Ritholtz Wealth Management helps physicians and dentists put late savings, student debt, retirement accounts and a possible practice buy-in into one plan.
A high income creates options, but it can also hide a weak savings rate or too much debt. Ritholtz Wealth Management has a $500K investable-assets minimum.
A late start needs a savings rate, not a winning fund
Years in training leave less time for compounding, so the first calculation is usually cash flow. A physician earning more after residency may need to direct a defined share of each raise to retirement accounts before the new car, house payment or practice loan claims it.
For 2026, an employee may defer up to $24,500 into a 401(k), 403(b), governmental 457 or TSP. At age 50, the regular catch-up is $8,000. Ritholtz Wealth Management looks at workplace accounts, taxable savings and debt together before recommending an investment change.
A useful shortcut: if spending rises as quickly as income, a high salary will not repair a late start.
- Savings rate: set an automatic amount after each pay increase.
- Account location: use available tax-advantaged space before adding another taxable fund.
- Concentration: treat employer stock or a single sector as a separate risk.
How should student loans compete with investing?
Student loans deserve a comparison with their interest rate, repayment terms and federal protections, while retirement saving deserves attention to any employer match and available account space. Ritholtz Wealth Management does not treat every dollar of debt as an emergency, but it does put the loan payment beside the savings target and practice obligations.
Consider a hypothetical dentist with a $180K loan at 6% and $30K of extra cash. Applying $30K to principal lowers the balance to $150K and avoids $1,800 of annual interest on that portion, before amortization. Investing the $30K has an uncertain result, while the loan savings are known; the employer match may still come first.
A backdoor Roth contribution can be useful for a high earner who cannot contribute directly to a Roth IRA. It generally means making a nondeductible traditional IRA contribution and converting it, but traditional, SEP and SIMPLE IRA balances can make part of the conversion taxable under the pro-rata calculation. Keep the Form 8606 paperwork.
Can a practice buy-in fit beside your household plan?
A practice buy-in fits only if the payment, operating risk and exit terms still leave room for retirement saving, loan repayment and ordinary household spending. High income alone is not proof that the purchase works; the purchase price, financing payment, expected distributions and what happens if a partner leaves belong on the same sheet.
Disability and malpractice coverage belong there too. Ritholtz Wealth Management can include premiums and benefit assumptions in a spending plan, while an insurance professional should explain policy wording, exclusions and limits. A buy-in may be worth postponing when the cash reserve is thin or the debt payment depends on unusually optimistic production assumptions.
Every investment can lose value, including the amount originally invested, so a diversified portfolio cannot serve as the down-payment reserve for a near-term buy-in.
Your questions about Ritholtz Wealth Management, answered
Should I eliminate my student loans before building a retirement portfolio?
No, not automatically. Compare the loan rate and protections with any employer match, retirement-account space and the amount of cash you need for a practice decision. Ritholtz Wealth Management can show the trade-off in dollars, including what an extra principal payment saves in interest.
Can I make a backdoor Roth contribution when I have a SEP-IRA?
Yes, but a SEP-IRA can cause part of a conversion to be taxable under the pro-rata calculation. The calculation looks at traditional, SEP and SIMPLE IRA balances, so move slowly and retain the paperwork used to report a nondeductible contribution.
Does a strong income make a practice buy-in sensible?
No. A practice buy-in needs enough household cash flow after the financing payment, debt service, retirement saving and insurance costs. Ritholtz Wealth Management reviews the assumptions behind the offer, but your attorney and tax professional should review the legal and tax terms.
Ritholtz Wealth Management reviews the numbers before the story gets polished
Practice opportunities often arrive with a persuasive forecast and a due date. Ritholtz Wealth Management begins a Second-opinion plan review by asking for the loan terms, retirement-account statements, practice paperwork and household spending figures. Before recommending a sale, the firm checks capital-gains consequences and the account where it would occur.
The review can lead to retirement income planning, a Roth conversion strategy, tax-efficient investing, Social Security claiming or a 401(k) rollover to an IRA when those topics fit the facts. Fees are discussed openly in the first conversation and confirmed in writing before work begins.
This article provides general information only and is not individualized investment, tax or legal advice. Investing involves risk, including the possible loss of principal. Talk to a qualified professional about your specific situation before making any financial moves.