Simon Wealth Group | Helping Medical Device Reps Manage Money Efficiently

A lot of med reps tell me the same thing. “I make good money… but I have no idea where it all goes.” When your income varies from month to month, managing money can be a challenge. Here's a few habits that have worked for me personally, and for my clients. 𝐊𝐧𝐨𝐰 𝐘𝐨𝐮𝐫 𝐍𝐮𝐦𝐛𝐞𝐫𝐬 - Write out a budget, even a simple one - Break expenses into needs, wants, and savings/investments 𝐀𝐮𝐭𝐨𝐦𝐚𝐭𝐞 𝐄𝐯𝐞𝐫𝐲𝐭𝐡𝐢𝐧𝐠 - Bill payments, savings, and investments should happen without thinking. - I like to cluster all my bills by paying them on the 1st and 15th - this keeps things simple for me. 𝐔𝐬𝐞 𝐂𝐫𝐞𝐝𝐢𝐭 𝐂𝐚𝐫𝐝𝐬 (𝐫𝐞𝐬𝐩𝐨𝐧𝐬𝐢𝐛𝐥𝐲) - Pay everything on a credit card, then pay it off in full each month. - If you have business expenses, use one card for work and one for personal. You don’t have to stick to a budget perfectly. But you should have a good idea of where your money is going... no matter how much you make. A fluctuating income doesn’t have to mean financial chaos.

Restricted Stock Units (RSUs) can be confusing. I see med reps who have gotten them for years but know very little about how they work. So here’s a quick breakdown of RSUs. 1) You don’t own them right away RSUs might get granted to you today. But they don’t actually belong to you until they vest. Think of it like a surgery with a long recovery - you got the procedure, but you don’t get the full benefit until time passes. 2) Vesting = When you actually get the shares Most companies have a vesting schedule, meaning you receive your shares over time. A common vesting schedule I see in MedTech is 4 years, with 25% vesting per year. If you quit before the shares fully vest, you could leave money on the table. 3) Taxes can sneak up on you RSUs are taxed as income when they vest. That means Uncle Sam gets his cut, even if you don’t sell a single share. Make sure you have a plan to pay them. Selling some shares to cover taxes is common, but it may not be enough if you're in a high tax bracket or a state with high income taxes. 4) Holding too much company stock is risky Your paycheck already depends on your employer. If your investments do too, one bad quarter could hit you twice. This is even more true if you're also buying into your ESPP, you can quickly become overloaded on one stock. 5) Here's an example Let’s say you’re granted 1,000 RSUs with a four-year vesting schedule (25% per year). Year 1: 250 shares vest, and you owe taxes on their value. Year 2: Another 250 shares vest, more taxes due. Year 3 & 4: Same thing. By the end of four years, you finally own all 1,000 shares, as long as you didn't leave the company. A good rule of thumb is to treat RSUs like a cash bonus. If your company gave you a $10,000 cash bonus, would you use it buy $10,000 of company stock? If not, then selling the shares upon vesting to take the cash instead might be the better move for you. RSUs can be a great wealth-building tool, but make sure you manage them wisely.

Almost every veteran med rep I know wants to retire early. They all loved their job at some point and many still do. But they want the freedom to work less. There's a difference between working because you want to and working because you have to. If you love your job, that's great. You may think you want to do it forever. But even if that's you... you should plan to retire early. Because things change. - The industry might change - Your priorities might change - Your body might not want to hustle like it used to. What you want to have is options. The option to take a step back and pursue other things. Or the option to completely walk away if you need to. And the best time to start planning for that? Way before you think you need to.

When I was in 6th grade, I started a fire in the woods. Even though I was a smart kid, I didn’t always make smart decisions. As the fire spread, my friend and I tried to handle it ourselves rather than asking for help. Then things got out of control. A firetruck showed up. Cops came too. I even think an ambulance came for some reason. Luckily I never got in serious trouble (and no one got hurt), but it easily could have been much worse. All we had to do was ask for help before it got that far. A lot of med reps treat their finances the same way. - Credit card debt that keeps growing - Turning off 401(k) contributions during tough times - Overpaying in taxes every year with no plan to stop it - Letting expenses spiral out of control with lifestyle creep Instead of asking for help, they wait until it’s a full-blown emergency. Sometimes, all it takes is the right person stepping in before things go up in flames. Be careful playing with fire when it comes to your finances.

