Hi, this is Dave Kats with Therapist Consultants, and I have a tip for you.
When we think about retirement, therapists that are in private practice have to be extra careful. Because if you were working for an agency, you would probably participate in some kind of 401K or 403B, or some type of retirement program, tax-deferred retirement program, but right now, when you're in practice by yourself, you don't have that. Now, that creates a double whammy at the end of your practice career, and here's why.
Because right now, as a private practitioner, you're probably making more than if you were working for an agency. So you're used to living on a little bit more than the person working for the agency. When the people in the agency are working, they're putting money on a 401K. Now, when they retire, they'll have money on a 401K, so their income will stay up. You, by the same token, have had a higher income, but your income will go down if you're not involved in some kind of tax-deferred savings program.
Right now before you get too far down the road in private practice, I would suggest that you set up some tax-deferred savings program that you will have available for you in retirement, so you enjoy both a lot of income right now in private practice and a good income in retirement, living on your 401K or other retirement programs.
This is Dave Kats. Thanks for listening.
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