Why Every Independent Doctor Needs a Wealth Manager on Their Team

As a doctor, you face some of the toughest financial challenges:

• A 35% median marginal tax rate, placing you among the highest tax brackets in the country.

• Money stress is the #2 cause of burnout, with 53% of doctors already feeling overwhelmed.

• A shortfall in retirement savings, with 25% of doctors retiring with less than they need to live comfortably.

Despite earning a high income, doctors are uniquely vulnerable to financial stress, largely due to delayed earnings, student loan burdens, and a demanding career that leaves little time for wealth-building strategies. The solution? A qualified, fiduciary wealth manager who ensures your money works as hard as you do.

This article is the third in a four-part series on building your business team. Every independent doctor benefits from having these four key professionals working on their behalf:

1. Part 1: Why Every Independent Doctor Needs a Legal Professional on Their Team

2. Part 2: Why Every Independent Doctor Needs a Legal Professional on Their Team

3. Wealth Manager (this article)

4. Business Coach or Consultant

The Role of a Wealth Manager in Your Financial Future

1. Tax-Efficient Investment Strategies

A wealth manager helps you invest in a way that minimizes your tax burden. They ensure you are using tax-advantaged accounts like Solo 401(k)s, Cash Balance Plans, HSAs, and backdoor Roth IRAs, allowing you to keep more of what you earn.

2. Retirement Planning & Financial Independence

Many doctors underestimate how much they need to retire comfortably. A wealth manager helps you set realistic targets and ensures you are on track to reach financial independence, allowing you to retire when you want, not when you have to.

3. Debt & Cash Flow Management

A strategic wealth manager will guide you in efficiently paying off medical school debt while maximizing savings and investment opportunities. They also help you create a cash flow plan to ensure financial security even in unpredictable times.

4. Avoiding Financial Pitfalls

Doctors are frequently targeted by financial product salesmen who masquerade as advisors. A fiduciary wealth manager has a legal obligation to act in your best interest, steering you away from commission-based insurance policies and overpriced investment products.

5. Net Worth Monitoring & Growth

Your net worth—not just your income—determines financial security. A good wealth manager tracks and optimizes your net worth, ensuring steady growth through diversified investments and smart financial planning.

Case Study: How Dr. Smith Secured His Financial Future with a Fiduciary Wealth Manager

Dr. John Smith, a 45-year-old orthopedic surgeon, had built a successful practice over the years, earning a six-figure income and providing a comfortable life for his family. But despite earning over $650,000 annually, he found himself struggling financially. Although his income was high, he was constantly battling the challenges of heavy student loan debt, a sizable tax burden, and the pressure to plan for retirement—all while keeping up with a demanding career that left little time for managing his wealth.

The Financial Struggles

At 45, Dr. Smith had worked hard for the past 15 years, yet his financial picture was far from ideal. He was paying a substantial 35% in taxes, which left him with less disposable income to save and invest. His retirement savings were lagging behind his goals, and he was uncertain if he would have enough to retire comfortably. Like many doctors, Dr. Smith was targeted by financial product salesmen who presented seemingly attractive investment opportunities, but he lacked the knowledge to differentiate between what was beneficial and what was simply a sales pitch.

Despite earning well, Dr. Smith was stressed about his financial future. With mounting debt and insufficient investment planning, he feared that he would continue working longer than he wanted, unable to retire with the peace of mind he deserved.

The Turning Point: Partnering with a Fiduciary Wealth Manager

Recognizing that he needed expert help, Dr. Smith decided to partner with a fiduciary wealth manager who specialized in working with physicians. A fiduciary wealth manager is legally bound to act in the best interest of their clients, which gave Dr. Smith confidence that he was receiving truly objective, tailored advice.

Here’s how his wealth manager helped transform his financial future:

1. Tax-Efficient Investment Strategies

Dr. Smith’s wealth manager immediately focused on optimizing his tax strategy. He implemented tax-advantaged accounts like a Solo 401(k), Cash Balance Plan, HSA, and backdoor Roth IRAs, all of which minimized his taxable income and allowed his wealth to grow in tax-advantaged environments. By shifting to a more tax-efficient investment strategy, Dr. Smith saved approximately $135,000 in taxes annually, which he could reinvest into his future.

