• SDN Site Updates

    Hey everyone! The site will be down for approximately 2 hours on Thursday, August 5th for site updates.

  • How To ACE Your Medical School Interview

    In this webinar hosted by SDN with experts from BeMo Academic Consulting, you will learn a simple five-step process to help you translate your interview invitation into an acceptance.

eleanor_rigby

Member
10+ Year Member
5+ Year Member
Mar 23, 2006
175
0
Status (Visible)
  1. Pre-Health (Field Undecided)
Approximately what percentage of your income do you put into investments? Most of the pharmacists I've spoken with have given me a range from 30-40%. Do you pay some finance guru to crunch the numbers and make decisions for you if you're investing in stocks, mutual funds, etc.?
 

pharmaz88

Full Member
10+ Year Member
15+ Year Member
Nov 9, 2003
317
0
Status (Visible)
I can't speak to what % of income RPh's funnel into investments, but having seen enough financially-naive recent pharm grads get taken advantage of by a local 'financial advisor', I offer two bits of advice:

1. Take the time to learn how to invest on your own. You REALLY do NOT need a financial advisor. However, if you insist on using one, make sure that he/she is fee-based, and not commission-based! Sure, $150/hr may seem like a rip-off for someone's advice, but that's better than 'free' financial advice where you're getting pushed into less-than-optimal investment vehicles, just so your advisor can make a fat commission off of you.

2. Run away from anyone trying to sell you on variable annuities or any type of investment wrapped in life-insurance. They'll make them sound like great deals, but the couple of percentage points you give up yearly in fees will translate to being tens to hundreds of thousands of dollars behind when you retire. ...save the annuities for when you're old and gray and are looking for a constant source of income.
 

All4MyDaughter

SDN Mommystrator
Moderator Emeritus
10+ Year Member
May 7, 2005
22,791
344
Ivory Tower
Status (Visible)
  1. Pharmacist
I can't speak to what % of income RPh's funnel into investments, but having seen enough financially-naive recent pharm grads get taken advantage of by a local 'financial advisor', I offer two bits of advice:

1. Take the time to learn how to invest on your own. You REALLY do NOT need a financial advisor. However, if you insist on using one, make sure that he/she is fee-based, and not commission-based! Sure, $150/hr may seem like a rip-off for someone's advice, but that's better than 'free' financial advice where you're getting pushed into less-than-optimal investment vehicles, just so your advisor can make a fat commission off of you.

2. Run away from anyone trying to sell you on variable annuities or any type of investment wrapped in life-insurance. They'll make them sound like great deals, but the couple of percentage points you give up yearly in fees will translate to being tens to hundreds of thousands of dollars behind when you retire. ...save the annuities for when you're old and gray and are looking for a constant source of income.



Good advice.

Life insurance is not an investment. It's just insurance. All anyone needs is term life insurance and the amount needed is variable. We have a lot because we have a young child who would need years of care if anything were to happen to us. We buy group term through my husband's work and it is cheap.

We have my husband's 401-K, my retirement account from my old career (not contributing to it currently) and a Roth IRA. We also have and Educational Savings Account for our daughter. Any cash gifts we receive for her go into that.
 
About the Ads

dr of rx

Voicemail Suks
10+ Year Member
7+ Year Member
Jun 15, 2006
106
0
Status (Visible)
  1. Pharmacist
I was taught 20% of your pre-tax income is the number to shoot for. Invest heavily while you are young.
 

Farmercyst

From the shadows
Moderator Emeritus
10+ Year Member
Sep 21, 2006
7,864
6
The bottom of a pile of debt.
Status (Visible)
  1. Pharmacist
Not a pharmacist (yet), but I do the 6% 401K that my employer has a 50% match on. I don't have spare money to funnel into investments from my salary, but I invested the proceeds from the sale of my condo and without a financial advisor have made 22% in the last 6 months. I'm not saying I'm a saavy investor. It's been a lot of study and a little bit of luck. But ditto on not needing a financial advisor. Once I get out, depending on how much I have to take out in loans, I'm hoping to invest 25-30%, plus any 401k that gets matched.
 
A

arkanaspharmacy

I am in a personal finance course at UAMS pharmacy school. The two best books my prof recommends is:
1. The Automatic Millionaire by David Bach
2. The Everything Personal Finance in Your 20s & 30s Book by Debby Fowles

I just finished the complete financial guide for couples by Larry Burkett. I feel very wise after reading it b/c I learned so much from things like interest to very unwise investments. He also has several other books of which I own three of them. I use a personal financial consultant through Morgan Stanley. She has helped me to double my portfolio in 8 years. There is some benefit to paying for the advice. I just pay it through commission fees.
 
About the Ads
This thread is more than 14 years old.

Your message may be considered spam for the following reasons:

  1. Your new thread title is very short, and likely is unhelpful.
  2. Your reply is very short and likely does not add anything to the thread.
  3. Your reply is very long and likely does not add anything to the thread.
  4. It is very likely that it does not need any further discussion and thus bumping it serves no purpose.
  5. Your message is mostly quotes or spoilers.
  6. Your reply has occurred very quickly after a previous reply and likely does not add anything to the thread.
  7. This thread is locked.