There are very few careers as busy and essential as a physician in the world. But even though your days are packed with preventing illness and saving lives, your retirement is on the horizon, and the sooner you begin to prepare for it, the better those Golden Years will be.
Still, with your hectic schedule, it can seem like adding one more thing isn’t possible. How can you streamline your path to a financially healthy retirement without the unnecessary extras?
In this blog, we’ll share the simple tips that will let you focus on your career while growing your retirement savings in the background.
1. Start Today
It can seem like there’s never a good time to start putting money into savings. The house needs an update, someone in the family needs braces or car repairs, or the office staff is due for a raise.
No matter your expenses, you can start setting money aside for your retirement now. It doesn’t have to be much, and it may not seem like it’s enough to make a dent. But the compound effect of savings works whether you’re growing it or leaving it at zero.
Set a goal amount you’d like to invest, whether $100, $1000, or another number. Skip the coffee line, say no to a fast food meal, or find another way to save $5 today and put it aside for that savings. You’ll be surprised at how quickly you reach your goal and are ready to set aside even more for your future.
2. Find a Financial Advisor
While you can learn all about investing, it’s not necessary and definitely isn’t time-efficient. Instead, research the top physician-focused financial advisors online or in your area and schedule consultations with those who stand out. These companies should understand the goals and challenges of doctors and how to make optimal use of your physician benefits, as discussed in this article by OJM Group.
The right financial advisor will work with you to determine your goals, such as asset protection, tax-deferred growth, or short-term income tax reduction. They’ll then offer suggestions on the various ways to diversify your portfolio to achieve your short- and long-term goals.
Physicians often have options the average person doesn’t qualify for, including higher-income investments like real estate or angel investing. Your advisor will explain the advantages and disadvantages of each option and then do the heavy lifting of investing and monitoring your portfolio for you.
This means that after the initial meeting and approval of your investments, you only need to spend a few minutes occasionally touching base to know how your retirement savings are growing.
3. Invest in Insurance
Auto coverage and malpractice policies are frequently mandatory, but many optional insurances will protect your assets if problems occur.
For a few hundred dollars extra a month (on average), you can ensure that your savings and investments are allocated for retirement instead of emergencies. In addition to malpractice and auto, these policies will provide peace of mind in almost any situation:
- Health insurance: You’ve seen the dangers of subpar or missing health coverage firsthand. Don’t let this happen to you or your family. Invest in a policy with a low deductible or low out-of-pocket maximum, and stay protected from the financial blows of accidents and illnesses.
- Disability insurance: Take a minute to imagine what would happen to your family’s finances if you couldn’t work for a few weeks or longer. Disability insurance is usually inexpensive and pays you a specified percentage of your income if you are unable to work because of an injury or illness.
- Life and burial insurance: No one wants to imagine a loved one passing away, but this happens to everyone. Life insurance provides a death benefit to the beneficiaries to help them handle their loved one’s passing without the additional burden of financial stress. This is often used to pay for burial expenses, but burial insurance is also available with minimal premiums.
You may also consider adding business asset protection if you own your medical practice. Talk to your financial advisor and insurance agent to determine which coverage is best for your situation.
Conclusion
Aside from the initial time investment as you develop a strategy to plan for retirement, this part of your life can be easily balanced with your career. Set aside your emergency fund, and work with a financial advisor to build your savings. Over time, you’ll see how your money can work to create a future worth the hard work and long hours you’ve put in today.
