Residency to Retirement will help ophthalmologists prepare financially for future
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I am supportive of Healio | OSN’s decision to bring the Residency to Retirement series focused on financial planning to our readers.
I began my ophthalmology residency in 1974 and retired from clinical practice in 2022, so I have lived this journey for 5 decades. I can state as a fact that decisions I made nearly 50 years ago significantly impact me and my family’s quality of life today. Practice management is critically important to an ophthalmologist, but personal financial management is also vital, and of course, the two are closely intertwined.
I was blessed to grow up in a family that owned and operated a small construction business in which the business and family’s well-being were one and the same and a regular discussion topic at the dinner table. I began following my father to work at age 12, so my business and finance education began early and continued through college, but most who pursue a career in medicine focus on science and not business and economics in college.
Once I entered medical school and residency, I became fully focused on learning the art and science of medicine and ophthalmology. There was no time and no need to think about financial planning as I was not saving money and planning for the future but borrowing money and trying to survive the rigors of medical training. While I knew that someday I would have money to manage, it was not a core need during training. I think this is consistent with most physicians’ experiences, and in my medical school, residency and fellowships, no time was taken to teach medical economics or personal financial planning.
Suddenly, at age 31, I was faced with choosing where and how to practice, negotiating with and integrating into a new medical practice, and for the first time earning a growing income that needed wise management. The decisions to be made are significant and have both a short-term and long-term impact on one’s future. Should I buy a home or rent, and what can I afford? What about life insurance — how much and what kind? Do I need to start saving for retirement right away, and if so, how much should I save, and what vehicles and types of investments are appropriate? Amazingly, there are taxes to pay, and tax planning is needed.
I began to accumulate assets, and they needed to be protected from predators. Children arrived, with all the associated joys and challenges, including planning to fund their upbringing and expected post-high school education. In the later decades, planning for retirement and charitable giving became important and complex topics. While it is critical to surround oneself with a team of wisely chosen practice advisers including a practice attorney, a practice management consultant and a practice accountant, a separate personal attorney, personal accountant, supportive banker and certified financial planner are also needed. I am convinced that it is important for each of us to develop knowledge in the spheres of practice management and personal financial planning as, ultimately, we are responsible for our own success or failure.
I have always taught that “fortune favors the prepared mind” (Louis Pasteur), and it is the purpose of the Residency to Retirement series to better prepare our minds to make good decisions that will enhance our and our family’s well-being and quality of life.
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