So, you want to be a traveler and make the ‘Big Bucks’? The first thing to realize is that Travel Nursing isn’t the ‘cash cow’ that many think it is! Read about some of the other Travel Nursing Myths you should be aware of.
Have a clear vision of the realities
Travel nursing can be an amazing lifestyle and experience but it’s important that you go into it with a clear vision of the realities. Contracts can, and DO get canceled (I’ve had it happen). This can occur for a variety of reasons from a bad fit to the hospital suddenly being over-staffed, budget reasons, or even a manager that just doesn’t like you. Fair? No! Reality? YES!
End a contract early
In addition, emergencies arise that might require you to end a contract early. Family medical issues are the number one reason for this occurring. There is also the issue of sick time, canceled shifts due to low census, and time off between contracts. It’s important to remember that as a traveler, we don’t get sick pay or vacation pay. If you miss work due to sickness or take time off between contracts, it’s up to you to make sure you are financially prepared.
Issues with Pay
As with any company, there can also be issues with ‘pay’. (Know your company’s reputation well!). I’ve experienced hiccups with the setup of my direct deposit, which delayed my pay as well as a couple of various payroll issues where my hours didn’t get transferred correctly. Mistakes aren’t common with payroll but they do happen and when they do, you don’t want to be left without grocery or gas money until it gets fixed!
How do I determine how much I need to set aside for an emergency fund.
There is no set number or amount that would fit everyone’s situations. I always recommend that you have enough in savings to at the very minimum get you back home! Ultimately, the best scenario would be to have a buffer of 3 months worth of financial back-up in addition to what you determine it would take to get you back home. This should be an easily accessible ‘liquid’ account that you can access on short notice.
I get asked often if there are expected periods of unemployment for a traveler. As for a steady paycheck….travel positions are abundant right now, especially if you are flexible on the location. You shouldn’t have any trouble staying employed. If you are prepared for those unexpected cancellations and time off between contracts, you should be fine. I’ve personally been traveling for over 9 years and by being flexible on location, I’ve never been without a position when I wanted one. But having an emergency fund set aside in case an emergency arises or you have difficulty securing your next position is crucial.
A good place to start is
Monthly expenditures * Re-employment period (or 3 months) + expenses to return home = Baseline safety net amount Many of us have traveled without a significant financial buffer but it’s not something that I recommend. For more information on travel nursing, you may want to read through these articles on Contracts.
Travel nursing is a very demanding profession that can leave little time for anything outside of work and family responsibilities (let alone sleep!). As a result, travel RNs often find themselves scrambling when it comes to personal finances or long-term financial stability.
As precious as free time is, it’s important for travel nurses to take time out to focus on the financial component of their lives regularly, or we suffer the consequences later! To help, we’ve compiled these 3 tips for travel nurses to help manage personal finances more effectively.
Travel Nurse Personal Finances Tips
1.) Don’t do it on your own:
Use a combination of technology and a financial advisor to help get financially organized. Utilize technology to get organized and utilize the help of a financial advisor. There are numerous financial, organizational software programs available on the market. Most of these do a good job helping you to stay organized. At a minimum, you need a program where you can input all of your data and accounts. Additionally, you should have a program where you can link your accounts so that values get updated daily. This will help you see where you are in regards to having enough short-term liquidity, building adequate long-term investments, and all areas in between.
Now, technology is great, but you will also need some human interaction to help you make the right financial decisions. So be sure to team up with an advisor where technology and human touch go hand in hand. This gives you have someone to call when questions arise and someone who can coach and guide you during both good and bad economic times.
2.) Set up automatic savings plans as a financial platform
It is tough to save money consistently if there is no automatic system in place. Relying solely on having the discipline to not spend all of the money in your checking or savings account can be a difficult and stressful task. On the other hand, it’s easier to have savings automatically allocated towards different accounts every month and have the money taken straight out of your paycheck or out of your savings/checking account. By having automatic deductions in place, two things occur that will ease your mind.
First, new savings and wealth are being built. Second, it gives you the freedom to spend everything left in your checking/savings account. By doing it this way, you will have less stress around what you can afford and what you cannot spend money on, and you know that you are saving for the future.
