Look into the Best Financial Planning Options

 Look into the Best Financial Planning Options

If as a physician you start saving later, you will have to contribute more. Suppose you wait until you are 35 to start saving. Even if you double your contribution, or $ 200 a month, when you retire, you will have accumulated only half of the amount invested by someone who started saving at 25.

Are You the Lucky One

If you are one of the lucky ones who have a private pension plan, check what you will be entitled to after retirement. Make sure there is enough money from your plan to maintain your standard of living. Otherwise, plan for additional savings. Read your statement of rights carefully, it’s a wealth of information. For the financial planning for physicians this is important.

Don’t forget inflation. The increase in the consumer price index should be taken into account when doing your retirement financial planning. A liter of milk will cost more in 15 years. Most financial planning tools take this into account.

After setting up a savings strategy, consider increasing your contributions as your income increases. In general, half of your age is the percentage of your gross income that you should invest annually for retirement. Consult your financial advisor for advice on achieving your retirement income goals.

Reduced investment costs

There are fees to pay for investing, even if they don’t appear on your statements. For example, investment fund management fees may include commissions. Over time, these fees can erode your portfolio assets.

As a not-for-profit organization whose mandate is to help dentists, the CDSPI can offer you investment funds that do not include any commissions or current transaction fees. The CDSPI investment fund management fees are among the lowest on the market (varying between 0.65% and 1.77% per year depending on the fund chosen).

Not easy to navigate in financial planning for retirement. Here are the tips to help you plan for retirement:    

Don’t blindly save. Plan regularly or use a tool of your choice, especially if your income or retirement plans change.

If you are one of the lucky ones who have a private pension plan, check what you will be entitled to after retirement. Make sure there is enough money from your plan to maintain your standard of living. Otherwise, plan for additional savings. Read your statement of rights carefully, it’s a wealth of information.

Conclusion

Don’t forget inflation. The increase in the consumer price index should be taken into account when doing your retirement financial planning. A liter of milk will cost more in 15 years. Most financial planning tools take this into account.

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