One reason medical professionals should take more risk in their portfolios, versus being in a different field outside of medical, is that the medical field is recession proof and a low risk that they will be out of a job. Other fields like sales, hospitality, industrial, corporate or big conglomerate companies can be subject to layoffs or furlough.
When you know that you will be making a minimum of “x” per month, you should be willing to invest “y” per month at an aggressive rate. Whether it is for a retirement (obviously this account will be the most aggressive) or for the shorter-term (obviously this account you may not want as risky). I have seen too often where nurses take advice from their parents on how to invest their money. The way your parents are investing, and the way you are investing, should be completely different!
Most people when they get to retirement don’t say “Man, I wish I saved less” or “I really wish I was in bonds my whole working career”. That just doesn’t happen.
What does happen is people do not understand what they are invested in, pick a target date fund and assume things will work out fine. And they might, but they might not.
Your future self will thank you for taking the time to “invest” in the investments you are partaking in.
In finance they call this the “risk premium”. You should be rewarded with higher returns, for taking more risk.
Stay invested my friends!
Medical professionals should take more risk with their investment portfolios
One reason medical professionals should take more risk in their portfolios, versus being in a different field outside of medical, is that the medical field is recession proof and a low risk that they will be out of a job. Other fields like sales, hospitality, industrial, corporate or big conglomerate companies can be subject to layoffs or furlough.
When you know that you will be making a minimum of “x” per month, you should be willing to invest “y” per month at an aggressive rate. Whether it is for a retirement (obviously this account will be the most aggressive) or for the shorter-term (obviously this account you may not want as risky). I have seen too often where nurses take advice from their parents on how to invest their money. The way your parents are investing, and the way you are investing, should be completely different!
Most people when they get to retirement don’t say “Man, I wish I saved less” or “I really wish I was in bonds my whole working career”. That just doesn’t happen.
What does happen is people do not understand what they are invested in, pick a target date fund and assume things will work out fine. And they might, but they might not.
Your future self will thank you for taking the time to “invest” in the investments you are partaking in.
In finance they call this the “risk premium”. You should be rewarded with higher returns, for taking more risk.