3.) Don’t stick your head in the sand – be engaged when it comes to your money!
You shouldn’t have to meet with your advisor and talk to your advisor all the time. However, you must be aware of how, where, and why your money is invested the way it is. You must have an investment policy statement and a profile set up that fits with your investment allocations. It’s also important that it fits with your overall financial plan and risk comfort level.
Make sure you talk or meet with your advisor at least two times a year. Make sure that the advisor is aware of job & family changes in addition to any other events that might affect your overall plan.
As a general rule, you should be fully aware of why the plan is set up the way it is. Consider understanding allocations, industries, geographies, etc. This is not only true when it comes to your investments but also holds in regards to:
your insurance portfolio
your debt reduction plan
savings rate (more on this in a future article)
overall financial plan.
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Securities products and advisory services offered through Park Avenue Securities LLC (PAS), member FINRA, SIPC. OSJ: 677 Ala Moana Blvd, Suite,720,Honolulu,HI (808-695-2100) PAS is an indirect, wholly-owned subsidiary of The Guardian Life Insurance Company of America® (Guardian), New York, NY. CreativeNurse is not an affiliate or subsidiary of PAS or Guardian.
One of the great things about travel nursing is the variety of experiences that it provides for those that choose this path. As a ICU travel nurse for the past 5+ years, I’ve learned a lot through trial and error. If you have interest in becoming a “Gypsy”, or are new to travel nursing, here are 8 things I wish I know before I became a travel nurse that I hope helps you in your journey.
1.) Have A Safety Net!
Traveling is a risky business and it may sound like a no-brainer but do not start traveling without some kind of savings. You have to be ready for the unexpected like when you car breaks down in the middle of nowhere or contract gets cancelled. You may have to live without working for a few weeks. SO, be prepared for it.
2.) Trust your gut!
I had a pretty lucrative contract in CA but I sold my soul for it. It was a pretty rough assignment using the most outdated charting system and floated from one end of that hospital to other. Yes I got paid well but I certainly worked for it. My gut was right when it said “this is too good to be true”. If you feel after an interview uneasy about anything ask more questions and don’t be afraid to pass on it.
3.) Read your contract!
You have to go over your contract with a fine toothed comb. Make sure you understand everything in your contract and that it includes all the things you have asked for. Some of the top things I make sure is in my contract are pay rates for the first 36 hours, hours from 36-40, and hours from 40+ (the exception is California), requested days off, cancellation policy or guaranteed hours, cancelled contract policy, travel and any other reimbursements, per diems, shift times, specific unit I will be working, and floating policy. Also make sure you understand things like non compete clauses in your contract or any other terms you are agreeing to.
4.) Educate yourself on taxes regarding travel nursing and what is meant by maintaining a tax home.
I spent hours researching articles related to travel nursing and taxes before becoming a travel nurse. This can be very complicated.
This will include a resume, certifications, copy of your diploma, vaccination records, copy of your identification card, nursing licenses, and references. Also, every company will request that you do a skills checklist before being submitted to hospitals.
All of us have made mistakes going in but if you know before you start what to look out for this may save you a lot of heartache.
7.) Travel nursing can be uncomfortable at times.
If you were to meet me now you would probably never guess I was not the most social and certainly not as confident as I am today. That I owe to travel nursing pushing me out of my comfort zone. I have learned to go at it on my own and not wait for anyone to tag along with me to have an adventure. I like to call it dating myself or solo explorations.
8.) Be ready for whatever is thrown your way.
Finally, your reaction to situations will make or break your travel nursing career. You can choose to throw in the towel or you can handle it. Travel nursing will test your limits sometimes but you have the power to run it or let it run you.
I hope you found these tips to be helpful. One of the keys to being a successful Gypsy nurse is the willingness to help your help your colleagues. Feel free to let me know if they do by leaving a comment here.
Want to share your own travel nursing tips with fellow Gypsies? Leave a comment here or (for the budding travel nursing writers out there!) email content@thegypsynurse.com with your ideas and we may be able to turn it in to an article and share it with the thousands of Gypsies in our network!
