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May 24, 2021

The sooner you start planning for retirement, the better off you're going to be in the long run. Even if it's just a tiny bit that you save towards your retirement, it's going to make a big difference! Judd Carlton is a financial advisor serving families, individuals, and businesses in Morristown, NJ. He explains the importance of thinking about retirement as soon as possible. Then, we dive into the more financial aspects of your practice. For instance, if you've got a group practice, Judd describes why you may want to create either a 401(k) for your employees or some other retirement plan within your practice. Plus, Judd reveals the differences between SEP IRA & SIMPLE IRA Plans.

Meet Judd Carlton

Judd Carlton is a financial advisor serving families, individuals, and businesses in Morristown, NJ, and beyond. He specializes in finance for business owners and mental health professionals, helping them align the finances of their practice with their long-term financial planning and investment objectives.

Judd graduated Magna Cum Laude from New York University with a BA in Economics and has an MS in Accounting from the Silberman College of Business at Fairleigh Dickinson University. He also holds the CFP® and AIF ® designations.

Judd is also a husband, father of three girls, and dog dad. He posts, blogs, and makes YouTube videos on financial subjects that may be of interest to business owners, psychologists, psychiatrists, and mental health group practice owners.

Think About Retirement Early

It's essential to start thinking early about retirement because, in the world of investing, time is on your side when you have a lot of it. The earlier you get started then, the better things will work out for you because of the power of compounding. Even starting five years or ten years sooner can make a huge difference. As you change and develop in your career, you might jump from an employee role to a self-employed role; then, the complication accelerates. The wise choice when it comes to investing in your retirement is to be conservative. You never want to have an issue or feel stressed about money. Once you cross those hurdles, it's good to start thinking about what's next. So that's often where Judd will offer some guidance about managing your cash flow while saving up for retirement.

How To Approach Retirement

There's a couple of ways to approach setting up the right retirement plan. First, you need to consider what kind of business structure you are working with. If you have a solo practice, saving for retirement will be a lot simpler to figure out. If you have a group practice, things are going to be more complicated. However, both will have great opportunities. A great way to start is with small and simple things. As time goes on, you can really be more methodical and look at every possibility. Hiring therapists can be challenging when there is a mental health crisis. So, you may want to offer therapists a 401(k) option as an incentive. Even as a small business, you can create a 401(k) that feels just like what a fortune 500 company might have. Later, you can start thinking about a pension plan.


Judd recommends a few different options when it comes to retirement plans. SEP (Simplified Employee Pension) plan provides employers a method to make contributions to the employees' retirement and their own retirement. The SIMPLE (Savings Incentive Match Plan for Employees) gives employees a way to make salary reduction contributions, and the employer makes matching or nonelective contributions. Each plan has a limit on how high you can go. SEP goes a little bit higher, and there's less flexibility with this plan – everyone is going to get the same percent. Any financial planner or accountant can help you figure out which plan is right for you and your practice.

Why You Should Consider A Roth IRA

The Roth IRA was introduced for people who are early in their career or for people who do not want to save. Some of the regular IRA plans are not that helpful when you are in a lower tax bracket. When you put money into the Roth, you don't get any deductions. However, that money is going to grow for years and years. When you take that money out, it's going to be completely income tax-free. That's going to be tremendous savings; it's a powerful tool. If you're newer to your career and you want to start saving money, Judd highly recommends starting a Roth IRA.

Being transparent… Some of the resources below use affiliate links which simply means we receive a commission if you purchase using the links, at no extra cost to you. Thanks for using the links!

Judd’s Resources

Email Judd:

Judd's Website

Judd on LinkedIn

Judd on YouTube


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Gordon is the person behind The Practice of Therapy Podcast & Blog. He is also President and Founder of Kingsport Counseling Associates, PLLC. He is a therapist, consultant, business mentor, trainer, and writer. PLEASE Subscribe to The Practice of Therapy Podcast wherever you listen to it. Follow us on Twitter @therapistlearn, and Pinterest, “Like” us on Facebook.