Doctors and dentists typically have long careers, but doctors in particular start working later than most people, and as result also start building wealth later in life.
This can lead to a situation where insufficient wealth is accumulated early in life, missing out on valuable compounding benefits, which makes it harder to accumulate sufficient retirement savings.
A possible solution for medical professionals to overcome this would be to work longer and retire later. Many resort to this strategy out of necessity.
However, research from Morningstar in the US indicates that most people end up retiring sooner than they thought, for various reasons (health, family, etc.). As a result, it would be very risky for medical professionals to rely on the longevity of their career.
It begs the question, should doctors and dentists start saving and investing as soon as possible?
I certainly think so.
Experience also tells me that people in general are much more motivated to see their money grow as opposed to seeing their debt reduce. And so it makes sense to put in place some of these strategies (contributing to super, regular investment plans) as part of your cash flow management structure.
If you would like to find out more how we help our clients manage their cash flow, and what wealth creation strategies we recommend for medical professionals, please contact me on Yves@affluenceprivate.com.au