Throughout you career as a nurse, chances are that you’ll probably have the opportunity to partake in a variety of retirement plans either by setting up one yourself or by working for different employers.
Some of the major areas capable of creating income for you when you retire will be discussed in detail:
401(k)
This is a plan established by your employer which enables you to have some money removed from your salary automatically and put into the plan. Many travel nurse agencies will match a percentage of the amount you deposit. This makes a 401K a great option for nurse retirement income as travelers.
401(k) plans permit you to put off paying your taxes pending when you begin to make withdrawals except if your employers offer a Roth option in which taxes are paid up front. In addition, some 401(k) plans allow you borrow funds from your plan assets however, you must wait to clock 59.5 years before you will be granted access to the money. If for any reason you wish to make some withdrawals before the age of 59.5, there are additional tax penalties that must be paid. Understanding the plan fully is very vital as well as knowing that taxes are only deferred to the future when not paid up front.
Pension
Luckily for some employees, employers set up a pension for you where money is paid in monthly. A pension provides an income stream in retirement and is also a wonderful addition to every account you own. A pension account is hugely beneficial but only a few companies still provide pensions, most of them don’t. There are lots of decisions to make prior to getting your pension. More often than not, you must decide if this income stream will last throughout your lifetime only or if you’d like to include your spouse in the plan. Unfortunately for travel nurses, pensions aren’t a viable option for nurse retirement income.
IRA
This is an individual retirement account which can be created and you get to deposit funds into it provided that you earn an income. There are limits on income which determines if you qualify to put in a contribution that is deductible. The IRA is very similar to 401(k) in that it has a Roth option which allows you deposit money into the plan after taxes have been paid and then grants you access to withdrawals that are free from being taxed in the future.
Social Security
Here’s how social security works; while working, you are paying money into the collection of funds continuously which entitles you to receive funds from the program every month when you retire. The age at which you can begin your social security income varies and the later you begin to withdraw, the higher you can earn. The standard age of retirement to earn benefits from social security is 66 years however, withdrawals can be made as early as 62 years or as late as 70.
Annuities
Annuities are very similar to pension and also a great means of generating a lifetime income stream for those without pensions. This comprises an accumulation and distribution phase where money grows and an amount is paid out monthly to the annuitant on the plan. The sum of money paid out is dependent on the amount of money accumulated inside of the plan and also on annuitant’s age.
Real estate
Real estate can also serve as another source of income when the income gotten from rent is more than the mortgage paid or if the mortgage has been paid off completely. This income stream will keep bringing in money for you and your family pending when you make a decision to sell off the property. Real estate that generates income is great provided that you’ve got the energy required to care for the property or you can employ somebody to help manage it for you.
Regular investment account
Having a regular investment account in addition to IRA and 401(k) can be of huge benefits. A general investment account is not affected by tax rules and is built in the conventional retirement plans. When you have some money invested outside of the plans that qualify for tax, it makes it possible for you to withdraw money before age 59.5 with no tax penalty. It will also provide you more flexibility around planning your tax and around when you are ready to retire.
Cash Value inside of life insurance
In addition to the death benefit, several permanent life insurance policies have a cash accumulation account which grows with time. The cash accumulation inside of life insurance policies grows on a tax postponed basis and although its growth is not as quick as money invested in the stock market, it’ll make a wonderful addition to your retirement plan. The assurances behind some of these policies give one the confidence that no market corrections will happen within the policies and so we can establish a more predictable future.
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Variable annuities and their underlying variable investment options are sold by prospectus only. Investors should consider the investment objectives, risks, charges and expenses carefully before investing. This and other information are contained in the prospectus or summary prospectus, if available, which may be obtained from your investment professional. Please read it before you invest or send money.
Nurses spend long hours in the hospital and take very good care of their patients. As you already know, you fulfill a societal need every day and offer remarkable value to the people under your care.
You’ve been working for decades now and you’re considering retiring. However, you need to first decipher how your paychecks can be replaced with other sources of income such as social security, retirement accounts, and any other income-generating assets you own. As your final working year’s approach, certain questions may start looming and if you haven’t figured out your plans and the answers to those questions, the retirement stage could be an uncomfortable one especially in terms of finance.
