Home  Library   Business & Financial Planning  Investment Strategies to Meet Retirement Goals

Investment Strategies to Meet Retirement Goals

By: Gavin Shea

It's critical to begin your financial planning and investment strategies early enough in your career to have a meaningful impact on meeting your retirement goals. Even if you can only save a small amount while you are building your practice, making a plan to systematically invest in your retirement helps ensure you do not lose valuable time that can ultimately make a significant difference in the amount of your retirement income.

Here are a number of issues you will need to consider, no matter where you are in the retirement planning process:

Tax implications.

Once you start accumulating assets for your retirement, you will be challenged to efficiently manage your investments from a tax perspective*. For example, how can you maximize retirement income while minimizing the amount that’s due to the federal government? How do you protect your investments from capital gains taxes when transitioning your assets to family members and heirs? Taxes affect all aspects of your financial life, including your investments, real estate acquisitions, equipment purchases, and overall income, and using tax law to your benefit is crucial not only for a successful retirement, but throughout your career. Talk to your financial and tax advisor about how to use the law to build and protect your retirement funds.

Insurance requirements.

One of the quickest ways to deplete your retirement income is to be underinsured for the unexpected. Will you have sufficient funds should you face a major illness or disability? Will your retirement income cover your needs throughout an exceptionally long life? Make sure you are adequately covered with the proper type and amount of health, life and disability insurance to ensure you, and your hard-earned assets, are protected throughout your retirement.

Estate planning.

It's surprising how many of us seem to cruise through life with no plan for managing our estate as we wind down our business and career. The truth is, it's never too soon to think about how to utilize and disperse your business, home, and other investments and acquisitions when it comes time to retire. Can your retirement plan be funded through the sale of your business? Does it make sense to take a business equity loan to upgrade your practice prior to retirement? All of these issues need to be considered well in advance of retirement in order to fully meet your income goals. Speak with your financial planner or attorney about creating a long-term plan for putting your assets to work for you when it comes time to retire.

Once you've established a financial goal, you have several options for amassing the assets needed for retirement. Retirement plans - like Simplified Employee Pension IRAs (SEP IRAs) and small business 401(k)s - not only enable you to accumulate wealth separate from the assets of your business, but also offer tax benefits*. Other tools, such as non-qualified retirement plans, can help you retain key employees during a transition period, as well as build retirement funds. Deferred compensation arrangements, which allow a business owner or key employee to receive compensation in the future and defer taxes, often are funded with insurance benefits.

Maximizing income, determining withdrawal rates and factoring inflation all come into play when developing an investment plan for retirement. Strategies will have to be developed to address inherent risks in fluctuating interest rates, markets, business laws, tax laws, employment and public policies. Because these are complex issues that can evolve over time, it is critical to employ the services of a professional financial and tax advisor to understand how best to build, utilize and protect your retirement assets.

*Wells Fargo Practice Finance does not provide tax advice. Please see your tax advisor to determine how this information may apply to your own situation.

About the Author

Gavin Shea is the National Director, Healthcare for Wells Fargo Practice Finance. With more than 17 years of banking experience with an emphasis in practice lending, he leads sales and marketing strategy development and implementation throughout the national footprint. His industry background offers practitioners a unique perspective as they approach some of the most important decisions in their professional lives. With more than 30 years of healthcare experience, Wells Fargo Practice Finance specializes in helping healthcare professionals acquire, start and expand their practices with various financing options and a signature Practice Success Program. Contact: gavin.m.shea@wellsfargo.com or 844-626-4317

View all articles by Gavin Shea


Want more strategies for practice success?

The best way for us to meet your needs is to hear about them directly from you. If there's a business, financial or practice-related topic you're interested in, let us know. We'll do our research and get back to you.

The articles and materials on the Wells Fargo Practice Finance website are provided for general information only and do not constitute, nor are they intended as, a substitute for consultation with accounting, tax, legal or other professional advisors. Wells Fargo makes no representation regarding the articles available in the Strategies for Success Library or the completeness or accuracy of the information contained therein. The articles and the information contained therein may be incomplete, may contain errors or may have become out of date. Wells Fargo makes no commitment, and disclaims any duty, to update any of the articles or materials in the Strategies for Success Library.

The views expressed in the articles are those of the authors alone. They may or may not reflect the views or opinions of Wells Fargo.

Wells Fargo Practice Finance is the only practice and commercial real estate lender recommended for members of the American Dental Association.

ADA® is a registered trademark of the American Dental Association. ADA Member Advantage is a service mark of the American Dental Association. ADA Member Advantage is a program brought to you by ADA Business Enterprises, Inc., a wholly owned subsidiary of the American Dental Association.

All financing is subject to credit approval.

Wells Fargo Practice Finance is the only practice and commercial real estate lender recommended for members of the American Dental Association.

All financing is subject to credit approval.

Wells Fargo Practice Finance is the only practice and commercial real estate lender recommended for members of the American Dental Association.

All financing is subject to credit approval.

Wells Fargo Practice Finance is the only practice and commercial real estate lender recommended for members of the American Dental Association.

All financing is subject to credit approval.

Wells Fargo Practice Finance is the only practice and commercial real estate lender recommended for members of the American Dental Association.

All financing is subject to credit approval.

Wells Fargo Practice Finance is the only practice and commercial real estate lender recommended for members of the American Dental Association.

All financing is subject to credit approval.

Wells Fargo Practice Finance is the only practice and commercial real estate lender recommended for members of the American Dental Association.

All financing is subject to credit approval.

Wells Fargo Practice Finance is the only practice and commercial real estate lender recommended for members of the American Dental Association.

All financing is subject to credit approval.

Wells Fargo Practice Finance is the only practice and commercial real estate lender recommended for members of the American Dental Association.

All financing is subject to credit approval.

Wells Fargo Practice Finance is the only practice and commercial real estate lender recommended for members of the American Dental Association.

ADA® is a registered trademark of the American Dental Association. ADA Member Advantage is a service mark of the American Dental Association. ADA Member Advantage is a program brought to you by ADA Business Enterprises, Inc., a wholly owned subsidiary of the American Dental Association.

All financing is subject to credit approval.

Wells Fargo Stagecoach Logo