41% of all doctors have less than $500,000 in savings

You would think that the majority of doctors are financially well off, but in fact, they are not. According to the AMA 2013 Physician Financial Preparedness Survey, only 41% of all physicians average less than $500,000 in retirement savings. In fact, of the physicians surveyed, the majority (56%) of those under age 40 had an average retirement savings under $100,000! That is disturbing. In comparison, Whitecoatinvestor had a net worth that exceeded $1,000,000 before he reached age 40!

Given that the average doctor should earn more than $100,000 annually, it is natural to assume that she would have more than that amount after a decade of working (assuming starting at age 30). The fact that there still is such a discrepancy become income, net worth, and retirement savings signifies that doctors are not probably not saving enough for retirement. Actually, the top financial concern of all physicians was whether they had enough to retire.

In actuality, financial stability is achievable for all physicians—you don’t even have to spend every waking second of your time managing your finances. BUT, you do have to pay attention to your expenses and allocate your earnings appropriately.

 

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