As a veterinarian, you are busy tending to the animal friends in your lives (personally and professionally) and may not always have the time to dive into personal finance. While the time it takes to understand your investing approach is substantial, there are ways to speed up your learning by focusing on a few key areas.
Veterinarians often graduate with significant student loan debt, which can pose the question of whether it is more beneficial to pay off those loans or invest in retirement. Developing a plan to manage and pay off your loans efficiently while also considering your retirement is essential. Depending on your loan’s interest rate, it may make sense to create a budget that prioritizes loan repayment while still allowing you to save and invest. Even small amounts of consistent investment can allow you to realize the power of compound interest.
If your employer offers a sponsored plan and matches a certain percentage of your contribution, you should do all that you can to take advantage of that match. Employer matches are essentially “free money,” which should never be turned down. Be aware that there are often vesting periods and other rules in these programs, so read your plan’s documents closely to better understand your options.
Owning a veterinary practice is a big decision and requires careful financial planning and business acumen. Seek advice from professionals like accountants and business consultants to understand the financial implications and responsibilities associated with practice ownership before taking the leap. In the same respect, selling your practice can create a financial windfall requiring careful consideration. This is a time when a financial advisor can be a critical asset.
When our animal friends get sick, we seek you, a veterinarian. When we have questions about investing in our retirement, we should seek a professional investment advisor. Allowing an advisor to hone your retirement approach not only invites their expertise but also gives you a “time credit” in that you relieve yourself of the worry, effort, and time that it takes to create a retirement portfolio. The sooner you find a trusted advisor, the better, and the sooner you will realize the time savings. Not all financial advisors are created equal, though, and I suggest finding an advisor who is a fiduciary on all of your accounts, all of the time, like those at One Day In July.
The One Day In July team is well-equipped to work with veterinarians as they plan for their retirement and financial future. With a wealth of knowledge, experience working with vets, fiduciary standards on all accounts, a transparent fee structure, and an equal love for our animal friends, One Day In July is an excellent partner in your financial future.
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