Before diving into the allocation strategy, let’s briefly revisit the fundamental differences between Roth and traditional IRAs.

Roth IRA: Contributions are made with after-tax dollars, but qualified withdrawals, including earnings, are tax-free.

Traditional IRA: Contributions are made with pre-tax dollars, providing an immediate tax deduction. Withdrawals, however, are subject to income tax.

Assessing current and future tax scenarios

To craft a personalized strategy, it’s crucial to evaluate the current and anticipated future tax scenarios …

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As the year comes to an end, it’s time to start thinking about investment allocations for 2024. Many of us own mutual funds.

But how do we select the right ones for our goals?

Investing in mutual funds is a common strategy for physicians seeking diversification and professional management of their portfolios. However, with a vast array of mutual funds available, selecting the right ones can be a daunting task. To make …

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Defining tax loss selling

Tax loss selling, also known as tax-loss harvesting, is a strategy employed by investors to offset capital gains and reduce their taxable income. This approach involves selling stocks or other securities that have experienced losses to counterbalance capital gains realized throughout the year. By doing so, investors aim to mitigate their tax liability and potentially improve their after-tax returns.

Mechanics of tax loss selling

Identifying losses. Investors begin by …

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As the year draws to a close, it is important that we maximize our opportunities to reduce our taxes. Let’s explore three essential moves that doctors should consider before the tax year concludes to reduce their tax liabilities.

1. Contribute to tax-advantaged retirement accounts.

One of the most effective ways for doctors to reduce their taxable income is by contributing to tax-advantaged retirement accounts. Not only does this help build a secure …

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Hiring a financial advisor can be a strategic move to ensure your financial health aligns with your professional success. However, the effectiveness of this partnership depends on asking the right questions. In this article, we’ll explore four essential questions doctors should pose to their financial advisors to pave the way for a secure and prosperous financial future.

“What is your experience working with medical professionals?”

Doctors face unique financial challenges, from managing …

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There are two primary methods that stand out for evaluating securities: technical analysis and fundamental analysis. Both approaches offer unique insights into the financial markets, each with its own set of advantages and disadvantages. Understanding the distinctions between these methods can empower investors to make informed decisions about their investment strategies.

Technical analysis: Uncovering market trends

Technical analysis involves the examination of historical market data, primarily price and volume, to predict future …

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Understanding and implementing effective tax planning strategies can make a significant difference in your financial health. Doctors often face unique tax challenges due to their high-income nature, and this article will explore key tax planning strategies tailored to the needs of medical practitioners.

1. Choose the right business structure. One of the initial steps in tax planning for doctors is selecting the most advantageous business structure for your practice. The most …

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As doctors, we are highly skilled in our respective specialties, but when it comes to managing our finances and investments, we may encounter unique challenges. One common pitfall is the tendency to invest heavily in medical stocks or health care-related assets due to familiarity and overconfidence. Just because we know a disease or drug doesn’t mean we can make a good decision on the stock of a company. Even if …

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