Hey there, intern heading into residency in about a month. How useful would it be to hire a certified financial planner (CFP) to help navigate loan repayment and general financing? Any recommendations of firms in the Midwest?
I'd wait until you're out of residency and have more of an income coming in. Then they can help you with investing too. I recommend a fee-only financial advisor. Paying this fee makes the most sense when you're making a sizeable income. There's only so much they can advise you on while you're still in residency. It's good that you're planning ahead though!
Don't bother with a financial advisor. They will only steal your money. Over a period >5 years, they are highly unlikely to consistently beat index funds. Become a Boglehead and start index investing. You'll be glad you did in 20 years.
I strongly do not recommend getting a CFP. Unless you are getting a discounted rate from your employer, they usually charge an exorbitant amount of money for the service they provide. Try making a spreadsheet and running numbers and different scenarios. You can find all your credit info for free at creditkarma. In addition there a million and one apps to track and manage your spending while setting goals. Most CFP's will take advantage of you knowing that you are a doctor, because there is a stereotype that physicians are poor handlers of money.
Earmark 43% of your earnings for saving, house bills and house payments.
Get a home you can pay off in fifteen years with 28% of your income. Save the other 15%.
Pay off student loans before you save with that 15%. Once your house is paid off keep investing that money.
If you get 401k match do what it takes to get the match. Something like that should make a millionaire out of a nurse.
Both ideas are great, I will also second the idea of @southerndoc. But, hiring a CFP could be a more expensive step. but to get rid of the financial complexities and troubles, get services from a financial management firm. Not all financial advisors are CFPs but some are even great without having any certifications or affiliations.
"The little book of common sense investing" by Bogle, "The intelligent investor" by Graham, and "The white coat investor" by Dahle. They are all easy to read, well-written, and are great primers for new investors. Huge fan of Bogleheads as well.
I've spoken with financial advisors at different banks (Wells Fargo, BoA, M&T, etc) and they quite frankly didn't add much to what the books already addressed. Not to mention that the books are much cheaper than these financial advisors in the short- and long-run (but especially the long-run).
I'm still learning to manage my own investments, but it has proven to become a fun hobby.