We talk a lot about retirement goals, and for good reason. If you have a plan in place, it’s much easier to retire at the age you want. But simply reaching retirement age and retiring is only the first half of it. Living comfortably in retirement is the end goal of saving, and your plan should ensure you reach that goal.
There’s no magic rule for retirement savings, as you may need to save above and beyond the standard 401k/403b and Roth IRA funding. Each individual will have different goals and time horizon, but a good rule of thumb is to plan to save 15-20 percent of your gross income per year to comfortably live in retirement without worry. Again, everyone is different.
It can be beneficial to have a target age in mind when you’re crafting your retirement strategy. Some doctors want to retire as soon as they can; others may enjoy their work and plan to work longer. When you’re choosing a target age, you can then determine the action you need to take now.
If you’re a doctor starting your career, it can benefit your retirement strategy to understand what your monthly cash flow will look like as you’re starting out. It can be quite a shift going from resident to in-practice. If you understand the dollars flowing in and out of your account, you can properly budget for things like loan repayment, risk management costs, and paying off other debts.
If you’re later in your career and you’ve found that your retirement plan isn’t where you’d like it to be, or maybe you got a late start, there are ways to recover. Getting a second opinion from your financial advisor can be key to making corrections to your strategy, including assessing your risk allocation, properly diversifying your investments and reviewing your goals annually.
Regardless of where you’re at with your plan, it’s important to consult with your advisor. Oftentimes, we’ll read financial articles and they could inspire us with false confidence or an overwhelming sense of dread, depending on market shifts. Your advisor can help keep you grounded and sticking to your plan is almost always the best course of action.
Are you on track to live comfortably in retirement?
Advisory services offered through Larson Financial Group, LLC, a Registered Investment Advisor.
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Larson Financial Group, LLC, Larson Financial Securities, LLC and their representatives do not provide legal or tax advice or services. Please consult the appropriate professional regarding your legal or tax planning needs.