2. Retirement Planning & Financial Independence

The wealth manager helped Dr. Smith understand the true cost of retirement and how much he needed to live comfortably. They restructured his retirement plan, incorporating more aggressive savings and investment strategies, and projected that Dr. Smith would increase his retirement savings by over $4 million over the next 20 years. This gave Dr. Smith the confidence that he could retire when he chose, not when circumstances dictated.

3. Debt & Cash Flow Management

Dr. Smith’s student loan debt was a significant concern, but his wealth manager devised a strategy to efficiently pay down the debt while still maximizing opportunities for savings and investments. They also helped him create a comprehensive cash flow plan, ensuring that even in months with lower earnings, Dr. Smith could still meet his financial obligations and invest in his future.

4. Avoiding Financial Pitfalls

One of the most significant advantages of working with a fiduciary wealth manager was the protection from predatory financial products. Dr. Smith had previously been pitched high-commission insurance products and suboptimal investment opportunities. His wealth manager ensured he was investing in low-cost, diversified portfolios and avoided any high-fee, commission-based schemes, preserving his wealth for the long-term.

5. Net Worth Monitoring & Growth

Dr. Smith’s wealth manager regularly tracked his net worth, offering insights into how to increase his wealth through diversified investments. They set clear goals for Dr. Smith’s financial independence, helping him stay on track toward financial security. Today, Dr. Smith feels more in control of his financial future and has the peace of mind that his wealth is growing steadily.

The Result: Financial Security and Peace of Mind

Today, Dr. Smith is no longer stressed about his finances. He has a clear roadmap for his financial future, with strategic investments, a structured retirement plan, and tax-efficient strategies. The financial clarity has alleviated his money-related stress and allowed him to focus more on his patients and practice, rather than worrying about his financial health. He is now on track to retire comfortably, confident that his wealth will continue to grow, and he can retire on his own terms.

The Takeaway: Why Every Doctor Needs a Fiduciary Wealth Manager

Dr. Smith’s story is not unique. Like many doctors, you may find yourself struggling to grow your wealth despite earning a high income. The demands of your career, combined with high taxes and student loan debt, can leave little time or energy for managing your finances effectively. This is where a fiduciary wealth manager comes in—a true partner in securing your financial future.

A fiduciary wealth manager not only helps you reduce your tax burden but also ensures that your money works as hard as you do. With expertise in retirement planning, debt management, and wealth-building strategies, a wealth manager helps doctors take control of their finances, reduce stress, and set realistic goals for their future.

How to Choose the Right Wealth Manager

To get the best financial guidance, choose a fiduciary, fee-only wealth manager rather than one who earns commissions by selling financial products. Look for someone who:

• Specializes in working with physicians.

• Charges a transparent flat fee or percentage of assets managed (not commissions).

• Has CFP® (Certified Financial Planner) or CFA (Chartered Financial Analyst) credentials.

• Focuses on long-term wealth-building rather than quick-fix strategies.

The great news is that Earned Wealth Management meets all of this criteria and as a SimpliMD preferred partner, I recommend you connect with them here.

Build a Holistic Business Team

A wealth manager is just one key professional you need on your team. To ensure total financial and business success, you should also have:

• A legal professional to navigate contracts and compliance.

• An accounting professional to maximize tax efficiency and keep finances organized.

• A business coach or consultant to provide strategic direction and professional growth.

Together, these professionals help independent doctors take control of their financial and professional future.

Take the Next Step: Secure Your Financial Future

If you’re ready to gain financial confidence, take action today.

Special Offers from SimpliMD:

• $2,000 SimpliMD Business Coaching – Receive 1:1 expert coaching to accelerate your business success. Learn More

• $500 SimpliMD Build Your Business Team Guide Services – Ensure you have the right professionals—lawyer, accountant, wealth manager, and business coach—to secure your financial future. Get Started

• $99 1:1 Micro-Business Consultation – Evaluate your career and explore how a micro-corporation can elevate your financial trajectory. Schedule Here

Doctors work hard to achieve financial success—but without a clear wealth strategy, much of that income is wasted. Partner with a wealth manager today and take control of your financial future!