Typically, society tends to associate “wealth” with large paychecks or high earnings. However, true wealth and financial independence are not generated by the amount of money you bring in, but by how you manage that money. Many high-earners have a much lower net worth than you might expect, largely because of a few common mistakes that high-income earners tend to make.
Often, people’s biggest fear when approaching retirement is that they will outlive their savings. This is a valid concern for many, considering that the average investor is far behind where they should be for a secure retirement. At Idaho Medical Association Financial Services, we offer financial planning for physicians and healthcare professionals in Canyon County and the surrounding areas. We help people ready themselves for the future every single day. One financial asset that many people have questions about are annuities.
After years of schooling, residencies, and accumulating student debt, physicians enter the workforce. They begin their careers with large salaries and tremendous upside potential; however, late entry into the workforce leaves medical professionals roughly a decade behind their peers when it comes to saving and investing for retirement.
Contributing to your employer’s 401(k) plan can create the foundation of your retirement savings. Often, your employer will offer a company match that can help you reach your retirement goals. At Idaho Medical Association Financial Services, we believe that these plans are a great tool in saving and planning for retirement.
Doctors enter the workforce in a unique position; after years of school, residency, and student loans, they finally begin their practice and start bringing in real paychecks.
Due to their delayed start of their full wage-earning years, physicians and surgeons often get a late start on saving for retirement. Paying off student loans can also push retirement savings to the back burner. Nevertheless, your career as a medical professional provides you with the opportunity to not only catch up on retirement saving but to soar ahead (as long as you play your cards right).
So where do you start? If you are a doctor in your 40’s, here some guidelines for how much you should save and how to get there.
At Idaho Medical Association Financial Services, we know retirement is full of unknowns; you cannot predict how long you will live, how markets will oscillate, or what the rate of inflation will look like in future years. Variable factors like these create confusion as to how retirement should be planned and prepared for.
The good news, however, is that there are some things you can count on. For example, you have control over how long you decide to work, when you start saving, and what investments you make. As you focus on maximizing the factors you can control, you can ensure that you do not outlive your money during retirement. What’s more, you can provide yourself with a retirement that is comfortable and financially secure.
As you prepare for retirement, implement these four tips to make sure that you do not outlive your money.
Many people have misconceptions about financial planning that hold them back from meeting with an advisor. Perhaps they feel that they are too busy, they have had negative experiences with advisors in the past, or they feel that they know enough to do it themselves.
Whatever the reason, consider this: Americans with a long-term financial plan are more than twice as likely to feel “very confident” about reaching their financial goals*. Meeting with a planner can guarantee a financial plan that ensures peace of mind now and financial stability in the future.
This being said, here are four common misconceptions people have about financial planning that may prevent them from enjoying the benefits of this service.
Nearing retirement brings many questions and not all of them involve when to visit the grandkids or how to plan for that trip to Hawaii. Instead, many of them are centered around finances. Specifically, many future retirees are wondering about Social Security.
Although the Social Security program focuses on providing financial support for retirees, Social Security-based decisions often bring more stress and confusion than peace of mind. Nevertheless, education is a tried-and-true antidote for confusion. As you plan for retirement, consider asking these questions to get the most out of Social Security.
You’ve probably heard it before: the very first aspect of financial security is having an adequate emergency fund.
Having proper cash reserves can solve a multitude of life’s expected problems, whether your transmission blew up while leaving for your family’s cross-country road trip or your job got the axe in the latest round of layoffs. But how much should you keep in reserve for emergencies? And where’s the best place to put that money in the meantime?
Although investing may seem like a guessing game, there are consistent principles that promote reliable long-term outcomes. As you consider investing to save for your personal financial goals, understanding these principles can enable you to meet your long-term financial goals with your investments.