I help therapists navigate every element of their financial lives: from understanding your practice P&L and building a personal budget to managing student loan debt and investing for retirement... and everything in between. But don't let my love of the tax code and spreadsheets scare you off! You're just as likely to find me with my nose buried in one of Pema Chodron's books as reading up on the latest financial planning techniques.
Don't contribute to your retirement account
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Hello Reader, It's almost tax time, and your tax professional might ask you if you want to contribute to an IRA, or max out your SEP-IRA for last year. That might be a good idea – or it might not. Yes, saving for the future is generally a good idea. But sometimes putting funds out of reach isn’t. And when you invest money in a retirement plan, those funds are pretty much out of reach until you’re 59 (and a half) years old. Retirement plans, like IRAs and SEP-IRAs, are still likely an important element of your financial plan, but (like all financial moves) don’t jump into it before you understand all the implications. Especially for business owners (e.g. therapists in private practice) sometimes focusing on building a liquidity is more important than maxing out retirement accounts. Generally, I like to see folks have about one years worth of personal spending easily available. Easily available means the funds are held in things like bank accounts and taxable brokerage accounts, where you can access your money any time you need it, penalty free. As always, if you have any questions about what I've covered today — or anything else happening in your financial life — HIT REPLY and ask away! I read and respond to every email. Best, PS: I’ll be attending the Group Practice Scaling Summit, a new conference, in April. It’s being held just outside Chicago and will focus on how to leverage systems of marketing, operations, & finances to scale your group practices. Click here to learn more and register. Enter the promo code TurningPoint100 to receive $100 off. (Yes, this is technically an affiliate code, but as a fee-only financial planner I don't accept those commission-type payments. That's important so you know that anything I mention or recommend is because I think it might help you – not because I'm making money. You can learn more about this fiduciary oath I make as a fee-only financial planner here.) |
Hi there! I'm a financial planner for therapists!
David W. Frank
I help therapists navigate every element of their financial lives: from understanding your practice P&L and building a personal budget to managing student loan debt and investing for retirement... and everything in between. But don't let my love of the tax code and spreadsheets scare you off! You're just as likely to find me with my nose buried in one of Pema Chodron's books as reading up on the latest financial planning techniques.
Hello Reader, Want the mindset that brings unlimited willpower? Keep reading and it could be yours! 👇 We’ve been taught that willpower is a limited resource. Many of us believe that willpower is like a battery – full at the start of the day, but depleted as the day wears on. And that this low battery leaves us vulnerable to poor impulse control and regrettable choices later in the day. And there is research seemingly backing up this limited view of willpower. The phenomenon came to be known...
Hello Reader, If you’ve been meaning to figure out a retirement plan for 2024, I’ve got just the webinar for you! Join Julie Herres and me as we guide practice owners through the maze of retirement options in this webinar. 👉 Click here to register! Whether you’re in solo practice or a group practice owner, we’ll break down the available choices, contribution limits, and help you figure out the best path for your future. It’s sure to be an informative session not to be missed if you’re...
Hello Reader, It wasn’t just a good day, it was a GREAT day. I was clear-headed, sharp, uber-productive. I was flying through my to-do list, and doing (IMHO) my best work, when I made a quick pivot to dispatch some emails. One email was from HR, announcing a change to the vacation policy. What? That’s interesting. Without hesitation, I click on the attached PDF to see if it was good news or bad. And just like that… I had been phished. I knew that clicking on a suspicious attachment could...