Prolfic Solutions NY - Financial Planners for Physicians

Part Two: How To Picture, Plan and Achieve The Retirement Lifestyle You Want

In Part One, we covered picturing your ideal retirement and how a trusted financial planner can help you achieve it. This blog covers in greater detail how to optimize your planning process and relationship with a financial planner.
Retirement Lifestyle

While many physicians earn and save well, they may still find themselves behind in their retirement planning. For instance, consider one physician couple with a total family income is $1.2 million. They have a $3 million home and are saving $60 thousand per year. Money at this stage in life is not a problem for them. They spend as they wish, no need to think about it. When they realized they needed to think about their retirement, a physician lifestyle planner provided what they lacked: structure.

An actionable plan was created to:

  • Help the couple understand how they are going to accomplish all of their goals
  • Set priorities, as expert planners can find the things that aren’t obvious
  • Determine trade offs
  • Maximize tax savings
  • Help protect their legacy for future generations


Know Where You Stand

In planning, it can be useful to begin with an expense exercise to see how much you’re spending on a monthly basis. This helps to understand how much money you’ll need monthly to match that amount in retirement, with inflation.

Physicians, who start their careers later than those in other professions, need a more sophisticated approach to maximize the potential of returns on their hard-earned money. Solely relying on just your 403(b) plan isn’t enough—401(k) and 457(b) included.

A physician lifestyle planner aims to know:

  • Are the elements of your financial plan presently coordinated?
  • Are they structured to maximize tax savings?
  • How do they affect your estate planning?
  • Do the products you hold serve multiple functions?
  • Are there additional moves we can make that are smarter, more efficient?                     

Explore Priorities and Take Control of Decisions

Physician lifestyle planning provides parameters to determine if expenses and other variables hinder your retirement savings or if they’re affordable. For instance, consider that you want to send your children to Ivy League schools in the next 18 years, or you want to support your parents, who are older with no assets.

The questions that need to be answered are: how much money will it take, where will that come from, and what’s the return on investments required to meet these goals?

Planning helps you take control over these decisions, showing you the numbers to help you see how, for example, to save for your children’s future college education, how much you’ll need to save for private schools now, and how those expenses will affect your overall retirement goal.

The ultimate benefits of planning are clarity and confidence. Working with expert planners gives you strategies that determine what lifestyle, savings or investment modifications could make your life better now and in retirement.

It lets you model any scenario with parameters, and know if taking care of some priorities does affect your personal goals, how does it affect you and what can you do to have the best of both worlds.

Protect Your Legacy

Beyond retirement, physician lifestyle planning can help you understand the legal perspectives of passing on wealth to future family generations or philanthropic organizations. Your situation may suggest that your plan includes trusts that protect your family, while also protecting their inheritance. Divorce, remarriage and the ages of your children are mitigating factors to consider, as well. Your wishes will be well-served when you’ve planned for the legal, tax and personal variables that will exist.

Achieve The Retirement You Want

Picturing and planning for your retirement are the best ways to achieve it. When you follow a strategy and can see the concrete numbers involved, you’ll know you’re making the best decisions for your family and your future—the one you’ve worked hard for and so richly deserve.

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Asset Allocation neither assures a profit nor protects against a loss in a declining market. Consult your own personal attorney legal or tax counsel for advice on specific legal and tax matters.

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