tax efficiently.
- Both spouses expressed greater peace of mind and clarity around financial decision-making. They enjoyed making informed decisions and then delegating action to our RIA firm.
