“RARE” Syndrome: Resident to Attending Risk Evolution

In this video, Ben introduces the concept of RARE Syndrome: Resident to Attending, Risk Evolution. It describes the shifting risk profile of physicians as they transition from residency to becoming attending physicians.

Typically, individuals should have a higher risk profile when they are young and decrease their risk as they approach retirement. However, as the founder of a firm specializing in financial planning for physicians, Ben often sees a different pattern. During residency and early attending years, physicians tend to have a lower risk profile due to minimal income and uncertainty about their financial situation. As they progress in their careers and start earning significantly more, their understanding of finances improves, leading to an increased risk appetite.

Ben advises young physicians to resist this temptation and instead adopt a higher risk profile early in their careers, reflecting a long investment horizon. This approach can lead to better portfolio performance in the long run despite potential volatility.