CASE STUDY
Occupation: New Medical Professional
Student Debt: $250,000
Financial goals:
- Repay Student Debt
- Save to purchase a practice in the future
- Review my insurance needs
- Fund my child’s education
- Begin saving for my retirement
CONSIDERATIONS:
- Debt Repayment: You have just completed your residency and now are earning more income this year than in all your years of post-grad combined. Before you start looking at new sports cars it is important to establish a budget and plan to pay off your student debt. Our in-depth cash flow analysis can help illustrate efficient repayment strategies within your budget.
- Insurance: Do you have disability insurance to replace your income if an injury would prevent you from working? Do you have life insurance to cover your debts so that it is not passed onto to your family? We can evaluate your cash flow needs and liabilities to find the right amount of insurance to protect you and your family.
- Retirement Savings: During medical school you most likely were not able to contribute as much as you would have liked towards your retirement accounts. Make sure you are taking full advantage of the different retirement accounts available to you.
- Purchase Your Own Practice: One day you may want to purchase a practice of your own. We can act as the trusted advisor to help facilitate the deal and create a savings strategy to have the capital needed. Also, once you establish your practice, we will be able to assist with establishing 401k and cash balance plans.
- College Education Savings: You have finally paid off your student debt, and you want to help your children avoid the same situation you were in. We can establish 529 education saving plans for your children which will allow your savings to grow tax free if it is use towards education purposes.
INVESTMENT STRATEGY:
- Development of a comprehensive financial plan
- In depth insurance review
- Establish a 529 College Savings Account
The examples provided are all hypothetical and do not take into account any specific situations. The hypothetical examples are provided to help illustrate the concepts discussed throughout and do not consider the effect of fees, expenses, or other costs that will effect investing outcomes. Janney Montgomery Scott LLC does not provide legal tax or accounting advice and the information contained herein should not be construed as such. If you elect to establish an advisory services relationship based on our recommendation to you, we will provide information to you on the advisory program(s) in which you choose to invest. * For a detailed description of Advisory programs' services and fees, refer to the Janney Form ADV Part 2 disclosure document, available upon request and online at www.janney.com.
