Why Doctors Should Save Beyond Their Retirement Plans

Hope you didn't waste your time listening to the State of Dysfunction...I mean State of the Union address our beloved President delivered last night.
 
I didn't. But one thing did catch my attention when I read part of the transcript.
 
Here's what our clueless President said about retirement plans:
 
"And while the stock market has doubled over the last five years, that doesn’t help folks who don’t have 401ks."
 
At least he got part of that right.
 
It's true that the stock market has had huge gains over the past 5 years. It's actually more than doubled.
 
And if you are a physician who has been practicing medicine for more than 10 years, you should have enough wealth right now to cut down on your workload either by working less shifts, giving up shifts, cutting down on call, reducing your patient load, performing fewer surgeries, or doing less procedures.
 
If you don't, then you've either gotten poor returns, haven't saved enough, don't have a solid investment plan, hired the wrong financial advisor, failed at doing it yourself, or you've got a spending problem.
 
If you're a physician who has been practicing 20 years or more, then you should have built up enough wealth at this point to walk away if you want to and work on your terms.
 
Or don't work at all if you don't want to.
 
If you can't do that, then you've got some serious catching up to do my friend.
 
How do you do that?
 
Well, the President claims that if you don't invest in a 401k plan or have the option to do so, then you missed these big gains in the market.
 
Wrong!
 
There's nothing special about 401k plans. They are unrelated to the stock market. A 401k is simply an investment account. Just because you have a 401k doesn't mean you're guaranteed any sort of investment returns.
 
Plenty of physicians who have 401k plans have contacted me and complained about the lousy returns they've gotten either because they or their financial advisors mismanaged their accounts.
 
Or they weren't disciplined enough to stick with any sort of investment plan.
 
Or more commonly they don't have an investment plan to begin with.
 
Which brings me to my next point about the fallacy of the President's 401k remark.
 
As a physician, you need to be investing way beyond your 401k.
 
As physicians like you quickly convert to becoming wage laborers (corporate employees or government employees) and continue to lose your autonomy in medicine, you've got to ramp up your savings by not only maxing out your 401k but also investing in other accounts.
 
Yes, you can capture the returns of the stock market outside of your 401k unlike what the President says.
 
And if you can't save beyond your 401k, then you have no right to complain about your situation like so many doctors do.
 
I suggest you don't wait until the next State of the Union address to take action. By that time the avalanche of Obamacare may be in full effect.
 
Instead start now by letting me help you. Click here and let's go:
 
http://www.physicianwealthsolutions.com/second-opinion-consultation/
 
Making work optional for doctors,

Setu Mazumdar, MD, CFP®

"The Physician Financial Planner"