Providing adequate funds for retirement has become the primary investment objective of everyone, regardless of age. Yet ensuring this outcome requires time, research, and well-informed decisions. Physicians who face continuing study in their medical specialty, and increasing time constraints, find it helpful to entrust retirement planning to trained experts.
The primary source of retirement income is likely to be the funds accumulated in your Employer’s qualified retirement plan. These plans can be of various types: profit sharing, 40l(k), money purchase pension, target benefit, etc. Your Employer’s plan may or may not provide you with the most advantageous accumulation of funds. Due to the complex nature of their occupation and their hectic schedules, physicians are especially prone to neglect this aspect of their retirement planning. Those who start early in their careers are more likely to have sufficient funds to maintain their accustomed standard of living.
Individual Retirement Accounts (IRA) do not generally comprise a major portion of a physician’s retirement program because of the current income tax limitations on funding these accounts. Those with IRA Rollovers, however, may be interested in learning more about various options and should contact us directly with the details of their particular situation.
For many physicians, funds accumulated in an Employer’s qualified plan (even including IRA assets) will not be sufficient to maintain the desired level of retirement income to maintain their lifestyle. Additional assets need to be created and the sooner, the better.
Once you determine what additional money needs to be contributed each year, the next major task is to efficiently and prudently invest those resources. There is a right and a wrong way to develop an investment program. To obtain helpful ideas about creating an appropriate asset allocation model for you, please see the Retirement Income Survival Kit™ process video: