Retirement should feel exciting, not unsettling. Yet for many physicians, the idea of stepping away from clinical work, a paycheck, and a familiar routine can feel overwhelming. After decades focused on patients, family, and saving, how do you make the transition with clarity and confidence?
These five steps provide a clear roadmap for a secure, predictable retirement.
- Build a Realistic Retirement Budget
Start by reviewing the income you have lived on over the past two years. Subtract savings/investment contributions, debt payments, and taxes, then remove expenses that will not continue in retirement. Be honest about the extras such as travel, home projects, gifts, and the larger purchases that always seem to arise.
A helpful approach is to practice living on your projected retirement spending level for a couple of years before you stop working. If it works during this trial period, it is likely to work during retirement.
- Eliminate Debt Before Your Retirement Date
The fewer payments you carry into retirement, the less your investment portfolio has to support. List every loan you have and create a timeline to pay each balance down. Watching your debt fall year after year builds both confidence and financial flexibility.
- Map Out Every Income Source
Know exactly when Social Security begins, how deferred compensation will be paid out, and which pension or annuity options fit your timeline. Coordinating these elements creates predictable income and provides tax planning opportunities that many people overlook.
- Align Your Investments to Support a Long Retirement
Your portfolio should balance growth, stability, and protection. Too much risk exposes you to painful losses. Too little risk leaves you vulnerable to inflation. Regular stress testing helps you understand how your portfolio might behave in different market conditions and reveals whether adjustments are needed before retirement begins.
- Test Your Plan with a Monte Carlo Simulation
A Monte Carlo analysis evaluates your retirement plan against thousands of potential market outcomes. Instead of guessing, you gain clarity about the likelihood that your strategy will support your lifestyle throughout retirement. The goal is not perfection. The goal is confidence.
You Do Not Have to Figure This Out Alone
Retirement is one of the most significant transitions you will ever make. These steps give you a strong foundation, but the details and how they fit together are equally important.
If you want to retire with clarity, control, and confidence, our team specializes in helping physicians create retirement plans that work in real life.
If you would like help building or reviewing your plan, please do not hesitate to contact us. A simple conversation may bring more clarity than months of trying to figure this out alone.
Contact
Visit ballastplan.com, Call 859.226.0625 or e-mail info@ballastplan.com.
About Ballast
Ballast, an employee-owned financial planning and investment management firm based in Lexington, KY, specializes in providing tailored services to high-income earners, high-net-worth clients, and individuals/businesses with complex financial situations. Our team of fiduciaries proactively anticipates and solves your needs by taking the time to understand your goals, passions, and what truly matters to you and your legacy. Ballast is built for financial security, by financial experts. You work hard every day. Let us take on some of the work for you.
Disclosure
Ballast, Inc. is a registered investment adviser with the SEC. Registration with the SEC does not indicate that the adviser has achieved a particular level of skill or ability, nor is it an endorsement by the SEC. All investment strategies have the potential for profit and loss. Ballast, Inc. is not engaged in the practice of law or accounting. Always consult an attorney or tax professional regarding your specific legal or tax situation. Any specific strategy or market/economic commentary may or may not be appropriate for your individual situation, may not have discussed all material implications of implementing said strategy, and may be reliant on data provided by outside resources. Prior to implementing any strategy or investment decision discussed in a Ballast commentary, please consult with the appropriate professionals to confirm thoroughness of the strategy presented and the appropriateness of said strategy for your individual situation.