Attorneys are unique in the amount of training that goes into their professional, along with the level of stress that goes along with their profession. Attorneys are starting to see that they need to plan better now than they did before for retirement, says Denver Nowicz, who wrote "The Attorney's Guide to Wealth For Life."
Nowicz says that attorneys get hit hard with taxes and they shouldn't want to go into retirement with all of their income tax-deferred because when they go to retire and they take out some of that money, it's taxed as ordinary income for the rest of their life. He advises having two different buckets; a tax-deferred bucket and a tax-free bucket. What he sees now is too much money in tax-deferred buckets and not enough in tax-free buckets and he says that you want another source of income from which to pull out money.
For younger professionals, Nowicz says they're told to be aggressive and throw everything into the market. He suggests a more prudent approach in starting with a core of income and putting some money away where you can still get good growth but you have a floor in your wealth creation vehicles to protect you against the losses of the market. This way, he says, you are building a safety net and a guarantee that you will still get growth. Once that strong core of wealth is built, then more risks can be taken.
Denver Nowicz, a financial advisor in Scottsdale, Arizona, is the author of the e-book "Attorney's Guide to Wealth For Life." He spoke with The Legal Broadcast Network, providing online, on-demand, legal video news content.