It may seem far away, but smart saving for retirement now will help you with financial security later. The AMA Resident and Fellow Section (RFS) hosted a special session on investing and retirement savings during the 2014 AMA Annual Meeting.
- Don’t skimp on disability insurance. Your most important asset is your ability to practice medicine. Protect this asset and invest in quality disability coverage in the event you are unable to practice, whether short or long-term.
- Choose the right way to invest. There are a lot of options, including a Roth IRA, a 401K, stocks and mutual funds. Investigate the differences and choose the investment method that works best for you. Watch a video that explains different investment methods for residents and their individual benefits and drawbacks.
- Pay yourself first. Before you pay any other bills each month, set aside some money to save. Put this money in an account that gains compound interest, and watch your investment grow. As a resident, you’re in a lower tax bracket now than you will be as an attending physician, meaning money is more valuable now than it is later. Maintain this value by investing it.
- Take advantage of matching programs. If the hospital where you work offers matching up to a certain dollar amount or percentage of income, take advantage of it—put as much savings in as possible to meet the maximum.
- Make a budget—and stick to it. Financially successful physicians create and adhere to a budget. Plan how much you will save each month, then budget for all loan repayments and bills before you spend on “fun” stuff.
Find more financial planning resources on the AMA Insurance resource center or its recommendations page.
