- More than 70% of physicians aren’t contributing to a nonqualified retirement plan
- Nearly half of physicians can’t afford to max out their workplace retirement plan
- More than 60% are confused or unsure how to navigate financial planning for their future
As a medical professional, not adequately planning and saving now means that you will likely have to delay retirement or risk not having the funds the support the lifestyle you’ve become accustomed to throughout your career.
Start Now
One of the biggest mistakes medical professionals make when planning for retirement is pushing their savings goals further and further down the road, thinking that they’ll start saving when their income eventually increases.
Jared Empey, a financial advisor in Idaho, says, “When it comes to saving for retirement, time is one of the most valuable commodities that you can’t recoup once it’s gone. When medical professionals delay their retirement saving goals for years as they wait to really be able to “afford it,” they miss out on the time that their wealth could have been growing when invested in the right vehicles. One of the best things medical professionals can do is to start saving now to keep the element of time on their side.”
Consider the Tax Benefits
Medical professionals are no strangers to taxes—in fact, they are some of the most highly taxed individuals in the American work force. While there’s no one-size-fits-all solution for medical professionals to minimize their tax burdens, retirement savings are an often-overlooked solution. Tax-deferred retirement accounts can save medical professionals a significant amount in what they would have otherwise paid in taxes, making it more realistic to be able to afford funding a retirement account. For medical professionals who are in the highest tax bracket, they could potentially save $1 on their tax bill for every $2 put into a retirement account—that’s pretty significant.
Aim for a Percentage, Not an Amount
Although certain retirement accounts have dollar amount maximums that can be contributed each year, medical professionals would be better off if they planned on contributing a certain percentage of their income rather than a particular amount each year. If medical professionals make the commitment at the beginning of their career to always contribute a certain percentage of their income each year to retirement savings, then the correlating specific dollar amount will automatically increase as their total income gradually increases year by year throughout their career. Their retirement savings will increase without them making a conscious decision year after year about a specified dollar amount.
Seek Professional Help
Time is money, especially for medical professionals who often have busy, demanding schedules. Seeking assistance from qualified financial planners can be one of the best investments medical professionals can make to ensure they’re doing everything they can to maximize their wealth.
“There’s a lot of value in medical professionals seeking out financial planning professionals who work with clients specifically in their niche and are familiar with their lifestyle, goals, and outlook,” said [insert name], investment planner in Idaho. Working with a professional takes the stress away of worrying if you’re making the smartest investment decisions and choosing the best options for financial security now and into retirement.”
Planning for retirement doesn’t have to seem daunting or impossible. With the right level of commitment and professional guidance, any medical professional—no matter their age—can set themselves up for post-career success.
