If you are married or in a serious relationship, you likely have felt the toll that financial stresses can have on a relationship. Where to allocate money, who manages what, bills, paying off debt, one partner spending more than the other… the list goes on and on. Finances can be a touchy subject for many couples.
When it comes to preparing for the future, we are all told to save, save, save. But opinions differ as to how much you need to save in order to achieve financial independence. Additionally, every person deals with money differently; some tend to be more frugal while others have no qualms about spending freely. As the preferred financial advisors for doctors in Canyon County, we’re here to tell you about the 30% rule to help you save big.
Traditional, Roth, 401(k), IRA…each of these retirement account designations has its pros and cons. And when it comes to planning for retirement, you want to be sure you are getting the most out of your savings. The best choice for you will depend on your particular circumstances, and earnings.
Regardless of your annual income, wealth management for doctors in Canyon County can be a tricky subject. Contrary to common belief, merely earning a substantial paycheck is not enough to ensure one’s future financial security; in fact, high-earners are often more prone to overspend and make other costly financial mistakes due to having an inaccurate sense of savings stability.
Nevertheless, there are simple habits you can implement into your daily life to increase the amount of money you contribute to your savings accounts. As you evaluate your financial standing, consider these four ways to allocate more funds towards your long-term savings goals.
A recent study conducted by the Insured Retirement Institute * revealed that as Baby Boomers are now entering or nearing retirement, they are grossly under-prepared. In fact, findings show that 45% of Boomers have zero retirement savings. Of the 55% that have saved some, many have massively underestimated the amount that they will need to make it through their retirement years. Getting professional financial assistance can help prepare you for retirement.
According to the study, Boomers’ lack of preparation stems from misjudging how much annual income they will need, underestimating health-care and long-term care costs, and failing to work with a professional.
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.