Posted by Amy Carbone on Jul 13, 2022 9:00:00 AM
Retirement planning is a crucial part of your comprehensive financial plan. The earlier in your career you start preparing for it, the more you can save, which makes it easier to transition into retirement when the time comes.
Here are 3 reasons why you should start planning for retirement today:
1. Time Value of Money
The time value of money states that your money is worth more now than it will be in the future — making it crucial to invest your money now, so it has the ability to grow. The earlier you begin contributing to a retirement account, the more significant your earnings may be.
Throughout your career, making consistent contributions to your retirement account may allow the return to have more time to accumulate. This may allow your compounding return on investment to grow more efficiently, as principal grows in addition to the percentage return you're earning.
2. Waiting Can Cost You
Even if you can't invest a lot of money at the beginning, the biggest step is to just get started.
When you wait, you potentially cost yourself a large sum of money by not saving or receiving compounding return on your investment. By planning for retirement at an early age, you're able to invest throughout your entire career to help create a secure future for yourself.
3. Your Investments Become Habitual
By contributing to a retirement fund early in your career, it becomes natural for you to put a certain amount of your income away for retirement. Another way to ensure this habit becomes a part of your financial future is to begin utilizing automatic transfers into your savings or retirement accounts.
Establishing a planned, systematic savings plan early on may help avoid the scenario in which a dentist approaching retirement realizes that they are not saving enough for retirement. The dentist may be faced with having to lower their current standard of living in order to increase their retirement savings to a more appropriate level. If this realization is discovered too late in their career, it may not be possible to save the appropriate amount and significant adjustments may need to be made to their retirement income expectations.
As your practice grows, your income will typically increase. Care should be taken to make certain that your lifestyle changes do not outpace your income increases. Continuing your planned retirement savings and possibly increasing the amount should allow you to enjoy the fruits of your labor while building for retirement.
We’re Here To Help
Whether you’re ready to start saving for retirement or interested in insurance to protect your practice, Treloar & Heisel can help.
Whether you’re in training, in practice, or near retirement, we have more than 50 years of experience helping dental and medical professionals to find the right coverage for you and your practice. Contact us today to plan and protect the future of your career!
About Treloar & Heisel
Treloar & Heisel, an EPIC company, is a financial services provider to dental and medical professionals across the country. Our insurance and wealth management divisions assist thousands of clients from residency through retirement. We strive to deliver the highest level of service with custom-tailored advice and a strong national network.