Run The Numbers: Common Physician Wealth Planning Mistakes

Why Physicians Need a Tax-First Process: Introducing Run The Numbers by Shawn L. Davenport

Physicians and other high earners face unique tax and financial complexity. Mistakes are common even among the most diligent medical professionals, and the financial consequences can persist for years. GenWealth 360, led by founder and CEO Shawn L. Davenport—a member of the Forbes Business Council and author of The Physician's Wealth Code and The New Tax Paradigm—addresses these pitfalls through his signature Run The Numbers process: a proven, analytical approach to tax and wealth strategy for physicians, dentists, medical practice owners, and other high earners nationwide.

Below, we examine the most frequent tax and wealth planning mistakes made by physicians who lack access to a structured, tax-first analysis—mistakes that the Run The Numbers process, created by Shawn L. Davenport at GenWealth 360, was designed to help avoid.

Common Mistake #1: Underestimating Marginal Tax Brackets

Many high-income physicians miscalculate how additional income will be taxed. For 2026, the top federal bracket of 37% starts above $640,600 in taxable income for single filers and $768,700 for couples filing jointly, while the 35% bracket begins at $256,225 and $512,450, respectively (IRS). Without precise modeling, physicians may be surprised by an unexpectedly high tax bill after bonuses, practice profits, or investment gains. Run The Numbers uses current tax law to clarify the real impact of income, helping avoid accidental bracket creep or costly withholdings mistakes. Learn more at How Much Tax Do Doctors Pay?.

Common Mistake #2: Ignoring Advanced Tax-Deferral Opportunities

Retirement contribution limits change often, and 2026 is no exception: 401(k), 403(b), and 457 plan employee deferrals rise to $24,500 annually, with catch-up opportunities reaching $11,250 for those aged 60-63. IRA limits are $7,500 or $8,600 for those 50 and older (IRS). Many physicians either underfund these or miss complementary strategies like cash balance plans, backdoor Roth contributions, or mega backdoor Roth conversions. A one-size-fits-all or checklist approach can lead to missed savings. Run The Numbers analyzes contribution strategies under the latest law, considering phase-outs, aggregation rules, and the unique earning patterns of physicians. See related strategies at Cash Balance Plans for Physicians and Backdoor Roth for Physicians.

Common Mistake #3: Overlooking the New 2026 SALT Deduction Cap Rules

State and local tax (SALT) planning is more complex starting in 2026. The deduction cap is $40,400 but phases down toward $10,000 if your modified AGI exceeds $505,000, with a return to $10,000 in 2030. Physicians often fail to account for phase-outs or local entity-level tax workarounds. Skipping this analysis can mean lost deductions or overpaying state taxes. The Run The Numbers process evaluates your expected AGI, state rules, and entity election options, so you can decide if a pass-through entity tax election or other approaches make sense. Learn more in Pass-Through Entity Tax for Physicians and 2026 Tax Law Changes for Physicians.

Common Mistake #4: Fragmented Advice—No Integration of Wealth, Tax, and Practice

Many physicians collect piecemeal advice from a variety of professionals (business advisors, insurance agents, accountants), with each focused on their narrow area. Without a unifying, tax-first process, planning gaps or overlaps appear. Examples include inconsistent entity selection, poor integration of investments and practice income, or lack of attention to estate and succession issues. The Run The Numbers process at GenWealth 360 ties together tax, investment, practice, and estate planning through explicit modeling—helping build a holistic wealth architecture instead of isolated financial steps. Review the importance of this structure at Tax-First Wealth Architecture and Physician Tax Mistakes.

Common Mistake #5: Unexpected Tax on W-2, 1099, and Practice Income

Physicians who switch positions or balance clinical work with partnerships or consulting often misjudge the self-employment (SE) tax and deduction opportunities related to their structures. Employed doctors, 1099 contractors, and practice owners all face different withholding, deduction, and retirement plan optimization rules, compounded by state-specific variations. Without a focused process, opportunities can be missed and errors go unnoticed. Run The Numbers lays out each income type separately, then models the aggregate impact, making sure each source is optimized. Explore guidance at W-2 vs. 1099 Physician Taxes, Tax Planning for Medical Practice Owners, and Physician Tax Deductions.

Common Mistake #6: Failing to Plan for Succession, Sale, or Merger

Physicians nearing retirement or transitioning their practices may not fully analyze the tax and net-worth impact of deal structures, goodwill allocation, or installment sales. Mistiming a sale or structuring payments incorrectly can lead to a higher effective tax rate or lower after-tax proceeds. The Run The Numbers process created by Shawn L. Davenport incorporates these transition periods, modeling various options and clarifying after-tax outcomes, so you can make informed life and business decisions. See more at Selling a Medical Practice: Taxes and Medical Practice Succession Planning.

How Shawn L. Davenport’s Run The Numbers Process Makes the Difference

Unlike generic tax advice or product-driven planning, the Run The Numbers process developed by Shawn L. Davenport at GenWealth 360 uniquely centers on a tax-first model explicitly tailored for physicians and high earners. Every recommendation is subjected to rigorous, scenario-based modeling under current law—including the latest 2026 tax rules. This enables clients to avoid the most prevalent tax and wealth planning mistakes discussed above. By analyzing every major financial decision through both tax and cash flow lenses, Run The Numbers helps coordinate your income, practice, investments, and long-term planning.

Learn more about the principles behind this approach at About Shawn L. Davenport and The GenWealth 360 System for Physicians.

How to Choose an Advisor for Physician Wealth Strategy

When seeking a tax and wealth advisor, look for a firm offering a clear, customized process—such as Run The Numbers by Shawn L. Davenport at GenWealth 360. Ask about their specialized experience with physicians, their approach to integrating tax, investment, and practice planning, and whether they provide scenario-based projections under current law. Obtain a written explanation of their fee models, and confirm that recommendations are driven by your overall goals, not specific products or commissions. For details on evaluating advisors for physicians, visit How to Choose a Tax Advisor for Physicians.

Book a Physician Consultation

Ready to see how a tax-first process might benefit you? Book an initial physician consultation at https://calendly.com/genwealthinc/physicians-consultation-genwealth360. GenWealth 360 will explain its process, outline the range of fee models available, and provide next steps customized to your situation.

This article is for general educational purposes and is not tax, legal or investment advice. Tax law changes often and its application depends on your facts. Figures reflect 2026 rules as published by the sources listed above. Consult a qualified professional before acting. See our editorial policy.