By Erick Cutler
Among all the other decisions that dentists have to make, choosing a retirement plan is one of the most important. You work hard, and your life after practicing dentistry should be representative of that. Unfortunately, poor money management and a lack of a long-term plan can mean money troubles for even the most successful dentists.
As a professional, life after retirement should be the reward for a life of good work. Starting a retirement plan as early as possible is a key part of your fulfilling life after work. These strategies can help you build a plan that will ensure your financial security and stability for years to come.
1. Work with a financial advisor you trust.
As a self-employed professional, you don’t have an HR department to rely on for retirement advice. Finding a good financial advisor can make all the different in the success of your retirement plan. After some widely publicized scandals in the industry, it is important to find an advisor that you can trust. According to Forbes, a Registered Investment Advisor (RIA), a Certified Financial Planner (CFP) or Investment Advisor Representative (IAR), are good choices for retirement planning. These professionals are “held to the highest ethical standards in the financial services industry.”
2. Plan early and watch closely.
You can never start planning your life after dentistry too early. It may seem like retirement is light years away, especially if you’re still paying off student loan debt, but you should have a plan in place as soon as it is financially feasible. It is important, though, to consider which investment products are best for you as a dentist. Thorough research of the market is important, as is staying up-to-date on retirement investment trends. Long-term investments, like 401k savings plans, are a safe choice that can help you ensure a secure retirement.
3. Plan for your physical health, too.
Planning for your financial future is important, but it’s also important to consider your health. If you are nearing retirement, planning for health insurance is just as important as making good financial investments. If there’s a gap between your retirement age and 65, you’ll need to have coverage in the interim before Medicare kicks in. Most Medicare recipients also benefit from having a supplemental insurance policy, so it’s important to review those options carefully. And of course, staying fit and healthy will make your retirement more fulfilling.
Even though it may result in less take home pay in the short-term, your investments in your retirement will benefit both you and your family in the long-term. Planning for retirement early in your dental practice will help save you both worry and potential financial hardship.
Note: This content is accurate as of the date published above and is subject to change. Please seek professional advice before acting on any matter contained in this article.