As seen in Physician's Money Digest

Market Losses Impact Many Physicians
By Donald T. Cohen, CPA
Newman + Cohen Financial Management

It seemed like it would be so easy. Retire at age 55 or 60, and have more free time and the means to enjoy it. For many physician-investors, this dream vanished along with the billions in stock market gains hat were lost during the past 2 years.

Many doctors are scrambling to overhaul their retirement plans to ensure that they will have adequate savings for their golden years, while they come to the realization that they may not be able to rely on the stock market to bail them out. Following are 8 bits of financial advice for concerned physician-investors:

	Calculate how much money you will need to comfortably retire when you choose. This is not a difficult exercise, but it amazes me how many people have no idea how much they will need.
	Prepare to put more money aside than in the past or accept that you may have to wait longer to retire. The 20%+ annual growth of the US stock market in the 1990s was the impetus behind many investors spending more and saving less, especially for retirement. Put a sensible plan in place that will help you ensure a comfortable retirement. Use a nominal 7% annual return in calculating your investment savings goal.
	Don't disregard investments that may have been viewed as boring or too conservative in the past. Bonds and preferred stock, for example, represent quality, low-risk options for retirement savings. In addition, value stocks may lack the pizzazz of the high-flying tech stocks of recent years, but they are also worth considering.
	Just in case it helps to hear it once more - diversify. No more than 10% of your retirement investments should be in any single issue.
	Find out if you qualify to invest in a Roth IRA. Since the proceeds withdrawn from a Roth after retirement are not taxed, this vehicle is particularly attractive to physicians who retire at a high tax bracket due to their accumulated wealth.
	Take a close look at other tax-deferred investment options. Annuities and life-insurance policies are excellent alternatives for growing retirement savings in a tax-free environment while serving as estate planning tools.
	Take all necessary precautions to protect your retirement savings from claims or creditors. Laws vary from state to state, but certain types of investment vehicles are creditor-protected and are effective additions to most retirement plans.
	Last, but certainly not least, make sure to work with a knowledgeable group of financial advisors who have experience working with physicians and understand the best retirement planning options. The lessons most investors learned during the past 2 years make this more important than ever before.

Donald T. Cohen, founder and I director of Newman and Cohen Financial Management, has more than 20 years of experience in public accounting, advanced financial strategies, and business management for physicians and other high-net-worth individuals. For more information, visit www.newman-cohen.com