Page 39 - Delaware Medical Journal - May/June 2019
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PRACTICE MANAGEMENT
your savings in stocks. With a mix of 80% stocks and 20% bonds, your rewards will be similar, but your risk is lower, says Rudzinski. “Physicians need to diversify their portfolio, just like anyone else.”
Don’t leave a match on the table. If you are an employed physician, make sure you know when your employer’s match kicks in and contribute at least enough to trigger that match, says Rudzinski.
Automate your savings. Start with
the largest savings amount you can
possibly afford and make sure it deducts automatically. This will make it less likely that you back down from your retirement savings when other big expenses come up, says Rudzinski. At the same time, you’ll need to make sure you keep increasing your deductions as your income grows, he adds.
Set up a separate 529 plan to save for your kids’ educational expenses,
so you’re not dipping into your retirement savings to cover them, Rudzinski recommends. Note that these plans can now be used for K-12 expenses, not just college, he adds. (However, there is a limit
Put some money into tax-free options. tax-deferred, meaning you will still owe taxes on your savings once you withdraw them from the plan, notes Rudzinski. So consider setting some of your savings aside for tax-free vehicles, such as municipal bonds or a life insurance policy. “If physicians take the money out the right way, the distributions from life insurance are tax free, so you can use tax-free distributions from the insurance as a retirement vehicle,” he says.
For self-employed physicians: Consider a safe harbor 401(k). Generally, the IRS limits your contributions to a 401(k) to no more than 2% above what employees contribute on average. “A safe harbor plan allows the doctor to put in the maximum amount he or she wants to,” regardless of employees’ contributions, says Rudzinski.
*Hypothetical rate for illustrative purposes only. Performance is not indicative of actual returns and does not take distributions, taxes or fees associated with investing into account. These would significantly increase the amount required to reach your goal. These values assume that the currently illustrated non-guaranteed elements will continue unchanged for all years shown. This is not likely to occur and actual results may be more or less favorable than those shown.
Provided by Diamond State Financial Group
Table 1 - Getting to $1 Million: The High Cost of Waiting
Monthly investment needed to accumulate $1 million (at 8% compounded rate of return*)
Monthly Investment
Number of Years
$286
40
$670
30
$1,694
20
$5,466
10
Del Med J | May/June 2019 | Vol. 91 | No. 3
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The Medical Society of Delaware Retirement Savings Plan
MSD partners with Diamond State Financial Group to offer a low-cost, comprehensive MassMutual retirement plan for physician employers.
Joining the MSD plan is a great way to lower costs and reduce fiduciary
risk for both solo and group practices, says Christopher Burgos, CFP®, ChFC®, CFS®, AIF®, a Managing Partner at Diamond State Financial Group in Newark.
The plan also covers costs that practices would usually be obliged to take on, such as annual audits, Form 5500 preparation and filing, and non- discrimination testing.
Another advantage: While the MassMutual arrangement pools multiple physician members to lower costs, each practice’s plan is still separate, so you are not bound by another practice’s match arrangement.
For more information about the plan, email christopher.burgos@dsfg.com or hardik.shah@dsfg. com.
Disclaimer: Christopher Burgos and Hardik Shah are
registered representatives and investment advisors of Securian Financial Services, Inc. Securities and investment advisory services offered through Securian Financial Services,
Inc. Member FINRA/SIPC. Diamond State Financial
Group is independently owned and operated. 121
Continental Dr., Ste. 110, Newark, DE 19713.
2392707 01.2019
Christopher Burgos, Hardik Shah, Diamond State Financial Group, and Securian Financial Services, Inc. are not affiliated with Kenneth Rudzinski or Tina Irgang Leaderman.
