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Refinancing Medical School Student Loans Can Save Money in the Long Run

The following article is written and provided by Brandon Barfield, Co-Founder and Regional Director of Doctors Without Quarters, LLC. Student loan related services are provided by Doctors Without Quarters, LLC, an affiliate of Larson Financial Group, LLC.


You’re probably aware that Student Loan Refinancing is a hot topic for medical graduates right now. It has been in the news, lenders are broadly marketing and many physicians have done it over the past few years. Indeed, available rates can be much lower than the federal loan rates physicians borrowed at over the past decade. Even for a doctor who has taken little if any college level mathematics courses, the prospect of refinancing to lower the interest costs on student loans sounds like a no-brainer. However, only certain borrowers will qualify and there are several angles you should carefully consider. Below are some important considerations every borrower should understand before moving forward.

How Does Refinancing Work

Student loan refinancing is when a private lender buys out your existing federal and/or private student loans and issues you a new loan with a different interest rate determined by the market conditions at the time. The payment schedule for this new loan can range from 5 to 20 years depending on the lender. For borrowers with high balances and high interest rates, refinancing can result in saving tens of thousands of dollars in total payments.1

Medical School Loan Repayment


Let’s start by talking about what you give up when you refinance, namely your federal benefits. By paying off your federal loans with a private loan, you lose your status as a federal borrower and forfeit all federal loan benefits. The Federal Income Driven Repayment plans (IBR, PAYE, REPAYE) offer significant savings to many early career physicians. They offer low payments, interest subsidies and reductions and no interest capitalization while debt-to-income (DTI) is high.

PSLF is available to those who are directly employed by government affiliated institutions (including state teaching hospitals) as well as 501(c)3 non-profits. If you are working in this capacity, or considering it, you’ll want to learn more about this opportunity before you refinance. This includes most residents and fellows, and we will tell you how to assess those options at the end of the article. If you are already practicing in a for-profit environment, then PSLF is likely off the table at this point and refinancing is a good alternative to lock in some savings.2

Interest Rates

To benefit from refinancing, you’ll need to receive a lower interest rate on your new loans than you have on your existing loan. You may also benefit by refinancing a variable rate loan over to a fixed, even if the current interest rates are similar. The rates offered by the lenders will be driven by your credit profile which is ultimately summed up by your FICO score and DTI ratio. At the bare minimum, you’ll need a FICO credit score of at least 620 to even be considered. For the “top tier” rates, 720 is often the magic number you need to surpass. You will also need a stable job, a steady income and a degree from an accepted college or university.3

Each lender has different criteria, so it’s best to shop around for a provider that will offer you the best rate and support for your needs. That gets tricky, however, as most lenders advertise the same range of rates for student loan refinance, and you can’t see an actual rate offer until you submit an application and they pull a “hard” inquiry on your credit report. Too many inquires will actually begin to lower your FICO score. Getting a co-signer can sometimes improve your profile, but not always. Many professionals outside of the medical sector (such as parents) may not have the necessary income to make payments on large medical school loan portfolios, even if they have a high FICO. So adding them to the profile may not help. Late payment history on your credit report can also impact your approval and offer.4

Choosing a Lender

Though refinancing private student loans has been possible for years, institutions only began refinancing federal student loans for physicians in the last few years. When researching potential refinancing opportunities, you’ll want to look for lenders who understand the medical profession and have designed their products with key benefits. One such benefit is the ability to discharge your loan in the event of death or permanent disability. This is a federal loan benefit that most physicians highly value, and some private lenders offer it as well.5

The ability to not make payments during times of economic hardship is also a useful feature. Fees are probably the greatest concern. Various fees, particularly origination fees, can really diminish your savings. But you will be happy to know that some lenders, those who are serious about working with physicians, offer to refinance with no fees whatsoever.

Fixed Vs. Variable

Most lenders offer both fixed and variable rate loans. Fixed rate loans allow you to lock in a rate for the life of the loan. On variable rate loans, the effective interest rate will rise and fall with market conditions. Should rates rise dramatically, you risk potentially ending up with a higher rate than you had on the federal loans.3

Given the historically low rates that we are currently experiencing, locking in a low fixed rate is probably the best opportunity for most borrowers at this time. That said, variable rates can benefit borrowers with shorter time horizons to pay down debt, where the risk of rising rates is lower. Borrowers looking to pay off their loans in less than three years may want to explore variable rate options in order to maximize their savings potential.

