Financial Planning for Medical Doctors and Healthcare Owners: Cash Flow, Investments, and Business Success
In this episode of All Things LOCS, we sat down with John Askin, a financial advisor at Allied Wealth Partners in New Jersey. John shared his powerful journey—from Division I athlete to advisor helping healthcare professionals build financial security—and offered actionable strategies for healthcare providers and practice owners navigating debt, investments, and business growth.
Whether you’re a medical doctor, physical therapist, clinic owner, or healthcare entrepreneur, this guide delivers key insights on financial planning, cash flow management, and building a practice that supports long-term wealth.
Why Financial Planning Is Essential for Healthcare Professionals
Healthcare professionals, particularly those in physical therapy, occupational therapy, and similar fields, face unique financial challenges: high student debt, modest starting salaries relative to that debt, and often a lack of financial education during their training.
As John put it:
“It’s scary to say, ‘I basically have a mortgage, but it’s not a place to live. It’s what I already did for the last six years.’”
This reality makes smart financial planning, including balancing debt repayment and investing, absolutely critical.
How John Found His Niche: Serving Healthcare Practitioners
John’s path to working with healthcare professionals began with personal experience. After tearing his ACL as a Division I soccer player, he forged close relationships with the physical therapists who helped him recover:
“I hit it off with my PT because we both played soccer at Monmouth. We talked about soccer all day long, and that connection stuck with me.”
Years later, that connection turned into a professional focus. After launching his career in financial advising, John reached out to his former PT:
“During our conversation, there was a lot he asked me that I thought he would know. That’s when it hit me: there’s a need here.”
John realized that healthcare professionals are an underserved market, often overlooked by traditional financial advisors who gravitate toward physicians and surgeons.
Managing Debt and Investments as a Young Healthcare Professional
Balancing Student Loans and Investing Early
One of the most common concerns John hears from younger clients is:
“Why would I invest when I’m 24, 25, and coming out with six figures worth of debt?”
John’s advice? It depends—but don’t assume it’s either-or.
He urges clients to look at interest rates on loans versus potential investment returns:
“If your student loan rate is 3% and you can invest at 7-8%, you’re winning by investing. But if your loan is 12%, you should focus on paying that down first.”
Don’t Leave Free Money on the Table
John emphasizes the importance of employer retirement plan matches:
“That employer match is basically free money. If you’re not contributing enough to get it, you’re leaving money on the table that you didn’t have to do anything for except show up.”
Even small contributions, matched by your employer, can accelerate your wealth-building efforts.
The Power of Compounding Interest
Starting early—even small—is key to long-term wealth:
“Compounding interest means your money starts making more money than you ever put into it. The sooner you start, the more you’ll have in the long run.”
John warns against chasing fast results:
“Everyone wants to see a return quickly, but compounding takes time. Stick to it, and the rewards will come.”
Financial Strategies for Clinic Owners
For clinic owners, John sees two major issues that often stall business growth and financial security:
Cash Flow Confusion
Many clinic owners blur personal and business finances:
“They co-mingle personal and business cash flow. Sometimes they take too much personally, and there’s not enough left to grow the business.”
John encourages owners to get clear on their numbers—personal and business—so they can make informed decisions about reinvesting, scaling, or paying themselves.
The “Key Employee” Trap
John frequently encounters owners who are their clinic’s linchpin:
“If they’re not there, the clinic’s revenue collapses. That makes it harder to sell the business later on.”
A practice that can run without the owner’s constant involvement is worth far more to buyers. John urges owners to delegate, systematize operations, and build a leadership team so they can eventually step back without collapsing the business.
Building Wealth Outside of the Practice
Many owners mistakenly see their practice as their sole retirement plan:
“Your practice might be worth $4 million in theory, but if it only works with you at the helm, a buyer might offer $750,000. That’s a big difference in your retirement picture.”
John advises clinic owners to invest outside their business too—max out retirement accounts, build other assets, and create multiple streams of wealth.
The Dangers of Social Media Financial Advice
John warns against relying on social media “gurus” for financial guidance:
“There’s so much advice out there that’s applied incorrectly. It’s not that insurance or crypto is bad—it’s that it might not fit your situation.”
Instead, he suggests:
✅ Vetting advisors carefully
✅ Seeking specialists who understand your profession
✅ Asking, “How does this apply to me?”
John’s CARE Framework for Financial Planning
John developed a simple, healthcare-inspired framework called CARE to guide his clients through financial planning:
Clarify Your Goals
Identify where you want to be in 5, 10, 20 years.
Assess Your Finances
Understand your cash flow, debt, investments, and assets.
Recommend Strategies
Create a personalized plan to meet your goals—bit by bit.
Evaluate Progress
Meet regularly to track what’s working and adjust as needed.
“It’s just like a physical therapy plan of care. We start with goals, assess where you are, map a strategy, and then keep checking progress.”
Final Takeaways for Healthcare Professionals and Clinic Owners
✅ Start investing early—even small amounts.
✅ Don’t neglect employer matches.
✅ Separate business and personal finances.
✅ Build a practice that can run without you.
✅ Get help from trusted professionals who specialize in your field.
“The best owners I work with delegate, focus on what they’re great at, and have the humility to ask for help.”
❓ Frequently Asked Questions
Why is financial planning important for healthcare professionals?
Healthcare professionals—especially physical therapists, occupational therapists, and similar roles—often graduate with significant student debt and receive little formal financial education. Smart financial planning helps balance loan repayment, investing, and building long-term wealth.
How do I balance paying off student loans and investing at the same time?
It depends on your loan’s interest rates and potential investment returns. As John Askin advises:
“If your student loan rate is 3% and you can invest at 7-8%, you’re winning by investing. But if your loan is 12%, you should focus on paying that down first.”
Why should clinic owners separate personal and business finances?
When personal and business finances are mixed, it becomes harder to track performance, reinvest in growth, and plan strategically. Separating the two gives clarity and protects both your personal and business financial health.
What makes a clinic more attractive to buyers?
A clinic is worth more if it can run successfully without the owner’s day-to-day involvement. Buyers value practices with strong systems, a solid leadership team, and dependable cash flow.
Is financial advice from social media trustworthy?
Social media content is often generic and not tailored to your specific situation. As John puts it:
“There’s so much advice out there that’s applied incorrectly. It’s not that insurance or crypto is bad—it’s that it might not fit your situation.”
It’s always safer to consult with a qualified financial advisor who specializes in your industry.
🎧 Ready to Take Control of Your Financial Future?
👉 Don’t just read about it—watch the full conversation with John Askin!
Get even more insights on leadership, cash flow, and building long-term wealth for healthcare professionals.
🎥 Click here to watch the full episode of All Things LOCS with John Askin!
Connect with John Askin
If you’re a healthcare professional or clinic owner ready to take control of your financial future, John Askin invites you to connect:
👉 LinkedIn: John Askin on LinkedIn
👉 YouTube: Search John Askin Allied Wealth Partners
“I always offer a free 15-minute call to see if I can help. No pressure—just a conversation to see if we’re a good fit.”
