4 minute read
4 minute read
You've likely noticed a nice benefit to completing your residency – the increased salary! With the average starting salary for many physicians being at least $150,000 to upwards of $300,000 (if not more) physician investing is certainly a serious topic. This begs the question though of when to start. If you follow conventional wisdom, the time to start investing is now.
You might be tempted to put off investing for some time, and that's understandable as you're likely busy starting your new life. In this busyness, don't wait to invest as it can cost you a significant amount of money.
For example, if you're able to invest $2,000 per month with a conservative 7% return per year for 30 years, that will result in a portfolio of $2,352,130, but if you wait to invest for five years that same invested amount would result in a portfolio of $1,574,939 – or a difference of $777,191. Shocking, huh?!
Five years may not seem like much time, but in terms of physician investing it could mean close to $1,000,000. Don't allow yourself to fall for that cost.
Each investor has their own unique set of challenges and opportunities. Physicians are some of the highest income earners in our society and face greater threats to their money than the general population. The effects of being in a higher income tax bracket and at greater risk of a lawsuit makes strategic planning for your investments even more important. A carefully developed investment plan can help you decide how much to invest, which investments meet your needs for safety and growth, and how you can most efficiently deal with taxes.
You've also likely noticed that your time as a physician comes at a premium. Working with a physician-only financial advisor can help you invest according to your unique needs as a physician and ensure your minimal free time is not spent pouring over your investments.
There are many options to look at when it comes to investing; from stocks and bonds to mutual funds, there are thousands of options. This is where a financial planner for physicians can uniquely assist you. They can help you narrow down what your needs are, and help you come up with a balanced investment plan that suits your needs as well as risk tolerance. This is also considering the need to keep costs down so more of your money is working for you as opposed to paying hefty fees that will eat into your returns. Many are overwhelmed when it comes to investing, but it can easily be simplified if the appropriate resources are utilized.
If you have a need for assistance with physician investing, then contact one of our fee-only advisors who can help you set up a plan and avoid the cost of waiting to invest.