You don’t know exactly how long your savings will last
A major concern of people who are retired is whether or not their overall savings will provide a lifetime income for them. They worry that advances in medicine and health care are enabling people to live longer and so wonder if they have enough saved up.
Sometimes, nurses entering retirement think that income throughout this new phase in life doesn’t have to increase over time and that having a fixed income schedule is all they need. However, they are often surprised when eventually they realize that inflation doesn’t end just because they have retired. Costs for travel, food, entertainment and other expenses will continually increase all through retirement period therefore, you need a longevity financial plan as well as a plan that accommodates “pay” increases over time.
If you strongly believe that you only need specific amount of money in your retirement account then you’re probably not quite ready to retire yet. Rather than work towards having a particular amount, try looking at other factors like your life expectancy, your health and unforeseen expenses as well as ways you can build additional structured income plan that will outlive you.
You do not understand how social security works
As soon as you clock 62 years, you are qualified to start getting your Social Security benefits. You can also defer it until you reach 70 years. Waiting to reach 70 years most times seems appealing because the benefits are more compared with 62 years or 66 years. What you need to do is sit with a financial coach and develop a plan that takes all your other assets into consideration and analyze the most efficient time to start collecting your social security benefits.
And if you think that your Social Security benefits will just happen and that there’s no need to map out how best to utilize those benefits, you’re probably not quite ready to stop working. Study the Social Security system and get to understand how it actually works. Consult a professional to ensure that you make the overall best financial decision around social security.
You do not have a plan with your partner.
As a couple, your retirement ought to be a fresh exciting stage in your life together but if you haven’t built a joint monetary plan, surprises may crop up. There are lots of decisions that must be made jointly before you retire, for instance how the money will be spent, how to get earnings, how to create a survivorship plan to enable the surviving partner to continue with the same lifestyle. You both also need to agree on the things you’d like to spend time doing when you retire. Do you intend to travel a lot or would you rather stay at home and spend time in your locality?
You’re most likely not quite ready to give up work and retire if you and your partner are yet to design a dream picture of what retirement ought to look like. That comprises the things you desire to do and how your income can help accomplish this.
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Securities products and advisory services offered through Park Avenue Securities LLC (PAS), member FINRA, SIPC. OSJ: 677 Ala Moana Blvd, Suite,720,Honolulu,HI (808-695-2100) PAS is an indirect, wholly-owned subsidiary of The Guardian Life Insurance Company of America® (Guardian), New York, NY. CreativeNurse® is not an affiliate or subsidiary of PAS or Guardian.
Many travel nursing companies have 401k plans in place and offer the plan as an employee benefit for their travel nurses. The 401k is a great place to put money aside, and very often, the company may even match the contributions made by the travel nurse, which makes it even more beneficial.
As a travel nurse, though, there are considerations that should be made before participating in the plan. Make sure to check how the matching works and look into how the vesting schedule is set up. The matching is basically going to show what the company will put into your 401k, and it is normally a percentage of your salary and can depend on what you put in yourself. The vesting schedule will show you how long you have to stay with the employer to keep the money they put into the plan. The vesting schedule often follows a sliding scale where you get to keep a higher percentage of the employer contribution the longer you stay. This is important to look at since travel nurses often change jobs more frequently than regular nurses.
How Do I manage multiple accounts?
As you advance your career and work for different employers, you may end up with multiple retirement accounts. This can be difficult to manage and also inefficient. Here are the 4 main options you have to manage your multiple accounts.
Option #1: Cash Out the 401k
You can cash out the account, pay tax and potential penalty on the distribution, and then take that after-tax money and invest it or spend it. This is often not the most efficient or most attractive choice to make, especially if you have a good amount of money inside the retirement plan. The cash out will be added to your other regular income (for the year in which you take your cash out), and suddenly you may end up in a higher tax bracket.
Option #2: Transfer to a new 401K
Do a transfer of the money to your new employer’s new plan if the new plan allows for this type of transfer. From a tax perspective, the tax law encourages transfers between companies and these types of plans. As long as you don’t make any withdrawals, you will not owe any current income tax, and all your old plan money can continue to grow until you begin income from this plan in retirement. As a travel nurse, this may not be the best choice as you may switch employers again.
