Pension or 403b: Which should I choose ?

Physician Family Financial Advisors Podcast; Personal Finance for Doctors with Children

In this episode, Nate and Ben discuss the crucial financial decision physicians face when choosing between pension plans and 403(b) retirement plans. They explain the nuances of each option, emphasizing the impact these choices can have on long-term financial stability. The discussion addresses common concerns about retirement savings, tax implications, and the importance of financial planning as part of a comprehensive strategy for family well-being. By focusing on personal goals and open communication, the hosts guide listeners to make informed decisions that align with their unique circumstances.

Key Highlights:

1.Understanding Retirement Options:

- The hosts explain the fundamental differences between pension plans and 403(b) plans, including how pensions often provide lifelong income but typically do not extend benefits to heirs.

- They discuss how one's longevity with an employer can significantly affect the value of a pension, making it crucial to consider personal career plans in the decision-making process.

2.Financial Planning for Families:

- The importance of establishing a financial plan that aligns with life goals is emphasized, highlighting how various factors—including age and family dynamics—play a role in shaping retirement strategies.

- Listeners are encouraged to revisit their financial goals periodically, ensuring they stay aligned with any changes in personal circumstances or family needs.

3.The Importance of Communication:

- Nate shares insights on the role that candid discussions play in effective financial planning, particularly within families. Understanding each family member's perspective can lead to more cohesive decision-making.

- They suggest considering potential contributions from extended family members, such as grandparents, which may impact college funding and other financial goals.

4.Nuanced Financial Advice:

- The hosts talk about the prevalent one-size-fits-all approach often seen in financial planning, advocating for a more tailored strategy that considers individual needs and goals.

- Listeners are encouraged to seek second opinions when faced with major financial decisions, which can provide clarity and confidence in their choices.

5. Navigating Additional Benefits:

- They discuss additional benefits attached to each retirement plan, including employer matches in 403(b) plans and the implications of opting out of those benefits when choosing a pension.

- The conversation highlights the importance of understanding the complete benefits package that comes with employment, as it can significantly influence overall compensation and retirement readiness.

Actionable Advice:

- Get Personalized Financial Advice:

For tailored financial guidance that suits your needs, visit www.physicianfamily.com to connect with a professional advisor.

- Have a Question?

Send your questions to [e-mail] or call 503-308-8733, and your query might be featured in a future episode!

Resources Mentioned:

- The Overtaxed Doctor's Retirement Investing Checklist:

Are you getting all the tax breaks you deserve? Download your checklist here to ensure you’re maximizing your opportunities.

Disclaimer:

Physician Family Financial Advisors Inc., a registered investment advisor, has reasonable belief that the information and content as a whole does not include any false or materially misleading statements or omissions of facts regarding services, investments, or client experience. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Information expressed does not take into account the specific situation or objectives of individuals and is not intended as recommendations appropriate for all individuals. Listeners are encouraged to seek advice from a qualified tax, legal, or investment adviser to determine whether any information presented may be suitable for their specific situation. Past performance is not indicative of future performance.