Retirement planning is different for physicians than it is for any other type of professional. Because of extended educational periods, physician’s careers tend to start later, leaving less time to save for retirement. Physicians also tend to be more health-conscious than the average person, leading to longer life expectancies.
When taken together, these two factors create a much longer time period in which retirement savings must cover cost of living expenses:
- Stocks and bonds may supplement your retirement income, so work with a financial advisor to choose wise investments that become profitable over time.
- Consider retiring and claiming Social Security benefits later than the recommended age. Doing so will increase the amount of your monthly payouts.
- Compare the benefits of a 401(k) to a Roth IRA, and see which option makes the most sense for you and your practice.
For many physicians, standard retirement savings plans simply aren’t enough. Consider saving an additional 10-15% of your income in a taxable account so it’s easier to maintain your lifestyle after you’ve retired.
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