Option #3: Transfer to a Traditional IRA
You can transfer the money directly to a Traditional IRA set up in your name. Again you have to arrange this transfer between the plan you are leaving and your new choice of IRA provider. In this type of case, you do not receive money, and again there is no current income tax concern. This will often make the most sense since an IRA is your own personal account, and it stays with you no matter where you end up working.
Option #4: Transfer to a Roth IRA
You may transfer the plan money into a Roth IRA if you qualify. In a Roth conversion, you will pay current income tax on the amount that you are converting, and then you can qualify for income tax-free distributions later on. This works as well as long as you follow the rules around Roth conversions.
So what is the best option?
It is not possible to say which option is the best. Things such as current liabilities, short-term savings, age, income, and what else is in place financially will determine the best route. In many circumstances, you will need to do a full financial assessment before making a correct decision. Your financial advisor can help direct you, taking all of these items into consideration.
About CreativeNurse: The CreativeNurse was created to help nurses make educated financial decisions in all areas of their financial life. We have educational seminars, personal planning sessions, and much more to help you make informed financial decisions.
Securities products are offered through Park Avenue Securities LLC (PAS), member FINRA, SIPC. OSJ: 677 ALA MOANA BLVD SUITE 720 HONOLULU, HI 96813, ph# 808.695.2100. PAS is an indirect, wholly-owned subsidiary of The Guardian Life Insurance Company of America® (Guardian), New York, NY. CreativeNurse is not an affiliate or subsidiary of PAS or Guardian. Guardian, its subsidiaries, agents, and employees do not provide tax, legal, or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation.
Many travel nurses have outstanding debt balances, underfunded retirement account, and short- term savings in place, but yet often have a solid regular income. Unfortunately, lifestyle and poor financial decisions often get in the way of building wealth.
Creating clarification around student loan options, understanding credit card payoff strategies, and simultaneously understanding how savings habits and retirement design implementation all are interconnected is very important.
Let’s look at some of the top questions that many travel nurses face in regards to their finances that will affect retirement and short term savings. These are all very important questions and addressing all 3 are of them should be done simultaneously but there are some natural steps and specific order of addressing the importance of each.
Top questions from travel nurses
How much should I save into my company-sponsored retirement plan?
If your company offers matching on their retirement plan a more detailed analysis should be made to see if retirement contributions should continue before short term savings are built up but in general, you should have money saved up outside of a retirement plan first so that emergencies and liquidity are taken care of. Once you have short term savings you have to make sure you put away enough so that you get the matching that the employer is providing within the retirement plan.
Should I accelerate the payments on my student loans, credit cards and other debts?
Make sure that any credit card debt or high-interest rate personal loans gets consolidated into a longer-term lower interest rate loan. By doing this you will create breathing room for yourself and you will start being able to build your emergency fund faster and then being able to save for retirement. So do not accelerate your loan payment until you have liquid short term savings in place.
Whenever a financial plan is set up the first action step should be to take care of things that could impact your life today. Build at least 6 months of living expenses in a liquid safe “portfolio”.
In summary the correct order should be to first protect against unforeseen events that could impact your life today (create at least 6 months of short term savings), consolidate your high interest credit cards into loans that are more affordable and then look at retirement savings. All of these decisions are really made simultaneously and cash flow could be going towards all 3 areas at the same time but it always makes sense to take care of your today before planning for the future.
There are other immediate actions that should be addressed up front (protection portfolio) but that topic will be saved for another article
2016-27191 8/18 Securities products and advisory services offered through Park Avenue Securities LLC (PAS), member FINRA, SIPC. OSJ: 677 Ala Moana Blvd, Suite,720,Honolulu,HI (808-695-2100) PAS is an indirect, wholly-owned subsidiary of The Guardian Life Insurance Company of America® (Guardian), New York, NY. CreativeNurse is not an affiliate or subsidiary of PAS or Guardian.
Making informed choices on investments as travel nurses often get overlooked.
