Where Are the Doctor Millionaire's?

1. Where Are the Doctor Millionaire's?

3. Have You Heard? “The Tale of Two High School Graduates”

4. The Tale: Physicians Are High Earners Physicians’ Income Grew Eight-fold 1980-2003 Source: The Healthcare Group, Inc.

5. The Tale: Physicians Are High Earners Physicians’ Income Will More Than Double by 2014 Source: The Healthcare Group, Inc.

6. The Tale: Physicians Are High Earners Medical Average Starting Salaries 2002-2005 Source: The Healthcare Group, Inc.

7. The Tale: Few Physicians Become Millionaires Wealth In America

8. 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

9. The Tale: Physicians Need Save More Physicians’ Investment Asset Distribution Source: Medical Economics Financial Surveys - 2000

10. 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

11. The Tale of Two High School Graduates

12. The Tale of Two High School Graduates

13. 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.

14. 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

15. 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