As 2024 ends, now is the perfect time to reflect on your financial journey over the past year and plan for the road ahead. A recent study by Allianz Life Insurance revealed that over 50% of high-income professionals underestimate their retirement needs, underscoring the importance of setting clear financial goals.
At Surgeons Capital Management, we specialize in wealth management tailored to the unique needs of medical professionals. Consider surgeon-specific financial resolutions designed to help you leverage hindsight from 2024 and move forward with foresight into 2025.
2024 Hindsight: Reflecting on the Year’s Financial Landscape
Every year provides valuable lessons that shape future decisions. Reflecting on your financial performance in 2024 allows you to identify strengths and weaknesses, helping you build on successes while addressing challenges.
Economic Review
The economic landscape of 2024 presented challenges and opportunities for surgeons. Inflationary pressures and market volatility underscored the importance of adapting financial strategies to protect wealth. Understanding these broader trends provides context for individual financial performance and highlights areas for improvement.
Common Financial Mistakes
Some surgeons underestimated tax liabilities or delayed retirement contributions in 2024, leading to missed opportunities for growth. Neglecting to review insurance coverage left others vulnerable to unexpected risks. Recognizing these common missteps provides a roadmap for better financial decision-making in 2025.
Lessons Learned
Proactive financial planning was a major success factor in 2024. Surgeons who regularly reviewed their budgets and investments navigated challenges more effectively. Applying these lessons in 2025 will pave the way for greater financial stability and growth.
2025 Foresight: Setting Financial Resolutions for the New Year
Forward-thinking is the cornerstone of financial success. Setting clear goals and implementing strategies to address potential risks ensures you’re prepared for the year ahead.
Goal Setting
Clear financial goals provide direction and motivation. Surgeons should define specific objectives, such as increasing retirement savings, reducing debt, or funding a child’s education. These goals should be measurable and aligned with long-term aspirations, ensuring consistent progress throughout the year.
Risk Management Strategies
Mitigating financial risks is essential for safeguarding wealth and maintaining stability.
Insurance Review
Insurance coverage is a critical component of risk management. Surgeons should evaluate their disability, life, and malpractice insurance policies to ensure adequate protection. Updating coverage to reflect life changes, such as a growing family or new practice, provides peace of mind and financial security.
Diversification
A diversified portfolio reduces exposure to market volatility while supporting steady growth. Surgeons can balance traditional assets like stocks and bonds with alternative investments, including real estate and private equity. Geographical diversification further mitigates risk by spreading investments across global markets.
Tax Efficiency
Strategic tax planning minimizes liabilities while maximizing savings. Surgeons should explore tax-advantaged accounts like 401(k)s, IRAs, and HSAs. Leveraging deductions for business-related expenses and employing strategies like tax-loss harvesting can significantly reduce taxable income.
Investment Strategies
Thoughtful investment strategies ensure your wealth continues to grow and support your future goals. Tailoring these strategies to your unique circumstances is key to long-term success.
Retirement Planning
Surgeons should prioritize retirement savings by maximizing contributions to tax-advantaged accounts. Developing a withdrawal strategy helps ensure income lasts throughout retirement while planning for healthcare costs adds a layer of security.
Estate Planning
Crafting a comprehensive estate plan protects your assets and minimizes tax burdens for heirs. Surgeons should consider tools like trusts, wills, and powers of attorney to ensure their wishes are respected.
Legacy Building
Legacy planning ensures your wealth benefits future generations. Establishing charitable giving strategies or family trusts allows you to make a lasting impact while maintaining control over your financial legacy.
Financial Wellness
Fostering financial wellness creates a strong foundation for achieving broader economic goals.
Budgeting
Creating a realistic budget ensures you can meet expenses while prioritizing savings and investments. You should track spending regularly and adjust as needed to maintain financial balance.
Debt Management
Effective debt management minimizes financial stress and frees up resources for other goals. You can prioritize high-interest debts and explore refinancing options for student loans or mortgages to reduce costs.
Emergency Fund
Building an emergency fund with at least six months of living expenses provides a safety net for unexpected challenges. For surgeons, this fund ensures stability during practice transitions or health-related absences.
This Is the Time to Act
2024 may be behind us, but its lessons provide valuable insights for a prosperous 2025. By setting clear financial goals and implementing strategies like diversification, risk management, and tax efficiency, surgeons can build a secure future. Please get in touch with us today for a complimentary consultation, and let’s work together to turn your 2025 resolutions into lasting success.
Asset Allocation, which is a method of diversification that positions assets among major investment categories, does not guarantee a profit or protection against a loss.
This article is being provided for informational purposes only. It does not constitute a solicitation or offer of any particular product or service and is not intended, and should not be relied upon, as insurance, investment or financial advice.
Duly registered and duly licensed financial professionals with Surgeons Capital Management offer securities through Equitable Advisors, LLC (NY, NY 212-314-4600), member FINRA/SIPC (Equitable Financial Advisors in MI & TN); offer investment advisory products and services through Equitable Advisors, LLC, an SEC-registered investment advisor; and offer annuity and insurance products through Equitable Network, LLC (Equitable Network Insurance Agency of California, LLC; Equitable Network Insurance Agency of Utah, LLC; Equitable Network of Puerto Rico, Inc.). Equitable Advisors and Equitable Network are affiliates and do not provide tax or legal advice or services. Surgeons Capital Management is not owned or operated by Equitable Advisors or Equitable Network. PPG-7415011.1 (12/24) (Exp. 12/28)
