While $100,000 might not seem like much when compared to the gross salary of an emergency physician, with a dramatically reduced tax bill, without student loans, with no need to save for retirement or college, and with a paid-off mortgage, $100,000 may very well be enough to allow you to maintain your preretirement standard of living.
Explore This IssueACEP Now: Vol 36 – No 08 – August 2017
Even if you decide to have a more luxurious retirement than $100,000 of spending per year, you are still likely to have a dramatically lower tax bill in retirement. It might not be $0, but it will probably be closer to $0 than to what you are paying now. In fact, early retirees often deliberately increase their tax bill by doing Roth conversions of tax-deferred money in order to lower their overall lifetime tax burden, but that’s a subject for another column.