MDLinx8 Items to Add to Your 2024 Financial To-do List

Maximizing Financial Health in 2024: A Comprehensive Guide for Physicians

As we embark on a new year, physicians face the dual challenge of managing their demanding careers while ensuring their financial well-being is secured. This comprehensive guide offers an essential financial to-do list tailored specifically for physicians, highlighting critical strategies to optimize spending, enhance tax efficiency, and bolster retirement planning. It underscores the importance of proactive financial management to not only secure a stable present but also to build a prosperous future, emphasizing the significance of adapting to life’s changes and seizing opportunities for financial growth.

Key Points:

1. Update your spending plan: Reflect on your financial obligations and discretionary spending over the past year to identify opportunities for savings and wealth building. Adjust your budget to align with any changes in your financial situation.
2. Gather your tax documents: With tax season approaching, organize all necessary documents early to streamline the filing process. This includes W2s from employers and 1099 forms for contract work.
3. Adjust retirement contributions: Review and possibly increase contributions to work retirement accounts, taking advantage of updated limits ($23,000 for those under 50; $30,500 for those over 50).
4. Invest in a (backdoor) Roth IRA: For high earners ineligible for direct Roth IRA contributions, consider using the backdoor method to take advantage of tax-free growth and withdrawals.
5. Set up automatic savings: Automate savings to ensure consistent contributions towards goals like home down payments, weddings, vacations, or emergency funds.
6. Consider opening a solo 401k: If you have self-employed income, a solo 401k can offer a tax-efficient way to save for retirement, allowing for employer contributions based on business profits.
7. Re-evaluate your debt reduction plan: Assess and strategize to accelerate the repayment of high-interest debts, potentially utilizing loan forgiveness programs available to physicians.
8. Update your estate plan: Ensure your estate plan, including a living will and trust, is current and reflects any changes in your life circumstances, securing your family’s financial future.

“If you’re like me, the amount you saved last year may not have been sufficient, so you may need to increase it this year.”
– Altelisha “Lisha” Taylor, MD, MPH, Founder of Career Money Moves and co-host of the “Money Meets Medicine” podcast

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