I grew up in a family were preparing for the future meant buying a lotto ticket and crossing our fingers.
It took a while for me to understand the importance of investing.
As a medical professional, you need to understand why you should invest so your future can be secure.
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Why Should Healthcare Workers Invest?
Medical professionals are often paid well enough that investing for the future is not a hardship. Putting money away for emergencies or long-term planning ensures you will be taken care of if you retire or can no longer work. It is a way to safeguard a future that is always uncertain.
⬇️⬇️⬇️Some Investing Options—–Keep scrolling below for the rest of the article.⬇️⬇️⬇️
- It has commission-free investing.
- A fractional share option with no hidden fees.
- You can borrow against your portfolio.
Open on M1 Finance’s secure website.
- A very modern approach to consider.
- The fee structure is very easy to understand.
- Good for investors who want to be on cruise control.
Open on Acorn’s secure website.
Why Investing is Important
Saving money for the future is necessary. Unfortunately, simply saving isn’t enough.
Inflation is unavoidable over time, which means you will need more money in the future than you can save now.
Investing your money allows it to grow while it is being saved.
Re-investing, which means putting the money you earn back into your investments, gives you even more growth thanks to compound interest.
What if I Don’t Invest?
Not investing your money is certainly an option but it is not a good one. The average salary of a healthcare worker is about $75,000 per year.
If you’re able to save 10 percent each year, which is what most experts recommend, you will have about $150,000 saved in 20 years.
That’s not bad, but should you need to retire early, that is only about two years of salary to live off of.
You will find yourself needing to supplement your income within a short amount of time.
Conversely, if you earn the average stock market return rate of 10 percent, over 20 years you would have well over $400,000. Choosing not to invest is, essentially, stealing from your future.
Related: Can Nurses Become Millionaires?
How to Get Started
Getting started with investing can be intimidating but it doesn’t have to be.
Your first step is to decide how much money you don’t need right now. You may have student loans you will want to consider as well as any other debt that needs to be managed.
You can pay off debts while investing, but that needs to be considered on a case-by-case basis. Once you have a dollar figure that you know you can invest, start with your retirement savings.
Employer-sponsored plans and IRAs are great tools for providing for your future.
You can then do some research into stocks, money markets and even real estate to make your portfolio more secure and well-rounded.
You could also consider talking with a financial planner who is trained in making these types of decisions.
Though investing is vital for your future, there isn’t just one way to save money going forward.
Make your plans, find your investment path and follow through!
What are your future investment plans? Do you prefer safe investments or something a bit riskier? Let us know in the comments!
Find a Finacial Planner!
Saving and investing for the future can be very difficult, not to mention complicated. If you don’t want to deal with it, you need to hire a financial advisor you can trust to help guide you on the journey.