How Can Your Medical Career Build Wealth?

The LOUNGE - A Newsletter for Savvy Physicians

We scour the net, selecting the most pertinent articles for the busy doc so you don’t have to! Here’s what kept our focus this week…

• What if you could use your medical career to build a financial safety net that's as robust as your patient's vital signs?

• Empathy is often overlooked in the business world, but it's a crucial soft skill that can make all the difference in creating a culture of integrity and responsibility.

• Get ready to rethink your global business strategy, because the world has changed dramatically since NAFTA's introduction in 1992.

• Could maximizing life’s moments actually be the best way to plan your retirement withdrawals?

• Bridging the generational gap: Applying these principles can foster a productive and inclusive work culture.

• The future of healthcare is here, and it's time to get your medical consultant on board.

LOUNGE TALK

Many doctors have high earnings but often struggle with building lasting wealth. Amir Baluch, MD, explains how physicians can leverage their careers to secure financial stability through alternative investments. Rather than relying solely on stocks or traditional retirement accounts, Baluch advocates for diversification into private equity, real estate, and private credit. These options provide steady growth and potential tax advantages that buffer against economic shifts like inflation. He emphasizes that doctors can benefit from passive income without sacrificing their medical careers. By gradually allocating a portion of income to alternative investments, physicians can develop a robust, multi-stream financial plan. With the right strategy, doctors can use their high earning power to secure a future that sustains not only themselves but also the next generation.

Empathy is often overlooked in business, but it's a crucial soft skill that can lead to more ethical behavior and better outcomes. As an attorney, law professor, and talent agent, the author emphasizes the importance of empathy in business, citing studies that show empathetic employees are less likely to lie or steal, and CEOs with higher emotional intelligence are less likely to be involved in financial scandals. The author provides strategies for practicing empathy in business, including active listening, considering the long-term consequences, and using role-play.

The North American Free Trade Agreement (NAFTA) was signed in 1992, marking a significant shift in the global business landscape. Pankaj Ghemawat, a professor at NYU's Stern School of Business, has studied how companies have adapted to this change, from rethinking their supply chains to navigating unpredictable trade policy environments. Ghemawat discusses how companies can plan for an evolving world of multi-country international supply chains and cross-border information flows. In this episode, he shares his insights on strategy, competitive strategy, business history, globalization, and technology and analytics.

In planning retirement withdrawals, traditional methods may not maximize retirees' quality of life. Monte Carlo simulations show that conventional withdrawal methods, like the “total return with rebalancing” strategy, can result in vast disparities in retirement outcomes due to market variability. This approach, while stable, often leads to overly conservative spending and significant remaining assets that retirees cannot fully enjoy. Alternatives like the “bucket strategy” provide some flexibility but still come with limitations. Dynamic withdrawal strategies, however, offer a more adaptive model by allowing retirees to adjust spending based on actual market performance and portfolio levels, using “guardrails” to set upper and lower spending limits. Research indicates this dynamic approach can increase quality of life by enabling retirees to spend more early on when they can enjoy it most, while still maintaining a safety net. Although these strategies add complexity, they are promising for retirees seeking both flexibility and sustainable spending.

As Baby Boomers retire, Millennials and Gen-Z are stepping into the workforce with fresh priorities that emphasize work-life balance, social purpose, and digital fluency. Leaders need to adapt their approach to engage these younger employees meaningfully. This can be done by promoting flexibility in work styles, fostering purpose-driven roles, and communicating clearly and concisely. Since these younger generations value technology, leaders should adopt digital communication tools, provide regular feedback, and create paths for career growth. Social responsibility is also crucial, as younger workers are drawn to organizations that prioritize positive societal impact. By embracing these strategies, leaders can foster strong connections and inspire engagement within a diverse, multigenerational workforce.

Medical consultants are becoming essential to the smooth running of hospitals and healthcare facilities across the U.S. Unlike consultant physicians, these professionals don’t focus on patient care; instead, they manage business operations such as budgeting, safety compliance, and hospital image management. Medical consulting requires both business acumen and a medical background to navigate challenges effectively. To become a medical consultant, physicians need skills in analytics, communication, and experience in hospital management. They typically earn a high salary—up to $300,000 per year—with greater flexibility than clinical roles. Demand for medical consultants is projected to grow by 11% by 2028, making it a promising career path for healthcare professionals seeking alternative roles within the sector.

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QUICK BITES

• How large firms can get innovation right.

• CEOs: Here are 3 reminders before you promote your tech geniuses to management.

• How big business and government are shaping physician careers.

• Understanding the market cycle and positioning your portfolio for success.

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