Professor of Medicine Maximizes His Consulting Income With a Strategic Tax Plan 

The story: A professor of medicine came to us knowing that there was more he could do to minimize his taxes – he just hadn’t gotten around to finding someone who could help him. He earned W2 income from his main employer, as well as a significant amount from consulting, resulting in “a lot of 1099s at the end of the year.” He had a lot of different accounts he was putting his money into, many without a clear purpose, and he wasn’t taking even the most standard deductions he could be. 

Tax Situation Overview:

Annual income: $1,000,000

Lifestyle expense: $600,000

Cash flow recovery number: $400,000

Initial effective tax rate: 31%

Annual tax savings: $205,000

“You know how doctors are very distracted and inattentive to things like this, but I’ve known for a while that I needed to do more due diligence in this area.” 

The outcome: The member reported feeling relief and excitement about his tax savings and his plan, especially knowing that he had everything in place to ensure his wife and children would always be taken care of.