The Bottom Line

Medical school debt lends itself particularly well to restructuring for a better deal. However, there are several caveats to consider which is why it is highly recommended that you speak to an advisor with knowledge of your individual circumstances before refinancing.

The ultimate objective is to reduce the overall cost of repaying your loans, while maintaining a payment that you can afford without sacrificing your other financial priorities. Exploring refinance opportunities on a proactive basis can afford you the opportunity to get a head start on paying down your medical school debt and planning for your financial future.

How We Can Help

Doctors Without Quarters (DWOQ) specializes in helping physicians and other healthcare professionals manage their debt. They have helped hundreds of Larson Financial Group clients reduce their cost of debt over the last few years. As an advocate to borrowers, and beholden to no one lender or servicer, DWOQ intimately understands the refinancing marketplace for doctors. They offer a free refinancing suitability analysis to physicians who are interested in pursuing this opportunity. Their expert team of loan advisors will consider your career path, financial goals, loan portfolio and credit profile to help you determine if refinancing is a good fit. If so, they will serve as your advocate to help you shop the marketplace, streamline the application process, broker the best deal and lock in a refinance that meets your needs and maximizes your savings potential. There is no charge for this service. If you are interested in the federal repayment and forgiveness programs, they can also assist in this area by offering thorough loan consultations during which a loan advisor will explain the programs in-depth and conduct a detailed analysis to show exactly what payments and savings would look like. To learn more, contact your LFG Advisor, or visit DWOQ’s website at www.DWOQ.com .

Have Questions?


  1. Ashley Eneriz, “Student Loan Refinancing: The Pros and Cons” (May 2017). http://www.investopedia.com/articles/personal-finance/011916/student-loan-refinancing-pros-and-cons.asp
  2. Bill Nelson, “Here’s What You Need to Know About PSLF” (December 2016) http://www.investopedia.com/advisor-network/articles/122816/heres-what-you-need-know-about-pslf/
  3. LendKey Technologies, Inc, “Student Loan Refinancing: Variable vs Fixed Rate” http://www.lendkey.com/resources/student-loan-refinancing-variable-vs-fixed-rate/
  4. Divya Raghavan, “How Student Loans Affect Your Credit Score” (July 2014). http://money.usnews.com/money/blogs/my-money/2014/07/07/how-student-loans-affectyour-credit-score
  5. National Consumer Law Center, Inc, “Disability and Death Discharges” http://www.studentloanborrowerassistance.org/loan-cancellation/disability-and-death/

Loan repayment advice and services provided through Doctors Without Quarters, LLC, an affiliate of Larson Financial Group, LLC. Additional advisory services offered through Larson Financial Group, LLC, a Registered Investment Advisor. Securities offered through Larson Financial Securities, LLC, Member FINRA/SIPC.

Larson Financial Group, LLC, Larson Financial Securities, LLC and their representatives do not provide tax advice or services. The information set forth in this writing is not intended to be investment or tax advice. Please consult the appropriate professional regarding your tax planning needs.

7 Questions to Ask Your CPA Before Year-End

By Debra Taylor, CPA/PFS, Esq., CDFA

Given the complex tax situation many high-income earners face, start tax planning in the fall while there is still time to make adjustments. These seven questions can help you spot problem areas and better understand the services you may need.

Although tax season is still months away, tax management should begin in the fall – especially for high-income earners facing the 3.8% net investment income tax, AMT, and other taxes.

Physician Tax Deductions

Below are seven questions that can help you open a discussion with your CPA and your financial advisor about next year’s tax bill. Have the discussion early in the fall so you still have time to make adjustments if necessary.

1. Can I limit my exposure to the 3.8% Medicare surcharge tax?

The 3.8% Medicare surcharge applies to net investment income of singles with modified adjusted gross income (MAGI) over $200,000 and couples over $250,000. The threshold for separate filers is $125,000. MAGI is adjusted gross income (AGI) plus tax-free foreign earned income. The tax is due on the smaller of net investment income (interest, dividends, annuities, gains, passive income, and royalties) or the excess of MAGI over the thresholds.

If you think there may be some exposure, review with your advisors the tax efficiency of the portfolio holdings, perhaps moving less efficient investments into tax-deferred accounts, and capitalizing on tax loss harvesting.

Other ideas include using municipal bonds to help avoid the surtax, since interest is tax-free, and/or taking capital losses to offset any other gains you may have. You may also want to consider an installment sale to spread out a large gain if that keeps your AGI below the thresholds. If real estate is involved, a like-kind exchange will also defer the gain.

