Investing Tips for Pharmacists

Tim Ulbrich, PharmD and financial advisor, discusses his tips for pharmacists on how to invest wisely.

Tim Ulbrich, PharmD: Hi, my name is Tim Ulbrich, co-founder and CEO of Your Financial Pharmacist, co-author of the book Seven Figure Pharmacist, and host of the Your Financial Pharmacist podcast. Pharmacists know the importance of saving for the future, but it is easy to get overwhelmed. 401ks, 403bs, Thrift Savings Plans, Roth IRAs, health savings accounts—what do these terms even mean? How much do you need to save each month? Should you start investing in your employer-provided 401k, or would you be better off opening a Roth IRA? What is the best way to prioritize your savings with so many options? These are great questions, and if you find yourself wondering the same thing you are not alone.

When it comes to the priority of investing, we suggest that you first use the employer match within a 401k, 403b, or Thrift Savings Plan, as it is free money and should be a priority in your financial plan. Then we recommend that you consider maximizing the benefit of the health savings account, as it carries a triple tax benefit and is a powerful tool for investing. Third: Roth IRA and Roth 401ks can be used, too, as they offer tax-free savings over time. You will pay the taxes today, which is the opposite of a 401k, 403b, or Thrift Savings Plan, and this allows your money to grow tax-free. After that, consider maxing out your traditional 401k and then a SEP-IRA. Still have more to invest? It’s time to consider a brokerage account.

It is important to note that everyone’s situation is different, and investing is only 1 part of the financial plan. Therefore, different options may work better for you than those just mentioned. This is meant to be a framework, not investment advice. You can learn more about how to prioritize your investments by checking out the Your Financial Pharmacist podcast, available on Apple Podcasts or wherever you listen to your podcasts. Furthermore, if you are looking to work with a financial planner who specializes in pharmacy professionals, visit yfpplanning.com to get connected to one of our fee-only certified financial planners.