Retirement saving tips for young physicians

Young physicians may struggle to properly plan for their retirements due to the fact that they begin their careers later than most other professions, tend to carry more in student loans, and often lack the free time to dedicate to financial planning. AMA Insurance recently published a report on physicians’ financial preparedness that included responses from more than 2,300 practicing physicians.

By comparing the responses of physicians who reported being ahead of schedule with their retirement savings to those who were behind, the report suggested physicians do the following:

• Use a professional financial advisor. Two-thirds of the physicians ahead with saving use a financial planner.
• Contribute the annual maximum amount to your 401K/403b. Twice as many physicians who are ahead with saving contribute the maximum to their qualified plans.  
• Carry less business or practice debt, credit card balances, mortgages, car loans, and home equity loans. Physicians who are behind with retirement saving tend to carry more debt.

Source: AMA Wire