626 Financial tips and laws for today and tomorrow

Here are the best tips resident physicians can use to plan for their retirement.

Tip 1: Start investing sooner

• Prepare employer-sponsored retirement accounts like 403(b)/401(k) and even a Roth IRA (check if you’re eligible first) to diversify your tax strategy and increase total savings.

• Even if you save small amounts, remember to contribute regularly to fully take advantage of the long-term benefits of compound interest.

Tip 2: Target student loan repayment

• Prioritize paying off high-interest debts first and build your emergency fund.

• Use a strategy like refinancing or Income-Driven Repayment (IDR) to clear your debt.

Tip 3: Accept free money benefits

• If your hospital agrees to match your 401(k) contributions, add enough so that you get the full match. That can be around 3-6% of your salary.

• In case your employer’s retirement plan allows auto-escalation, set it up to increase your contribution rate per year.