Financial Planning Check-Up: A Medical Pro’s Prescription

By Martin J. Swiecki, CFP®, CLU

For beginning or experienced medical professionals, maintaining financial health is a lot like physical health. Both need regular check-ups, preventive steps, and the proper “treatment” to solve issues that emerge. Financial planning is as important as getting an annual physical—it can stop future problems now and give you ways to improve your fiscal health.

Whether you’re fresh out of medical school or have been practicing for years, here are a few checklist items that can help you take on financial planning, diagnose issues in your wealth profile, and prescribe steps for improving financial stability.

Tackle Student Loan Debt While Building Your Investments

Student loans helped finance your education and set you up for a life in medicine. However, many medical employees are stricken by heavy debt burdens that can linger for years into their careers.

You may consider options like loan consolidation or refinancing your loan. Keep an eye out for debtors with lower interest rates. You might also look into loan forgiveness programs designed specifically for medical personnel. At the same time, start planning for your retirement by participating in a 401(k) or IRA program. 

Manage Practice Investments With Personal Financial Goals

If you own a practice, you’re aware of all the financial investments you have to put toward your business operations. Sound financial planning requires a balance between practice investments and funding personal goals to build wealth.

List out your financial goals, such as repaying debt, buying a house or car, a healthy retirement, and so on. By prescribing yourself a personal treatment, you’re less likely to neglect caring for your investments. 

Shield Your Assets From High-Liability Risk

The medical industry is more subject to high-stake, exposure-prone financial risks. Safeguarding your investments is a lot like getting malpractice insurance—an absolute necessity.

To shield your assets, think about strategies like starting a trust and taking out umbrella insurance. These instruments can keep your personal wealth away from your professional assets, acting as barriers between you, legal situations, and malpractice claims.

Start an Emergency Fund

One piece of advice financial planners suggest for almost all clients is to set up an emergency fund. This is a savings account that has enough money to cover three to six months of expenses.

An emergency fund can act as a triage unit in case of unexpected events or business declines. Straight-up cash funds can go into it, though you might consider setting up the fund as an investment vehicle like a high-yield savings or money-market account. If you do, rely on assets with very low risk and those that might earn additional interest to build up savings.

Start Financial Planning for Retirement

Workers who are just starting their careers generally don’t think too much about retirement planning. However, the sooner you can start saving for retirement, the better prepared you’ll be when the time comes. If you start early and make regular contributions, you’ll likely have more options and opportunities for wealth management.

Look for retirement plan advisory services to find the retirement fund structure that best suits your overall goals. Most retirement funds are tax-advantaged in some form or another, so tax planning can also be a part of your regimen.

Diversify Your Portfolio

Just as a medical treatment plan has different elements to improve health, a diversified portfolio can build up wealth. By funding a wide range of business sectors, market caps, international businesses, and other instruments, you can safeguard your holdings and mitigate risk. 

The thought is that returns from well-performing stocks can offset losses from businesses or sectors experiencing downturns. Mixing stocks, bonds, real estate, and retirement accounts can also keep risk at a manageable level. Avoid putting all your eggs in one basket—or all your ointments in one tray.

Partner With a Financial Planning Professional

Just as you would advise your patients to trust a professional with their medical diagnoses, it’s equally important to let financial professionals guide your financial health. The Valletta Group focuses on giving medical professionals of all experience levels the tools they need to manage their wealth with confidence and clarity. 

Our financial advisors focus on your personal goals and needs to build a responsible and robust wealth profile. Get in touch with us to set up a consultation. To schedule a meeting, call (248) 720-1780 or email mswiecki@vallettagroup.com.

About Martin

Martin Swiecki is the Founder and CEO at The Valletta Group, a wealth management firm based in Northville, Michigan, with a quarter century of experience helping individuals and their families navigate life’s transitions. Working closely with business owners and entrepreneurs in the medical, legal, and automotive industries as they pursue their aspirations, Martin leads a team focused on delivering tailored capabilities and services. He loves making a difference in clients’ lives by helping them pursue their goals with proper planning and providing comfort and peace that someone is looking out for them.

Since starting his career in 2003, Martin has been focused on listening to his clients, seeking to gain deep insight into who they are and aspire to be—apart from their investments. He founded The Valletta Group to pursue what he believes is “A Better Way” to serve his clients.

The name of the firm, Valletta, holds special significance. Valletta is the capital city of Malta, a small island off the coast of Sicily. When Martin envisioned creating his own firm, he struggled with finding the right name. He didn’t want to use his own name or anything generic. His mother, who moved from Malta to the U.S. in her early 20s, inspired the name. Growing up, Martin and his family would visit Malta every other summer, maintaining a close connection with their heritage. In 2019, Martin took his wife, Jessica, and their two young children, Evelyn and George, to Malta, where they stayed in Valletta. It was during this trip that his wife suggested naming the firm The Valletta Group. The name not only honors Martin’s mother’s perseverance in starting a new life in the U.S. but also serves as a meaningful family tribute and a conversation starter.

Martin holds a bachelor’s degree in engineering graphics and design from Western Michigan University. He earned his CERTIFIED FINANCIAL PLANNER®, CFP® designation in 2011 and became a Chartered Life Underwriter (CLU) in 2006. Outside of work, Martin enjoys spending time with his family, and pursuing outdoor activities such as golfing, boating, and fishing. To learn more about Martin, connect with him on LinkedIn.