As retirement planner for our bay area doctors and health professionals, I have learned many things in helping them maximize their wealth, minimize taxes and have access to funds when health threats occur.
The average working and earning years is between 40-70 yrs old. They seek retirement planning advice after 3 to 5 years working and earning their maximum potential and when they have young children. Their main monthly expenses are house rent/mortgage, car rental, credit cards and childcare/school expenses.
Their combined income as health care professionals and couples are between $250k to $600k per year, paying more than 30% in income taxes. Half of them are working in a hospital setting while half have their own private practice. The average retirement age is between 70-80 yrs old. They derive satisfaction in knowing that they have saved lives but the working condition is not their favorite thing.
They met their partners at medical school or at work. Long hours at work make them prone to sleeping at an average of 5-6 hrs per day.
They have an average of 1-2 children and have them when they are around 30-32 yrs old.
The following are retirement tips for doctors and health care professionals:
- Seek the support or help of retirement planners, life insurance agents, financial planners, realtors, mortgage brokers, lawyers and CPA. File income taxes as married filing separately.
- Condition your mind into a holistic approach to savings, money, value of money and tax-free wealth accumulation.
- Start saving early with a clear monthly budget agreed upon by both spouses. And treat yourselves when you stayed within your budget.
- Pay attention to high expense items such as house rent or mortgage, credit card expenses, child care and school, and other unaccounted expenses not budgeted for.
- Avail of any bonus, incentives, company pension plans, minimum contribution to a tax deferred retirement account and a tax free index strategy of retirement savings.
- Do not invest in stocks if long term, well diversified and low risk investments are the goals and to save fees. Avoid idle money such as 1%CD, term life policies, 2-4% annuities and retirement accounts that have market risk. Choose 13% annuities, Index Universal Life policies, tax-free retirement savings strategies and buy real estate at a low price with good exit strategies and positive cash flow. Email Connie for a sample cash flow analysis spreadsheet.
- Do not buy expensive cars without paying yourself first in the form of a conservative retirement savings account. Renting a car is better for some lifestyles.
- Increase your W2 deductions or set up a corporation to avail of tax deductions.
- Maintain a healthy lifestyle of whole foods, clean air and water and pamper yourself to a relaxation and spa to boost energy levels in a demanding work environment.
- Use an Index Universal Life Policy with living benefits added at no cost to access funds up to $1.5M when health threats occur such as cancer,stroke or disability. Call Connie Dello Buono CA Life Lic 0G60621 for all of the above support and retirement strategies at 408-854-1883 email@example.com 1708 Hallmark Lane San Jose, CA 95124 , helping families maximize wealth, minimize taxes and access to funds during health threats.
Email Connie for the following sample illustrations of tax free wealth accumulation and retirement strategies: