ARGI Financial Group Helps Physicians Save More for Retirement

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Doctors can potentially supplement retirement savings using overfunded life insurance

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Life insurance is a unique asset class that not only provides potential tax advantages, but also doesn’t limit what a doctor can contribute like IRAs and 401(k)s.

ARGI Financial Group, an independent, fee-based financial planning company with over $820 million assets under management, announces today an initiative to educate physicians on their retirement income needs and offer solutions to help them save more.

On average, physicians may only replace half their annual income when they retire, well short of the 70 to 80 percent experts say they need,* according to a recent study by Fidelity Investments. Without supplementing their current retirement income plans, doctors risk running out of money sooner than needed or being forced to reduce their lifestyles after they hang up their stethoscopes.

ARGI Financial Group recognizes the distinct challenges doctors face trying to save enough for retirement. This new initiative will center on the use of overfunded life insurance policies that potentially build cash value. As long as they are funded and managed properly, certain types of life insurance can potentially provide a supplemental source of retirement income that has tax advantages and upside growth potential with no direct risk from market downturns.

“Life insurance is a unique asset class that not only provides potential tax advantages, but also doesn’t limit what a doctor can contribute like IRAs and 401(k)s,” said Joe Surrell, a financial planner and risk management specialist with ARGI Financial Group. “The right life insurance policy, when overfunded, can potentially provide tax-free account value growth, tax-free income in retirement and interest credits that will not decrease due to market returns.”

With more than 15 years of financial and insurance experience and numerous industry awards, including three-time Advisor of the Year with Financial Legacy Group, Surrell noticed a trend when reviewing clients’ overall financial picture: Doctors don’t have near enough for retirement. Furthermore, contribution limits on tax-advantaged retirement plans such as IRAs and 401(k)s make it nearly impossible for the average doctor to save enough for a comfortable retirement without exposing their assets to market risks and higher taxes.

As a result of his research, Surrell is leading this new initiative to make sure physicians are adequately prepared for retirement and have sufficient disability insurance. This ensures that doctors can maintain their lifestyle if an accident or illness forces them out of the medical profession.

About ARGI
ARGI Financial Group is an independent, fee-based financial planning company with over $820 million assets under management. ARGI's team of specialists strives to improve the lives of goal-focused professionals, businesses and families through proactive, objective and client-centered advice, financial planning and investment management. Among its many services, the company provides benefits assistance to the employees of companies like General Electric, Yum! Brands, Procter & Gamble, Western Kentucky University, and the Independent Pilots Association. ARGI Financial Group was founded in 1995 and employs 70 people at offices in Louisville and Bowling Green, Kentucky, Cincinnati, Ohio, Indianapolis, Indiana, and Grand Rapids, Michigan.

*Source: Physicians’ Savings Behaviors and Retirement Readiness, Fidelity Investments Points of View, Winter 2014 http://image.fidelityinvestments.com/lib/fe901570706c0c7b76/m/1/11278_Physician-Paper-Link.pdf

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Justin Scott
Scott Communications
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Joe Surrell