Is BayCare’s Physician Retirement Plan Good Enough? Here’s the Honest Breakdown

For physicians at BayCare Health System, planning for retirement means more than funding your future — it’s about ensuring that your hard-earned savings are working just as hard as you do. BayCare’s 401(k) Retirement Plan, provides a solid framework, but there’s room for improvement, especially for those with a more active interest in investing.

The Foundation: Structured, Stable, and Generous

Eligible from day one, BayCare employees are automatically enrolled with a 3% deferral, with annual automatic increases up to 10% unless you opt out. The employer provides:

• Matching contributions: 50% of the first 6% of your salary.

• Nonelective contributions: An additional 2% annually.

  
  

Vesting in employer contributions is gradual, but your own contributions are always fully yours. Participants can borrow from their accounts, and the plan is managed under ERISA guidelines for transparency and compliance.

Investments: Somewhat Solid, But Highly Limited

The plan offers a reasonable spread of mutual funds and collective trusts — including offerings from Vanguard, Fidelity, MFS, and American Funds.

However, participants are restricted to the fund options provided by the plan, and those options are subject to change. This means physicians looking for more control or access to broader, lower-cost investments are out of luck — there’s no self-directed brokerage window, which would allow investments in the full universe of mutual funds (especially those from low-cost leaders like Vanguard and Fidelity).

The Value of Independent Advice

If you’re a physician who wants to take a more active or tailored approach to retirement planning — or if you’re simply unsure if your current strategy is the best one for your goals — a fiduciary financial advisor can offer clarity, objectivity, and customization beyond what the plan allows.

That’s where a firm like D.R. Harris & Co. comes in. As an independent, fiduciary advisory firm that specializes in working with physicians and medical professionals, they bring the knowledge and perspective needed to align your investment strategy with your unique goals — whether that’s early retirement, legacy planning, or optimizing tax efficiency for your investments.

Final Takeaway

BayCare’s plan is thoughtfully structured and offers value through automatic features and employer contributions. But for those who want greater flexibility or a more sophisticated investment strategy, advocating for a brokerage window could unlock significant potential. And in the meantime, partnering with a fiduciary advisor like D.R. Harris & Co. can help you take control of the financial future you’ve worked so hard to earn.

It’s your retirement — it should reflect your goals, your values, and your vision.

About Daniel Harris and D.R. Harris & Co.

Daniel R. Harris is the founder and President of D.R. Harris & Co., a national, fee-only fiduciary financial advisory firm based in La Jolla, CA (in the San Diego Metropolitan Area). With over two decades of experience helping physicians with their finances, Daniel is dedicated to helping physicians navigate the complexities of their financial lives. He earned his B.A. from Stanford University and his J.D. from UC Berkeley School of Law, where he focused on tax law—knowledge he uses to craft tax-efficient investment strategies for his clients.

Throughout his career, Daniel has observed over $1 billion in securities transactions, providing him with invaluable experience in wealth management, tax strategy, and financial planning. As a fiduciary, Daniel is committed to offering advice that puts client interests first.

At D.R. Harris & Co., Daniel works directly with physicians to create personalized financial strategies that address the unique challenges they face, from transitioning to becoming an attending to retirement planning. His goal is to help physicians manage their financial future with confidence, so they can focus on their careers and families and what matters to them.

Click here to set up an introductory call and discuss how we can help you with your financial transitions in life.