Nobody wants to play a game where the rules change halfway through. But this is what the government does when they change tax laws. If you’re putting money away in a pre-tax account (not Roth). You’ll eventually be taxed at an unknown rate in the future. That’s why I like Roth accounts. This doesn’t mean Roth is the right way for everyone. But it’s something to consider if you think tax rates will be higher in the future than they are today.

Medical device reps with 10+ years of experience all tell me the same thing. “I make good money but feel like I have little to show for it." “I want to retire early but think I’ve waited too long to plan for it.” “Am I too late to turn things around?” But if you're earning $200k+ and don't have a crazy amount of bad debt. With just a little bit of discipline and focus, you can get back on track pretty quickly. Take my 3 clients in similar positions: - In just 9 months, Alex and Nicole paid off $40k of student loan debt - In just 6 months, Tom and Mary saved $10k for their kid's college and put $20k into their emergency fund - In just 1 year, Bill and Brianna got their wills done, protected their family with life insurance, and put away $20k towards retirement These are real results I’ve helped clients achieve. Sure, some things could’ve been better if they got started earlier. But it’s not about how you start, it’s about what you do next.

Most homeowners know they can tap into their equity through a home equity loan. But did you know you can do the same thing with other assets? It’s a strategy the top 1% use all the time. - Real estate - Stocks and bonds - Even art collections A HELOC lets you borrow against your home. An SBLOC lets you borrow against your investments. Selling assets can trigger taxes and disrupt your strategy. But borrowing against assets keeps your money working for you while providing liquidity. Like a credit card, no interest is due until you use the funds (in many cases). So in the right situation, it can be a powerful tool. I often recommend having the line of credit open at all times. Whether or not you plan to access it. Just make sure you know the risks before leveraging your assets.

A lot of W2 reps want to go 1099. But they're not sure what to expect. Here's some tax tips to know if you're 1099 or an independent distributor. - Keep separate business and personal bank accounts - Consider a separate credit card for business expenses - Track all your expenses (quickbooks, excel, bookkeeper, etc.) - Save a percentage for taxes from all income - Pay your estimated taxes quarterly - Do tax planning throughout the year, finalize things by end of year The jump to 1099 comes with more freedom, but also more responsibility. If you don’t plan ahead, taxes can take a bigger bite than you expect. Get organized early and stay on top of your finances. That way you can keep more of what you earn.

Having life insurance through your job is a nice perk. But it’s probably not enough to protect your family’s lifestyle. Think about it. You have a $150k base and make another $100k in commissions. Your 2x salary life insurance? It’s only on your base (most likely). That means you have $300k in coverage. But my average client has: - $500k mortgage - $20k in car debt - $30k in student loans Many want their kids going to private schools and good colleges. And they also want to leave behind a legacy. So that $300k of life insurance and a few hundred thousand in your 401k? It's just not going to cut it.

Most medical device reps invest in their 401(k). But how many invest in themselves? Just finished 𝑀𝑎𝑠𝑡𝑒𝑟𝑖𝑛𝑔 𝑀𝑒𝑑𝑖𝑐𝑎𝑙 𝑆𝑎𝑙𝑒𝑠 by Mace Horoff. And it’s a must-read for every med rep. - Surgical or Non-Surgical - Big company or Independent rep - Trauma, Ortho, Capital Equipment, Wound Care, etc This book gives practical advice you can start using right away. And it also has strategies for building long-term success. My main takeaway for med reps 👇🏼 The best reps never stop improving, and in the healthcare world, sales skills alone won't do it. You need technical skills and clinical expertise to truly stand out. My main takeaway for myself 👇🏼 Storytelling is the way. Mace uses stories so well in this book, and it really makes his lessons stick. If you’re in medical sales and want to level up... read this book. Investing in yourself is the best investment you’ll ever make.