In Agili’s latest video, Retirement Tips for Young Doctors, Principal and Financial Strategist, Jamie Malone, shares important financial planning recommendations for doctors early in their career.
The complete video transcript is below in italics.
Hi. My name is Jamie Malone with Agili. Today, I would like to share a few retirement saving pointers tailored specifically toward young physicians.
Save At Least 20%
First, how much should you save? Many financial professionals recommend saving 15% or more of your income. But doctors, who often spend 7 or more years in medical training start out later than the typical college graduate. Therefore, it’s been my experience that you’ll need to save more than this. I suggest saving 20% or more of your income. But remember, this includes your savings as well as any employer contributions.
Take Advantage of Employer Plans
…which leads me to my next point. Take full advantage of your employer retirement plan. Many hospitals and practices offer retirement plans with significant matches or employer contributions. Make sure that you understand your plan and take full advantage of its benefits. Plus, some organizations may offer additional retirement plans, such as a 457 or a cash balance plan. These will allow you to put away more than you could typically in a typical 401(k) or 403(b) plan.
Automate Your Savings
Third, automate your savings. Whether saving to a retirement plan or another savings vehicle, make sure that you set up your savings to take place on a regular interval, such as around a paycheck. This way, savings becomes part of your regular cash flow.
Set a Goal
I realize saving 20% or more of your income may feel overwhelming, especially if you are trying to pay off student loans. Evaluate where you are and set a goal. You’ll find that simply increasing your savings a little bit over time will have a tremendous impact.
Consult a Financial Advisor
Many of the young doctors I work with are extremely busy. If you feel overwhelmed, you may find it beneficial to work with a financial advisor to help customize your plan and help partner to reach your financial objectives.
I hope these pointers have been helpful. Thank you.
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