2. Can I maximize the tax break using a Flex Plan for child care costs?

You can still claim the dependent care credit to the extent that your expenses are greater than the amount you pay through your flexible spending account (FSA).

The maximum dependent care costs funded through an FSA are $5,000, but the credit applies to as much as $6,000 of eligible expenses for filers with two or more children under age 13. In that case, you should run the first $5,000 of dependent care cost through the FSA, and the next $1,000 would be eligible for the credit on Form 2441.

For most filers, taking the dependent care credit will save an extra $200 in taxes. Of course, no credit is allowed for any child care costs that are paid via the flex plan.

3. What if my school-age child went to summer camp?

Costs related to a child’s summer camp qualify for the dependent care credit. So if a you sent your child to any special day camps this summer (i.e., sports, computers, math, or theatre), don’t forget this break. Ditto for camps that help with reading and study skills.

However, the costs of summer school and tutoring programs aren’t eligible for the credit. They are treated as education, not care. The other rules for the credit aren’t affected: the child must be under 13 and expenses must be incurred so that the parents can work.

4. How should I handle an inherited IRA?

If you inherited an IRA last year, a tax planning deadline is looming. The IRA’s beneficiaries are set for September 30th of the year following the death of the IRA owner. Typically, the heirs are able to take distributions from inherited IRAs over their lifetimes, unless one or more of the beneficiaries of the account are not individuals.

With non-individual beneficiaries, the IRA has to be cleaned out within five years for all beneficiaries, which is generally a negative because it denies tax-deferred growth to the beneficiaries over their lives, which is a longer period of time. The issue occurs when the owner names a charity or college as one of the beneficiaries.

Redeeming a non-individual IRA interest by September 30th can pay dividends. If the charity, school, etc., is paid off by that time, the remaining individual beneficiaries can take distributions over their lives, enjoying more tax-free buildup inside the IRA.

5. How can I optimize the earnings of my children?

Optimize a child’s summer job by contributing to a Roth IRA. The child can contribute up to $5,500 as long as he has earned income of $5,500 or more. The parents can make the contribution for the child, although the parent’s pay-in counts towards the $14,000 annual gift tax exclusion.

What difference does this make? A parent’s generosity can provide a nice nest egg. A $5,500 contribution to a 16-year-old’s Roth that earns 7% each year will grow to $151,000 at age 65 and $212,000 at age 70. If the child works for a couple of summers and contributions are made annually, the future balance of the account will be much more significant. And remember, all qualified withdrawals are tax-free!

6. How can I use the 0% rate on long-term gains?

If your taxable income without long-term gains is in the 10% or 15% tax bracket, profits on the sales of assets owned over a year are tax-free until the gains push you into the 25% tax bracket which starts at $74,900 of taxable income for married couples and $37,450 for singles.

If part of the gain is taxed at 0% and the rest at 15%, claiming more itemizations or making a deductible IRA contribution gives you two tax breaks: 1) claiming the deduction saves on income tax and 2) it allows more capital gains to be taxed at the 0% rate.

However, taking more tax-free gains raises the adjusted gross income, which can cause more of your Social Security benefits to be taxable. In addition, your state income tax bill may jump, since many states tax gains as ordinary income.

7. How can I donate most efficiently?

One way to turbo-charge donations to charity is by giving away appreciated assets, such as stocks. The appreciation escapes the capital gains tax and you will get a deduction for the full value in most cases, as long as you’ve owned the asset for longer than a year.

However, deductions for donations are reduced when adjusted gross income is over $258,250 for singles, $284,050 for the household head, and $309,900 for married couples.

The right assets to donate

Do not donate any assets that have declined in value. If you do, the capital loss is wasted. From a tax point of view, you’re better off selling the asset and donating the proceeds. This also applies if you plan to make a gift to a person. If you give an asset that has diminished in value, you are then unable to sell the asset and deduct the loss.

Consider a charitable lead annuity trust

A charitable lead annuity trust is a trust that pays an annuity to a charity for a set term. Then, what’s left goes to the donor or other beneficiaries. Although interest rates may increase, the donor still gets a nice up-front write-off. That deduction can be used to offset income generated from a Roth IRA conversion, such as letting the donor experience a full lifetime of tax-free withdrawals from the Roth.

