Biography
Biography: Justin D Nabity
Abstract
Financial preparedness is not just about investing in the right funds; it’s about finding the right job and negotiating well. It’s about tackling debt aggressively, including student loans, while not neglecting retirement planning. For residents and fellows, it’s about creatively and purposefully putting a limited pay-check to work instead of waiting until finally finishing training. It’s also about being prepared for job interviews and protecting a physician’s potential with the right coverage. According to the 2015 MGMA Compensation Report, the median annual earning potential of a dermatologist is *$350,000. This earning potential illustrates the compelling reason why when planning for retirement; proper diversification goes far beyond having an investment allocation spread out among various asset classes. A truly diversified investment strategy also takes into consideration the impact of taxes both today and when retirement is reached. A diversified investment strategy provides physicians the ability to minimize tax liability in order to optimize the tax efficiency of their portfolio both today and in retirement years. Traditionally, individuals rely solely on their 401(k), IRAs or other tax-deferred vehicles for savings. However, this one-dimensional savings strategy provides little to no flexibility when an individual reaches retirement. Diversification involves spreading investments among tax-deferred, tax-favored and taxable accounts during a physician’s working years so they can plan to optimize their tax situation in retirement. Whether discussing contract negotiation, interviewing, debt management or retirement planning, the remedy to this concerning statistic is to universally “Plan for the End in the Beginning.”