According to a recent report prepared by the American Medical Association Insurance Agency, nearly half of the physicians who responded to a recent survey consider themselves behind in preparing for the financial future of themselves and their families. The survey results indicated gaps in personal financial knowledge and lack of confidence in financial decisions related to retirement savings, life and disability insurance coverage and estate planning.
Only half of the physicians reported reviewing their personal finances on a quarterly basis, while less than 30% reviewed them annually and less than 15% only reviewed them ‘as the need arose.’
In the report, only 6% of the physicians said they are ahead of schedule in retirement planning. More than half, particularly those under the age of fifty, stated they are behind in planning and saving for retirement.
Physicians under 40 were very concerned about having enough money for retirement, paying off their own medical school debt, funding children’s college educations, taking care of aging parents and having enough life insurance.
“It makes sense that physicians would have little time to spend on their own financial situations,” said J. Christopher Burke of the AMA Insurance Agency.
Planning for retirement is not just a matter of building up a large sum in a 401(k) or profit sharing plan. In addition, many physicians and dentists have a substantial amount of equity in their practices – an asset that can potentially be converted into an income stream during retirement years.
At Plotkin Financial Advisors we help physicians and dentists prepare not only for retirement, but also a profitable exit strategy for their practices.
For more information contact Shim Plotkin, CFP® at 301-907-9790 or by email at firstname.lastname@example.org.
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