How to build true wealth: Why retirement planning goes beyond just money

Wealth building and saving for retirement are crucial aspects of financial planning for physicians. While doctors often earn a high income, their financial success depends on more than just their salary. Effective wealth building can ensure financial independence, reduce stress, and provide a sense of security in retirement. There’s also more to retirement planning than just money—and that’s where the concept of “true wealth” comes into play.

Physicians face unique financial challenges, including high student debt, long hours, and a delayed entry into their earning years. However, the earlier they begin saving and investing, the more they can take advantage of compound growth over time.

One of the keys to successful wealth building is diversification. Physicians should invest in a mix of assets, including stocks, bonds, and real estate, to spread risk and take advantage of different growth opportunities. Working with a financial advisor who understands the unique needs of medical professionals can help doctors make informed decisions about their investment strategy.

Additionally, it's important for doctors to focus on both short- and long-term goals. In the short term, paying down student loans, building an emergency fund, and managing day-to-day expenses are essential steps. Long-term wealth building involves making smart decisions about retirement savings, tax planning, and asset accumulation.

Planning for retirement is also critical. Many physicians want to retire early or reduce their hours later in life, so it’s important to have a clear plan in place. This includes setting aside sufficient funds to replace income in retirement and considering health care costs, which can be significant. True wealth is more than just money—it’s about enjoying life. With a stressful job, this is vital for physicians to understand.

Medical Economics spoke with Bryan Jepson, MD, CFP, about what true wealth looks like and how to make physicians can make it part of their retirement plan.