In this episode, we’re opening our mailbag and answering some of the most common and nuanced financial questions facing doctors and medical trainees today.

Let’s break down the real numbers behind everything from choosing the right future rate of return for investment planning and calculating safe withdrawal rates in retirement, to tackling student loan strategies for dual-income families and navigating the ever-popular “Should I buy, lease, or finance a car?” debate.

We make sense of the numbers and provide guidance you can actually use—no matter where you are in your medical or financial journey.

Whether you’re a med student, a resident, or a seasoned attending, you’ll walk away with actionable insights and food for thought on building your financial well-being.

Looking for help with Disability Insurance, Physician Banking, Student Loan Refinancing, Physician Mortgages, Contract Reviews, and more? Check out our "Best of the Best" sponsors page to find a list of the professionals Chad & Tyler team up with for their clients.

You will want to hear this episode if you are interested in...

• [05:55] Relying solely on savings is risky due to inflation, which erodes purchasing power over time.
• [08:57] Reevaluating the 25% retirement rule.
• [11:07] Consider tax brackets when transitioning to retirement.
• [16:01] Balancing living costs and retirement.
• [19:35] Student loan refinancing case study.
• [23:25] Strategizing loan payoff and savings.
• [25:20] Buying vs. leasing a car.

Future Growth and Real Returns

One of the hottest topics from the mailbag revolves around the math underpinning financial planning: What’s a reasonable assumption for future investment growth (“real return”), and what role does inflation play in your projections?

While the S&P 500 has historically returned close to 9% annually, prudent planners—especially with an eye on maintaining expectations and avoiding unpleasant surprises—tend to use more conservative figures, usually in the 7% range. This is before accounting for inflation.

Even if your portfolio earns a 7% return, with inflation running around 3%, your real return is closer to 4%. This is crucial: over long timeframes, underestimating inflation or overestimating returns can dramatically erode your buying power and derail retirement plans.

Always plan with conservative estimates and remember that inflation is an ever-present headwind.

Safe Withdrawal Rates: The 4% Rule (and Why It’s Not Always 4%)

Perhaps one of the most debated topics among planners is the “safe withdrawal rate,” or the percentage of your savings you can spend each year in retirement without running out of money.

While the classic “4% rule” is widely cited, it was developed when bond yields were higher and may be a touch optimistic today. A range closer to 3–4%, depending on market conditions, yields, and individual circumstances, is more realistic.

For those retiring in their early 50s, a 3% withdrawal rate is safer, creeping up toward 4% for retirees in their 60s. Planning should remain agile—with adjustments made for market swings, unexpected expenses, and shifts in spending needs over time.

A key rule of thumb for physicians: estimate annual retirement spending, multiply it by 25 or 30 (depending on comfort with risk and market outlook), and use that as your retirement savings target. Planning for taxes and Social Security timing is vital, too.

Student Loan Drama: PSLF or Private Payoff?

Listener questions often circle back to student loans—and for good reason. Our case study involves an anesthesia resident (with a high-earning spouse and $130k in loans) prompts a discussion on PSLF (Public Service Loan Forgiveness) versus private refinancing and aggressive payoff.

With relatively “modest” debt (by physician standards), high dual income, and the diminished PSLF benefit after factoring in tax strategies, private refinancing with a low monthly payment is attractive.

Paying down the debt efficiently, possibly using resident-specific refinance deals, frees up future cash flow and mental energy—a valuable tradeoff given the physician’s strong earning potential.

Car Buying Strategies: New, Used, or Lease?

We’re also diving into the classic “should I buy new, buy used, or lease?” question. For residents and those who don’t rack up heavy mileage, a lease can make sense—minimal hassle, lower upfront costs, and fewer worries about repairs or moving across the country for training.

For those set on keeping a car for 7+ years, buying new (especially with favorable financing terms) or gently used can provide value.

Know Your Numbers—And Ask for Help

Mailbag episodes like this showcase the diversity of financial questions and the value of thoughtful, detailed planning.

Physicians juggle long careers, high debt burdens, and complex compensation structures—but with the right strategies, clear-headed math, and a willingness to get help, financial freedom is well within reach.

Remember: conservative assumptions, flexible planning, and periodic check-ins with a trusted advisor can make all the difference on the journey to financial well-being.

The best of the best list is a paid sponsorship, but these are professionals/companies that Tyler and Chad collaborate with within their own practices or have been vetted to earn a spot on this list. By supporting our sponsors, it allows Chad & Tyler to dedicate more time to you and the Physician Cents community. If you ever have a question (or not a great experience, which we don’t expect!) about a sponsor, please let us know. We call it the “best of the best” for a reason, and we will maintain that standard for our listeners & viewers.

Resources & People Mentioned

• Laurel Road

Connect With Physician Cents

• WealthKeel LLC
• Olson Consulting LLC
• Tyler Olson on Twitter
• Chad Chubb, CFP®, CSLP® on Twitter

Subscribe to Physician Cents

Apple Podcasts

Audio Production and Show Notes by - PODCAST FAST TRACK