Substantiate non-cash donations

If you fail to substantiate property donations, you can lose the write-off. For example, a veterinarian donated over $100,000 of fossils to a charity, and although he did attach Form 8283 to his tax return and received letters from the charity acknowledging the gifts, the fossils were not appraised properly as they were not seen by a qualified expert, which is mandatory when claiming a deduction over $5,000 for non-cash donations.

The taxpayer also failed to obtain a contemporaneous written acknowledgement from the organization stating that he received nothing of value in return for his gift. As a result, the tax court upheld the IRS determination to disallow the deduction.

Understanding tax laws isn’t easy, especially since the laws change constantly and are often tricky. Attempting to take advantage of the benefits can be a confusing process. Though there are some great tips and explanations above, seek the assistance of a tax professional whenever you have any questions about your tax situation.

Have Questions?

Debra Taylor, CPA/PFS, Esq., CDFA, writes on tax and retirement planning for Horsesmouth, an independent organization providing unbiased insight into the critical issues facing financial advisors and their clients.

Debra Taylor is not affiliated with Larson Financial Group.

IMPORTANT NOTICE: This reprint is provided exclusively for use by the licensee, including for client education, and is subject to applicable copyright laws. Unauthorized use, reproduction or distribution of this material is a violation of federal law and punishable by civil and criminal penalty. This material is furnished “as is” without warranty of any kind. Its accuracy and completeness is not guaranteed and all warranties expressed or implied are hereby excluded.

Advisory Services offered through Larson Financial Group, LLC, a Registered Investment Advisor. Securities offered through Larson Financial Securities, LLC, Member FINRA/SIPC.

Copyright © 2015 by Horsesmouth, LLC. All Rights Reserved

Financial Planning for Physicians

Building a Wealth Plan

Most physicians’ lost wealth potential is not caused primarily by poor investment choices. Rather, it is a lack of coordination across all areas of their financial lives that cause most doctors to give up their greatest potential. There are nine important planning areas that every doctor must address in order to build and implement a properly balanced and coordinated wealth plan.

Areas to Address in a Coordinated Wealth Plan

  1. Cash Flow
  2. Risk Management
  3. Debt
  4. Retirement
  5. Education
  6. Tax Planning
  7. Practice Management
  8. Estate Planning
  9. Asset Protection

A good financial advisor specializes in working with your other professional advisors to put each of these pieces together into one comprehensive and well-managed plan. Physicians often demonstrate that this coordination can literally mean the difference between hundreds of thousands–to millions–of dollars of additional wealth over their lifetimes.

Take for example many clients who have a large balance in their 401(k) or 403(b) plan through their practice. It astounds us that many of these investors have no idea that along with their account balance, their tax burden is also compounding throughout their working years. Without coordinating their future tax situation with their investment decisions today, they could face disaster when they reach their retirement years. We liken this financial coordination to a big jigsaw puzzle. If you correctly place all of the pieces, you can usually get a great outcome, but if just one piece of the puzzle is missing, everything else will get distorted.

In Summary

Our goal is to help you realize that you can go in one of two directions with your family’s financial future.

You can devote a significant amount of your time on a regular basis to stay abreast of financial issues and continue to manage your family’s financial playbook on your own. If you follow this path, do so with extreme caution. Physicians face a “crisis of overconfidence” as it relates to their own financial abilities. Consistent studies document that the more confidence a physician has in his or her own financial expertise, the less likely he or she is to actually be correct in this assessment. (5) (6)

Alternatively, you can delegate this work to a specialized professional so that you can spend your time following your passions, rather than worrying about how to finance them. At the end of the day, our hope is that every physician is being properly served when it comes to his or her financial life–either through his or her own efforts, or through those of an advisor or team of advisors. We want your financial life to be an area of peace for your family, not a source of stress. That outcome will only occur when your financial decisions are properly aligned with the core values you share for your family and when each piece of your financial life is working together in harmony with all of the other pieces.

Have Questions?

5) Unskilled and Unaware of It: How Difficulties in Recognizing One’s Own Incompetence Lead to Inflated Self-Assessments. Dunning, David and Justin, Kruger. Washington, D.C. : American Psychological Association, 1999, Vol. 77. 6) Montier, James. The Folly of Forecasting: Ignore All Economists, Strategists, and Analysts. London, England : DrKW Macro Research, 2005.

Larson Financial Group, LLC, Larson Financial Securities, LLC and their representatives do not provide legal or tax advice or services. Please consult the appropriate professional regarding your legal or tax planning needs.

