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Save For Early Retirement

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How Physicians Can Plan and Save For Early Retirement

 

If you’re a physician and are in the early stages of your career, then it’s unlikely you’ll have started to think about retirement yet.

However, in this post, we’re going to demonstrate how ANY physician can plan ahead and save for early retirement. Do so, and not only will you build your wealth portfolio in a structured and upward way, but you’ll also have more control over your career, allowing you to reap the benefits of hard work both now, and later in life.

It’s worth bearing in mind, that while retirement may seem like a lifetime away, the earlier you plan, the more lucrative, and enjoyable your retirement will be, and if you put the work in now, you’ll find yourself able to live out your golden years in the most comfortable way possible.

Let’s look at some of the ways in which you can plan effectively for your retirement:

Save, Save, Save

It sounds like a given, but you’d be surprised how many physicians don’t have an effective saving plan in place, to aid them in later life. One of the biggest mistakes new physicians make is assuming wealth.

Fresh out of school and university, it’s easy for physicians to be overwhelmed by the amount of money they’re earning, and one of the downsides of this is thinking that there’s no immediate rush to begin saving.

However, the earlier you begin saving, the more sturdy your portfolio will look, and you’ll also find yourself able to GROW your wealth if you decide to make investments, like a lot of the smartest physicians, do.

Plan Financially

You may find the idea of financial planning a distant one – but it’s worth finding a financial advisor early on – and one you get along with, at that.

A good financial advisor will show you a number of smart investments, usually featuring minimal risk, and he or she will be able to look at your finances, and give you solid estimations of when you’ll be able to retire, from looking at your yearly finances.

Plus, if you’re looking to get a mortgage, and buy your first home, a financial advisor can help you with investments that provide both long, and short-term profits.

This can have a huge impact on your ability to live a happy, stress-free life, and will ensure that you don’t end up running out of money early on into your retirement.

Use an Early Retirement Calculator

Retirement calculators are great, not just for planning your actual retirement – but also because they give you a good indication of how much you should be aiming to put away a month in savings.

Some are complex, and some are simple; it’s worth choosing one of the more advanced ones, as they’ll give you a chance to input a ton of your financial data, giving you a far more accurate, and realistic prediction of both when you can look at retiring, along with the amount you should be looking to put away in order to prepare for that. Click here see an awesome Calculator! 

If you’re not happy with the numbers, then talk to your financial advisor. For example, if you need to put away $5K/month to retire at 55, consider how much more a month you need to save in order to retire at 50.

While you can’t predict the future and know exactly when you’re going to retire, it’s beneficial to have some rough ideas, so that you can effectively plan ahead.

Diversify Your Wealth

You’ve almost certainly heard of the term diversity when it comes to finances, and there’s no doubt that it’s one of the most effective ways to both grow your portfolio, alongside protecting it from ruin.

As the old saying goes… you should never put all your eggs in one basket…

And while it may seem tempting to simply save cash into various accounts, doing so will put you at greater risk, should there be financial collapses or recessions, and you’ll also sacrifice the ability to profit.

Some ideas for diversifying your wealth include:

  • Stocks and Bonds
  • IRA’s
  • 401 (k)s
  • Profit Sharing Plans
  • Real Estate

Your financial advisor will give you more details on the specifics of each of the above and will show you which are most suitable for your current situation.

Don’t allow yourself to be pressured into anything, and always take the time to do your research first. (This is why we say find a financial advisor who you can build a relationship with – this will not only ensure you’re getting the best, most transparent advice, but it’ll also make things a lot easier when it comes to actually making investments.)

Don’t Fret About The Future

It can seem daunting thinking about retirement or early retirement- there’s no denying that.

Still, while it’s important to plan ahead and think about what age you want to retire, it’s also important to avoid becoming too caught up in worrying about money.

Life is short, and the most important thing is that you enjoy your good health, and live a life you’re comfortable with.

How ANY Physician Can Invest

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How ANY Physician Can Invest … Without Financial Experience!

