Medical and dental students seeking financial education have an opportunity to enhance their knowledge through the WCI Money Masterclass, scheduled for February 19 at 6 PM MT. Led by WCI founder Dr. Jim Dahle and StudentLoanAdvice.com co-founder Andrew Paulson, this free class aims to equip participants with the tools needed for financial success. Topics will include effective management of student loans and considerations for purchasing a home during residency. Registration is open for this potentially transformative event.
In a related discussion on financial literacy, neurologist Dr. Rikki Racela highlights the importance of understanding retirement plans, particularly the 457(b) retirement accounts offered by employers. His wife, now working reduced hours at Northwell Health, recently faced the decision of whether to contribute to a non-governmental 457 plan. This retirement vehicle allows employees to defer compensation, but it carries some risks, primarily concerning employer stability and bankruptcy.
After researching Northwell’s credit ratings, which stand above the acceptable investment-grade threshold, Racela and his wife decided to contribute to the 457 plan. They emphasized the significance of distribution options and low-cost investment alternatives, particularly as high fees can significantly diminish returns over time.
While the couple expressed a degree of caution regarding the non-governmental nature of the 457 plan—given that contributions could be at risk in the event of bankruptcy—they felt reassured by Northwell’s financial track record. Ultimately, they resolved to maximize their contributions to the 457 plan, reflecting their commitment to informed financial planning.
Why this story matters:
- Financial education can significantly impact medical and dental students’ future security.
Key takeaway:
- Understanding retirement plan options and making informed contributions is essential for long-term wealth accumulation.
Opposing viewpoint:
- Concerns remain regarding the potential risks of non-governmental retirement accounts amid employer financial instability.
