For family physicians, financial security and retirement planning are crucial steps toward long-term stability. In a recent episode of the Inside Family Medicine podcast, Emily Wick from the American Academy of Family Physicians (AAFP) sat down with Jered Hunt, President of AAFP Insurance Services, and Paul Andres, a financial expert from Prevail Innovative Wealth Strategies. Their discussion highlights essential strategies for retirement planning, wealth management, and key financial resources available to physicians.
The importance of starting early
One of the most critical takeaways from the conversation was the power of starting early. Paul Andres emphasized how compounding interest plays a significant role in growing retirement savings over time. Many young physicians might not prioritize long-term savings early in their careers, but delaying financial planning can lead to missed opportunities for wealth accumulation. Even small contributions—such as saving $100 a month—can lead to significant financial growth over time. The earlier physicians start saving and investing, the greater the potential for long-term financial security.
Balancing student debt and financial growth
For many physicians, student loan debt is a major financial burden, often delaying retirement planning. However, strategic financial planning can help physicians manage debt while simultaneously building wealth. Jered Hunt noted that physicians in their 50s and 60s often seek financial guidance as they near retirement, but those who start planning earlier have more options and greater financial stability. Even for those with substantial student debt, establishing a financial plan that incorporates both debt repayment and asset growth is crucial for achieving long-term success.
Creating a solid financial plan
Developing a dynamic financial plan is essential for physicians at every stage of their careers. Paul Andres recommends setting clear savings goals and reviewing financial plans regularly to ensure they remain aligned with long-term objectives. One of the most effective strategies is to pay yourself first—prioritizing savings and investments before spending on discretionary expenses.
Physicians have access to a variety of retirement savings options, depending on their employment structure. W-2 employees can take advantage of 401(k) plans and IRAs, while self-employed physicians (1099 contractors) have additional options such as self-employed IRAs, brokerage accounts, real estate investments, and cash-value whole life insurance. Choosing the right retirement savings strategy requires careful consideration, and working with a financial advisor can help physicians determine the best options for their unique financial situations.
AAFP Insurance Services: Supporting physicians’ financial well-being
AAFP Insurance Services is dedicated to helping family physicians protect their financial future by offering comprehensive risk management and financial planning solutions. Their portfolio includes life insurance, disability insurance, malpractice coverage, cyber insurance, and property and casualty coverage. As a wholly owned subsidiary of the AAFP Foundation, the profits generated by AAFP Insurance Services are reinvested into programs that benefit family physicians, ensuring a member-first approach rather than a sales-driven model.
One of the most exciting initiatives introduced by AAFP Insurance Services is the Resident No-Cost Offer, designed specifically for third-year residents. This program provides $5,000 in monthly disability insurance and $100,000 in term life insurance—completely free. The coverage continues for an additional year post-residency for physicians who stay as AAFP members, offering much-needed financial protection during this critical transition period.
Practical financial tips for physicians
Liquidity is key, and Paul Andres recommends that physicians build an emergency fund covering three to six months of living expenses. This safety net helps maintain financial stability in case of unexpected events, such as job changes or medical emergencies.
Another essential aspect of financial planning is tax efficiency. While retirement accounts like 401(k)s and IRAs offer tax advantages, they also come with long-term tax considerations. Physicians should work closely with financial professionals to develop tax-efficient wealth management strategies, ensuring they optimize savings while minimizing future tax burdens.
Final takeaways: Act now for long-term security
The biggest takeaway from the discussion is clear: start planning now. No matter where physicians are in their careers, taking proactive steps—whether developing a financial plan, increasing savings, or consulting a financial advisor—can have a significant impact on long-term financial security. Financial plans should be reviewed regularly and adjusted as life circumstances change, ensuring that physicians remain on track for a comfortable retirement.
Both Jered Hunt and Paul Andres stress that achieving financial well-being requires a combination of smart investment strategies, disciplined saving, and risk management. With the right resources, guidance, and planning, family physicians can confidently build a secure financial future.
For more information listen to the podcast or meet Jered for a personal conversation.
