Navigating the 2025 Landscape — Financial Success for Surgeons

Setting financial goals is almost as critical as planning for surgery, as in both cases, you need to be focused on the outcome. It is so easy to let hard-earned money get away if you don’t have a specific goal to work toward. A great way to stay on the right track is with the use of SMART goals: Specific, Measurable, Achievable, Relevant, and Time-bound. 

For example, you might try to save $20,000 for retirement this year or pay off $10,000 in student loans by the end of 2026. Setting big goals in small steps can make them more achievable. Do you want to save up for a family vacation? Set aside $200 each month. In due time, the little steps add up, and you’ll be on your way. Or design a vision board, a device that will remind you what you’re working toward. Perhaps it is a plan for a dream home or a postcard from a vacation spot you have always wanted to visit.

Be sure to have fun along the way: Hitting a savings goal or paying off a large portion of your debt is a time for celebration and can help keep you motivated, knowing that your efforts are paying off. 

Reviewing your goals every few months lets you see how far you have come and make changes if necessary. Did you get a raise? You can put that extra income toward your goals. Hit with some unexpected expenses? You can readjust your timeline. Flexibility keeps goals achievable and can help you stay motivated.

The financial world can be as frenetic as the action in an overcrowded emergency room. Diversification*1 is necessary to protect against the ups and downs of the market for a particular asset, such as stocks. Diversifying your holdings helps preserve your wealth against big losses in a specific asset. For example, instead of tying up all your money in the stock market, you might also invest in bonds, real estate, and private equity. 

Diversification isn’t just about asset types but also touches upon geography and industries. Complement your US stocks with international ones. Of course, since healthcare is something you are most likely comfortable with, use your knowledge to invest in this sector and balance those investments with, say, technology or energy stocks. This way, you will not have all of your eggs in the same basket.

When you work with a financial advisor like the professionals at SCM, your plan is constantly monitored to see whether it is meeting your financial goals. Your needs may change with time, and the market will fluctuate. By adjusting your investments from time to time to help ensure they stay in line with your stated goals and objectives, you stand ready to withstand the winds of change. 

Financial applications and online tools can make your life easier when dealing with your money. They track your progress and help you adjust your investments efficiently without a great deal of effort.

Another way to keep your finances more secure is by keeping updated with market trends and global events that affect your investments. This way, your money works in your favor, even in unstable economic times.

Admittedly, mortality is not really a topic anybody likes to think about. Still, it’s necessary to plan your estate to protect those you love and the things you worked hard for. A will is normally a good place to begin since it says who inherits your money and property. If you want additional control, you may want to see if setting up a trust would suit you.

Proper planning makes it much easier for your family to handle your estate when you die and if implemented properly, may be able to save thousands on taxes. Of equal importance for a medical practice owner is a succession plan. It describes what will happen to your business when a person retires or any sudden incident surprises you.

A succession plan can help safeguard the value of your business. It can ensure that your patients continue to be treated in the manner to which they are accustomed. Of course, all sorts of practicalities will need to be dealt with once you are no longer around, including your online accounts, banking apps, social media profiles, and online subscriptions. You can make things easier for your family by keeping a list of passwords and sets of accompanying instructions.

Estate planning isn’t all about the money. It’s also about easing a difficult period for the remaining members of your family. You want to review your estate plan at least every three years or when a significant event occurs, such as marriage, kids, or a property sale. Updates to your existing plan are crucial so that it remains relevant to your current requirements.

Experienced assistance can make it easier to manage your finances. A financial advisor, like the professionals at SCM, presents a clear picture of your situation and can lead you in the right direction to make good decisions. You want a financial advisor who has an excellent understanding of the problems that come with being a surgeon, from uneven income to large student loans. 

You should start by checking the background and qualifications of the financial advisor you’re thinking of hiring. Certifications such as the CFP® or CFA indicate that they have in-depth training to address challenging fiscal issues. Ask questions regarding client experience with surgeons and how they deal with their current clients. 

The value added by the right financial advisor includes really listening to clients and clarifying alternatives. The best financial advisors do more than manage your wealth- they help you make better decisions about your finances. 

Having the right financial advisor by your side can help you feel more confident about your financial future while freeing up more time to devote to your career. That’s why it’s crucial to take your time to find someone whose values are in alignment with yours. Reaching your financial goals is one of the key things that can make or break an effective financial advisor-client relationship.

Of course, no one enjoys paying more taxes than necessary, but smart planning can prevent this from happening. Most surgeons qualify for a number of deductions and credits that can considerably reduce tax burdens. You may be able to deduct items such as medical expenses, student loan interest, or continuing education costs. 

Saving for retirement can also lower your current taxes. Putting money into 401(k)s, IRAs, or HSAs reduces the amount of your income that gets hit with taxes. If you’re investing, you can employ a strategy called tax-loss harvesting, in which you sell some of your investments that have lost money to offset your gains and help lower your taxes. Thorough financial reviews and planning for next year before the end of the current year can help you identify options for tax savings while avoiding surprises. 

Working with a tax professional will help ensure you’re taking full advantage of the opportunities available to you. Understanding how each year’s tax changes may impact your financial situation gives you an edge. The backbone of a sound tax plan can enable you to retain more of your income now and down the road.

Managing money isn’t something you do once—it’s an ongoing process. Your financial roadmap, in essence, defines what is important in your life while allowing you to design how you want to steer your career. Your overall plan should be designed to cover it all: protecting your income with life and personal insurance, having a low-risk, high-reward investing plan, discharging debt, saving toward retirement, and reducing your taxes using all the benefits of the current regulations. 

The roadmap should clearly reflect your individual goals. Maybe you want to give to charity, leave money to the kids, or plan a big family vacation. Another key component is simply work-life balance. Taking time to enjoy the fruits of your labor can keep you motivated and happy in the long run. The more you know about wealth management, the easier it is to allow yourself to make good choices. Go back to your plan now and then and update it for any new developments. Never lose sight of your financial goals for yourself and your family. 

A roadmap is a living document – it’s continually changing, just like life. This regular updating can position you for a more secure financial future that can assure your retirement and support for your loved ones. Contact SCM today to help realize your expectations and plan your legacy.