Doctor's Economic Continuumsm

Graphs 1 & 2

A Doctor's Economic Continuumsm is a timeline beginning at Point A and ending at Point C. In this discussion, he/his is not intended as sexist, rather as a doctor of either gender.

Point A could represent several ideas.

  1. Today.
  2. Beginning of one's professional career.
  3. For our discussion, Point A represents the point in time when the Doctor earns $1 more than what he consumes.

Point C is death.

Point B is when the Doctor saves enough money to support his lifestyle without working for his life expectancy, and the life expectancy of the surviving spouse. We call it Critical Capital Masssm or CCM.

Graphs 3 & 4

The black line represents the estimated Savings Amount required for CCM at any age of the Doctor.

The green line represents the estimated increase in Savings for the Doctor over time, based upon various assumptions.

The intersection of the black line and the green line is the estimated point in time when the Doctor achieves CCM.

Graphs 5, 6 & 7

Your CFO Financial Advisorsm will discuss with you the nuances illustrated by these three charts. There are several ideas and issues implicit herein, including:

  1. A Doctor's Career Earnings are first divided between Lifestyle Expenses (including taxes) and Savings.
  2. Career Savings & Investments are a function of Principal, Return on Principal and Risk.
  3. At some Point, call it B', the Doctor will begin the spend down period during retirement, headed toward Point C.

 
Chart 1
Chart 1
Chart 1
Graph 1 Graph 2 Graph 3
 
Chart 1 Chart 1 Chart 1
Graph 4 Graph 5 Graph 6
 
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Graph 7    
   

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