Retirement Planning is always a complex process, but it presents some unique challenges for doctors and dentists. Although many of the basic principles remain the same for retirees from any industry, doctors and dentists often start saving later in life because of lengthy educational requirements, and they also tend to have significant student loan debt. These factors mean you’ll need to take special care in your financial planning so that you can enjoy the life you want for yourself while you’re still working, as well as set yourself up for the retirement of your dreams.
Here are four tips that help ensure doctors and dentists properly plan for retirement:
Tip #1: Pay Your Student Loans Strategically
Once you begin practicing and start earning real money, it’s tempting to throw extra payments at your student loan debt in order to dispense with it as quickly as possible. After all, it can often feel like an albatross around your neck. Before you start down this path, however, it’s important to step back and determine whether other strategies might be more financially savvy. For instance, you might qualify for a refinancing offer that lowers your interest rate, or maybe public service work qualifies you for loan forgiveness. These are important details to consider before you start paying more than your monthly loan payment.