Doctor Asset Protection

Protect Your Assets With a ‘Family Bank’

One of the biggest drains on your account may not be the market but rather family requests for money that may never be repaid. Preserve assets—and emotional health—by setting up a “family bank” where loan requests are reviewed, approved of, and monitored.

Left with a sizable portfolio, Doctor Smith thinks her financial future is secure. Little does she realize that one of the biggest threats to her assets is not the markets and not her health, but her own loving children, who think she has cash to spare. One by one, they quietly approach her for loans that will never be repaid. The guilt she feels from turning them down is worse than the fear created by the draining of her assets, but what’s a mother to do?

One possible solution in this familiar—and for most people, it is familiar— scenario might be for Doctor Smith to informally set aside a reasonable portion of her portfolio in a separate account and consider it the family bank. Although the amount she uses to seed this account will depend on her financial situation, she should remain cautious regardless. This account will always be registered in her name, just as her portfolio is now, but the expectation will be that these funds will be available to help her family from time to time. Her children may request a loan from the family bank at any time, using a more formalized process; a bit different than hitting up mom for cash while she’s cradling her first grandson in her arms. By adopting a few basic ground rules, you can forestall years of emotionally taxing personal and family stress.

Written loan request

Anyone desiring to borrow money from the family bank must draft a written request for the loan. The request should identify the following items:

  • The amount of the loan requested.
  • The repayment schedule desired. Hopefully, this will be expressed as a specific amount over a fixed period of time. In some cases this might be a bit more vague, such as, “I’ll repay it as soon as my house/boat/car is sold,” or “Once I get a new job, I’ll begin to make payments.”
  • The intended purpose for the loan proceeds. This needs to specify what the money will be used for (debts, education, acquiring a house or car, etc.).
  • A summary of any other outstanding loans from the family bank. This should include any existing loans made directly by Mom before the family bank was established. In fact, it is a good idea to address any existing loans to family members, whether current or in default.

Tough love

It can be emotionally difficult to request a signed promissory note from a family member, especially a child. It may be even harder to enforce such a note if the child defaults. The signed promissory note creates a needed formality, with the expectation for repayment that often does not exist with family loans. Another asset protection strategy may be to request that if the borrower is married, the spouse must sign the note as well. It is amazing how this stipulation can cut down on frivolous requests.

Don’t be afraid to ask for help

Make sure you keep an open line of communication with your financial advisor. As in most financial relationships, the benefits of transparency and accountability should never be underestimated. While you should feel comfortable making decisions as the director of your own family bank, there is real value to keeping your financial advisor well in the loop. If you choose to do so, you can even appoint your financial advisor as chief executive, while still retaining full veto power. By handing over the burden of loan approval to your financial advisor, you can keep emotional and transactional relationships with each child exclusive, while still creating a mechanism to help out. If the directors approve any loan that you don’t care to make, you have the choice not to distribute the funds from your account.

In many cases, the children will simply choose not to request a loan from the family bank when it involves this level of disclosure. And in the case of younger members who have not yet been able to establish a credit rating, or a sister just emerging from a divorce, access to funds via the family bank may be a tremendous advantage for getting on sound financial footing. After all, isn’t this what families are for?

Fairness is key

As a doctor, there is usually no real fear that the money might run out; rather, the issue is one of maintaining a sense of fairness for those members who would be eligible to request a loan. Another benefit is that the family bank as a practice offers valuable lessons to children of all ages.

The family bank essentially puts the pressure appropriately on the borrower and removes you from the process of approving or monitoring the status of a family loan. It also forces a level of accountability among siblings or other family members that might be uncomfortable for you alone. This accountability often leads to a more professional level of interaction among siblings. Coupled with the fact that you retain full control over your accounts at all times and have the right to ignore any recommendation for making a loan, a family bank could be a real win-win for you and your family.

Copyright © 2012 by Horsesmouth, LLC. All Rights Reserved.

Have Questions?

Advisory services offered through Larson Financial Group, LLC, a Registered Investment Advisor.
Securities offered through Larson Financial Securities, LLC, member FINRA/SIPC.
Larson Financial Group, LLC, Larson Financial Securities, LLC and their representatives do not provide legal or tax advice or services.  Please consult the appropriate professional regarding your legal or tax planning needs.
The views and opinions expressed in this article are those of the author, are for educational purposes only and do not necessarily reflect the official policy or position of Larson Financial Group, LLC or any of its affiliates.