Gypsy Nurses, your travel nursing career provides a tremendous amount of freedom and variety; you can explore new places, meet new co-workers, and control many aspects of your daily routine. However, as much as you may love being a Gypsy Nurse, that doesn’t mean you’ll want to do it forever.
Retirement goals are significant to travel nurses who look forward to spending more time with loved ones and a slower, more relaxing pace. So, you need to plan for retirement sooner rather than later to help ensure you get there and enjoy it!
Consistent Funding is KEY
Most retirement planners agree that it’s not the amount but regular, consistent funding that’s the key to successful retirement savings.
Some quick math: You might be surprised at just how much you can save with a steady plan.
For example: if you’re 25 years old and contribute $50 a paycheck with 26 paychecks per year, at a retirement age of 65, your retirement account balance could be worth $277,692. Increase that contribution to $60—that raises the potential balance to $333,231. These scenarios assume a very conservative 7% rate of return on your investment and are by no means a guarantee, but it’s important to understand the impact proper planning can have. While it’s certainly better to start saving early, understand that it’s also never too late to start saving for retirement – don’t give up if you’re an “older Gypsy” and haven’t started – now is the time!
Choosing the correct retirement vehicle is also critical in your planning.
With many agencies touting their 401(k) plans as retirement savings vehicles, you also need to take a hard look at what these plans can mean for you and your specific situation. The 401(k) plans the agencies are marketing often sound very attractive, yet if you take some time to read the fine print, the reality may surprise you.
In fact, after interviewing financial experts regarding 401(k) and IRAs as options for travel nurses, we found that a traditional IRA may be the smarter choice than a 401(k) for most travel nurses. Why? An IRA provides a convenient, effective, hassle-free way to manage your retirement account, regardless of who your employer is.
Here are some basic facts and realities of 401(k) and IRA plans we pulled together to help you sort through the noise out there:
Overview of IRAs and 401(k)s
Traditional IRA and 401(k) plans are the most popular types of retirement savings accounts that let the individual make “tax-deferred” contributions to the account. Tax-deferred means that you are not required to pay Federal income taxes on the money contributed to the savings account, but you’ll have to pay taxes on it later when you withdraw it upon retirement.
Investment companies typically administer these accounts so that the employee can invest the money in any number of available investment vehicles. All investment vehicles have some degree of risk associated with them and varying rates of return. Similar options are available for both 401(k)s and IRAs.
401(k) Matching Myths
Fact:
Many travel nurse staffing firms often hype the “matching” component of the 401(k) plans they offer. This means the agency will match the contribution up to a predetermined amount, dollar for dollar. For example, the agency could contribute $1 for every $1 that the employee contributes, up to 3% of their annual salary.
Traveler Reality:
Unfortunately, these firms rarely mention that most travel nurses don’t work at one agency long enough to meet the “vesting” requirements for matching funds. A “vesting period” is the period before the employer contributions are actually owned by the employee and can often be years long. For example, if the agency has a 2-year vesting period and you switch agencies after 1 year, you will forfeit the $1 for $1 employer’s match. These vesting periods are often unrealistic for travel nurses because they may change companies to secure specific job assignments.
Additionally, some agencies fail to make you aware that there is a “wait” period that requires some time frame of continuous employment before you can participate in the 401(k) program as well as any matching benefits. You may not even be permitted to take advantage of 30 – 90 days out, nearly the length of the assignment.
Retirement Plan Management 101
Fact:
Since you may decide to switch agencies over the course of your career, you may quickly end up with several 401(k) accounts that require attention. Managing these diverse accounts can get cumbersome as well as expensive. All of them will have some administrative fee associated with them. You can “rollover” the previous 401(k) to the 401(k) of your new agency, and you can also cash out or transfer to a traditional IRA.
Traveler Reality:
Many agencies don’t mention that additional fee are associated with certain actions that quickly lower your investment balance. For example, there are fees to transfer money out and taxes and penalties to cash out of your 401(k). The IRA for a retirement vehicle provides all the tax benefits of the 401(k) as well as the flexibility to fund it no matter which agency you work for or how many times you change; you carry it with you regardless of your employer or career choices. This means less paperwork, and it also avoids fees, both internal and external, for administration and transfer that are incurred if you have a 401(k).