As a physician, you’re blessed with a unique number of advantages that most of the population simply don’t have.  Aside from – generally – a very decent income, you’ll also enjoy access to a range of financing options that simply aren’t available to most people…

But in this post, we’re going to take a look at ways you the physician can invest – even if you don’t have any investing experience, or don’t know where to begin!

Now, we’re going to focus on some of the more generic points in this post. If you feel as though you need specific, tailored advice for your situation, then it’s worth getting in touch with an experienced financial advisor, as they’ll be able to give you accurate information relevant to your specific situation.

Still, if you’re new to the world of investment, this article will serve as a great starting point – so, let’s begin!

#1 Build a Portfolio as Soon as Possible

You may think a portfolio is reserved for America’s “elite”… but the truth is, anyone can build their own portfolio… and the quicker you start doing so, the quicker you’ll begin to see a return, growing your wealth, and your income.

There are a number of ways you can start your first portfolio, and it can be as simple as investing in stocks or shares – but of course, this doesn’t come without risk, and you’ll always want to do the appropriate due diligence before risking any of your own money.

That’s somewhat beside the point of this article, however; the main things is that you do so SOON, as, the later you leave it, the less time (and chance) you’re giving yourself of growing a substantial nest egg, that you and your family can enjoy later on in life.

#2 Set Realistic (Yet Ambitious Goals)

One of the major problems faced by many investors is that they don’t have a clear, tangible, and realistic plan in place for their finances.

It’s all well and good investing your money – but if you don’t have any expectations, and aspirations, there’s a good chance you won’t have a clue what you’re actually trying to achieve, and that’s one of the reasons why we recommend you always set yourself goals, whether that be time-frame, or wealth-amount related.

If you opt to use a financial advisor (and you really should once you begin investing more money), they’ll be able to help you put plans in the place for the future.

These plans will typically take the form of 5-year plans but don’t be afraid to ask for goals to be set over shorter, or longer terms.

The more you’re prepared, the better you’ll be able to choose how much – and how often – to invest, and it can make a big difference in your ability to grow a portfolio if you have set achievable goals and targets.

#3 Minimize Taxes

None of us like to pay taxes – but unfortunately, it’s the law, and it’s not likely that’ll ever change!

To ensure that you’re paying as little tax as-is legally required of you, it’s well-worth getting a specialized tax advisor, who’ll be able to look over your investments and advise you on any areas where you’re paying needlessly.

Your financial advisor may also be able to help with this, although they are specialists in investments themselves, so, while they are likely to have good knowledge of the tax system, they too will likely recommend you seek an experienced tax advisor.

Now, you’ll likely to have a pay a fair amount of money if you want a GOOD tax advisor, who’ll save you a substantial amount of money – and while it may be unsettling to see yourself spending so much on things like this, it’s worth noting that in almost all cases, you’ll save more than you spend – so, generally, it’s worth doing.

#4 Stick With Your Investment Plan

Yes, it can be daunting to see your money tied up in investments. It can be scary to leave your funds at risk, during turbulent financial times…

But one of the biggest mistakes that can be made by new investors, is withdrawing their funds too early.

Maybe you see a small profit, and want to ‘run with a profit while you can’… or maybe you see your investments falling in value, and want to ‘save them’…

Whatever your reasons for wanting to withdraw, the majority of the time, it’s in your best interests to see it through and play the long-game.

Of course, your financial advisor will be able to give you tailored guidance on your specific situation – but even then, you always have the final say, and before you even think about entering the investment game, you need to tell yourself that you are in it for the long-run, NOT the short-term.

Try your best to stick with your investment plan – even when you’re tempted to cash-out – and while it’s OK to sell up and run with a profit, if you do want to build substantial wealth for the future, and grow your wealth portfolio, you should always try your best to stick to the plans set in place when you initially invested.

That’s just a few different things to remember before making your first investment. Remember, as a physician, you’re likely to have a fair amount of money free each month to invest – and the more you do so, the more wealth you’ll create later on in your life, so while it can be tempting to spend now, and live a lavish life, just think about the future, and plan ahead.

You’ll be thankful for it later in life, and if you invest smartly – with the help of a trained financial advisor – you could see far more profit, in a lot less time, than you probably think!

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