Tax Strategies for Doctors

Physician Tax Deductions

Tax planning is all about using proven and effective methods to pay as little in taxes as possible. A good tax strategy will reduce your tax burden in three primary ways:

  1. Reduce your taxable income
  2. Reduce your actual taxes owed
  3. Delay the due date on your taxes for many years to come

Reducing Taxable Income

Tax deductions are the means of reducing taxable income as much as possible. Most tax payers are familiar with the idea of deducting the interest they pay on their mortgage from their taxable income. The effect is that there is less income to be taxed. The same holds true for practice owners who are able to expense their business purchases prior to calculating their taxable yearly profit. The number of opportunities tax payers miss when it comes to tax deductions is hard to quantify. Physicians overpay their taxes consistently by not taking full advantage of the tax deductions available.

Personal Tax Deductions Include:

  • The value of items or funds given to charity (also considered a business deduction).
  • Any interest paid on a first mortgage for your home, and a second home for up to $1 million of loans.
  • Interest paid on second mortgages or home equity loans for your home, and a second home for up to $100,000 of loans.
  • Interest paid on student loans if your income is within allowable limits.
  • Funds contributed to a tax-deferred retirement plan (also considered a business deduction).
  • Professional fees that exceed 2% of your adjusted gross income, including legal, accounting, investment, and financial planning fees.
  • Investment losses.
  • Travel expenses in connection with a job search.
  • Expenses for using your automobile for charitable purposes.
  • Continuing education expenses.
  • Medical expenses, including health insurance premiums, which may or may not have income limits, depending on how the plan is structured.
  • Pre-school or childcare expenses paid for your children so that both spouses can work.

Note: The preceding list of available tax deductions is only a partial representation. It is not comprehensive and varies from person to person. Please consult a tax professional with knowledge about your specific needs.

Charitable Gifts

Even though numerous tax strategies exist, a favorite tax strategy is applicable to anyone that gives cash to charity each year, and also has a significant taxable investment account. In this case, a physician can gift investments to a charity instead of cash. They can repurchase similar investments with their cash, and will owe less tax when the investment is ultimately sold. This strategy creates a triple tax benefit:

  1. You receive a deduction for the full amount of the investments that you gift to the charity.
  2. The charity can sell the investments tax-free, even if there is a substantial gain.
  3. You pay less tax when you ultimately withdraw your cash that has been reinvested.

Tax Deductions for Doctors

In addition to tax deductions, available tax credits can actually reduce your tax bill, dollar for dollar.

Tax Deductions for Doctors

Items potentially eligible for tax credits include expenses for:

  • Higher education
  • International or domestic adoptions
  • Energy-efficient home improvements
  • Each child that you have
  • Childcare so that you and your spouse can work

Though tax credits are the most desirable tax benefit, they are often excluded for families with high incomes. Therefore, most of our clients find that they are limited only to tax deductions for planning purposes because their incomes are too high to be eligible for any credits.

Delaying the Due Date

When tax deductions or credits are not available, a third tax planning strategy is to delay the due date on taxes owed for as long as possible. One respected CPA told us that from day one, a CPA is taught how to keep delaying or deferring taxes. Though this is sometimes appropriate, in many instances it would likely be better to reduce the taxes owed rather than just delay them. Additionally, with high-income professionals, they may actually be delaying their taxes to an even-higher bracket later on.

The problem with delaying taxes is that it usually comes with a cost. Few people understand the negative ramifications of delaying taxes. Take for example the 401(k) that delays taxes until later. Not only do you eventually owe the taxes, but you also owe taxes on the growth in your account.

Due to the compound taxation often caused from tax-delay strategies, it is usually better to first seek out true tax-deduction strategies. The main exception to this rule comes with major real estate investment. If someone has a large gain on an investment property, under certain guidelines they can do what is known as a 1031 exchange, delaying the taxes owed on the sale of the property by purchasing another property. Many physicians use this technique on their investment property to delay their taxes as long as possible. Provided that they delay the taxes until death, the taxes may be forgiven without ever having been paid.

Physicians often pay unnecessary taxes to the IRS. A well balanced financial plan will help you implement strategies that reduce your tax burden. Larson Financial Group advisors are experts at creating balanced financial plans that can significantly reduce your tax burden.

Have Questions?

Larson Financial Group, LLC, Larson Financial Securities, LLC and their representatives do not provide tax advice or services. Please consult the appropriate professional regarding your tax planning needs.