Basic Investing: Your Advantage as a Resident Physician
One of the maxims of investing and saving is that the sooner you start, the better your eventual returns will be. This holds true regardless of your occupation. As a resident physician, however, your entire career is ahead of you and you will likely be a high income individual. The combination of those advantages and dedication to investing wisely can turn saving for the future into a relatively simple process.
The stock market is just one way of investing, but focusing on it can provide a great example. Looking at the overall performance of stocks in about the past 200 years, the compounded annual rate of return is about 10.2 percent. Obviously there are short-term ups and downs, but by investing early in your career, you can take advantage of the long-term benefits that the stock market yields. An annual return rate of 10.2 percent will double an initial investment in about seven years. It doesn’t take a math wiz to deduce that consistently investing over an extended period of time should produce impressive returns.
Some of the most difficult choices are where and how to invest. There are hundreds of investing theories and strategies and just as many firms and companies that offer their advice and services. Charles Schwab, Merrill Lynch, JP Morgan, Fidelity, and Vanguard are just a sampling of the hundreds of reputable companies that you can invest with. If you want to invest on your own, online brokerages such as E*TRADE or TD Ameritrade are also viable options.
I mentioned in a previous post that when purchasing disability insurance, working with a company that specializes in offering that product specifically for physicians is ideal. The same is true when searching for a financial advisor. It may not be a necessity to find a financial advisor that specializes in advising physicians, but working with a niche expert has its benefits.
Investing is still a complex process, but as a resident physician you have the time and resources to be successful. To make the most out of your savings, do your homework or find an advisor you trust and start investing today.
The stock market is just one way of investing, but focusing on it can provide a great example. Looking at the overall performance of stocks in about the past 200 years, the compounded annual rate of return is about 10.2 percent. Obviously there are short-term ups and downs, but by investing early in your career, you can take advantage of the long-term benefits that the stock market yields. An annual return rate of 10.2 percent will double an initial investment in about seven years. It doesn’t take a math wiz to deduce that consistently investing over an extended period of time should produce impressive returns.
Some of the most difficult choices are where and how to invest. There are hundreds of investing theories and strategies and just as many firms and companies that offer their advice and services. Charles Schwab, Merrill Lynch, JP Morgan, Fidelity, and Vanguard are just a sampling of the hundreds of reputable companies that you can invest with. If you want to invest on your own, online brokerages such as E*TRADE or TD Ameritrade are also viable options.
I mentioned in a previous post that when purchasing disability insurance, working with a company that specializes in offering that product specifically for physicians is ideal. The same is true when searching for a financial advisor. It may not be a necessity to find a financial advisor that specializes in advising physicians, but working with a niche expert has its benefits.
Investing is still a complex process, but as a resident physician you have the time and resources to be successful. To make the most out of your savings, do your homework or find an advisor you trust and start investing today.
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