Making Sense of Contribution Caps
Fact:
There is an $18,000 annual contribution limit (note: some plans have a “catch up” component that enables those over 50 years of age to contribute more) to the amount of money you can contribute to a 401(k) plan. In addition, there will often be a limit to the amount an agency will match in their program that’s dramatically lower than $18,000. Furthermore, there are investment limits to an IRA account. This is based on several factors, including your income. In general, the limit for IRA contributions set by the IRS is $5,500 for the 2017 tax year, with an additional $1,000 contribution allowed if you’re over 50.
Traveler Reality:
Data suggests that the IRA contribution caps do not impact most travel nurses. Most travel nurses don’t reach the maximum amount in their typical investment behavior. For example: using our $50 per paycheck example, this adds up to $1,300 for the year. It’s important to clearly understand if the cap is a practical issue before giving up all the benefits and flexibility of an IRA account.
The Gypsy Bottom Line – IRAs are a Better Choice for Most Travel Nurses
Many travel nurse staffing agencies are vigorously marketing their 401(k) plans, but these are filled with rules and restrictions that quickly diminish the overall value and convenience of a 401(k) and can make them poor choices as an investment vehicle for most travel nurses.
IRAs are a better retirement funding choice for most travel nurses. Here’s why—most IRAs provide:
Ownership: you can take it with you if you change employers with no paperwork No waiting period 100% vested on day one Automatic payroll deduction even if you switch agencies Options to save on a tax-deferred basis Simplified management Plans that can stay with you for the long term The ability to minimize fees
It’s possible to put your retirement within reach. Most importantly, our advice for travel nurses is to start saving as soon as possible. Carefully think about financial goals, and seek an agency that offers payroll-deducted IRAs.
We hope you found this information helpful. The Gypsy Nurse welcomes your comments, insights, or experience with these retirement plan options. Please share your comments here below – we would love to hear from you!
NOTE: The Gypsy Nurse is committed to serving the needs of today’s travel nurses. Our goal is to provide topical information and general guidance to our community. This information is not intended to replace that of a trained financial advisor. We strongly suggest that you consult with a certified professional to discuss your specific circumstances, retirement goals, and options.
If you’re grappling with the high costs of your school loan for your education, there are many programs available through a series of Federal and State-based financial assistance programs. These benefits can be determined based on the area in which you live, position (whether you are an RN, or a Nurse Practitioner, etc.), and level of education. In this series, we’ll look at some of the most popular programs.
Below are some basic guidelines around the Federal NURSE Corps Loan Repayment Program (NHSC). In short, repayment benefits are paid based on your length of service. However, there are many requirements and restrictions that apply. Please be sure to investigate the options thoroughly to ensure you are eligible and can take advantage of forgiveness benefits.
The NURSE Corps Loan Repayment Program (NHSC)
By definition, the NURSE Corps Loan Repayment Program enables dedicated registered nurses committed to caring for underserved people to serve in hospitals and clinics in some of America’s neediest communities, improving the lives of their patients and transforming their own.
Benefit Overview:
For 2 years of nursing service at a qualifying facility, the Federal Government will pay off 60% of your qualifying nursing school loan
For 1 additional year of nursing service, the Federal Government will pay off another 25% of your original loan balance
Service obligation at one of the thousands of eligible nonprofit hospitals, clinics, nursing schools and other facilities located in designated mental health or primary medical care Health Professional Shortage Areas across the U.S.
Results
Funding preference is based on your financial need and the facility where you work. According to the U.S. Department of Health and Human Services, in FY 2015, the NURSE Corps Loan Repayment Program:
received more than 6,000 eligible applications,
made approximately 600 initial awards to RNs and advanced practice registered nurses working at Critical Shortage Facilities and
gave out more than 1,110 initial awards to nurse faculty working at eligible schools of nursing, awarding a total of $39.7 million.
95% of those awards were made to RNs and advanced practice registered nurses working in Health Professional Shortage Areas (HPSAs) with scores of 14 or higher.
This program will open again for applications in early 2017.
Ownership: you can take it with you if you change employers with no paperwork
