Finance

Is it still worth it to go to medical school?

Finance
November 21, 2018

Medicine has changed immensely over the past 40 years. Not only has the drugs, surgeries, and procedures changed, but the culture and economics of medicine have changed as well.

Radiologist and blogger Xrayvsn enlisted physician finance bloggers young and experienced to write posts on the common topic of generational perspectives of the past, present, and future of medicine:

  1. Doctor of Finance MD: A Late-Career Perspective On Medicine
  2. Xrayvsn: Medicine …

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The psychological impact of quitting medicine

Finance
November 20, 2018

We talk about money on my website, and how to make sure that you have enough of it.  In fact, that’s pretty much the entire strategy for the growing crowd of people in the world who are gunning to retire at an age that most neurosurgeons start their careers.

Those of us in the medical field who also have similar ambitions to work our finances intelligently are likely to have similar …

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Meet the physician who became a financial advisor

Finance
November 13, 2018

If you can’t beat ’em, join them (and make it better).  Am I right?  This was some of the sentiment I felt as I registered with FINRA (Financial Industry Regulatory Authority) to take the Series 65 exam.  Passing this exam will allow me to register in my state as an Independent Advisory Representative (IAR) and function as a financial advisor.   This begs the question: Why should I become a financial …

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You shouldn’t worry about public service loan forgiveness

Finance
October 31, 2018

Anger. Jealousy. Envy. Frustration. I was feeling all the emotions when NYU announced in August that their incoming and subsequent classes would be tuition-free into perpetuity. One consolation: at least I wasn’t one of the chronologically unfortunate that graduated from the school just months, or a year, before that announcement. For them, the time difference was small, but the difference in loans was vast — one year of tuition costs …

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Physicians have the skills to be entrepreneurs

Finance
October 24, 2018

Within the medical community, there seems to be a prevailing belief that when it comes to business and finance: Well, we’re just not very good at it. Some chalk it up to the lack of financial training we received in medical school. Others say it’s simply not in the physician’s DNA – that our brains are wired differently.

I would disagree.

In reality, I’ve seen many, many physicians become successful …

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Don’t watch too much financial news

Finance
October 23, 2018

There’s a lot of financial information out there. Some of it is helpful, and some of it is unhelpful.

I’m sure many of you take notice when the Dow Jones falls 1,000 points in two days.

And even if you don’t usually follow the stock market on a daily basis, when the stock market is dropping, the financial news media will let you know about it.

Because when the stock market is crashing, …

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A simple solution to rapidly increase physician financial literacy

Finance
October 17, 2018

Physician financial literacy is dismal. In the past, many physicians got their first introduction to finance from insurance salesman or financial advisors who give presentations over a free steak dinner.

My medical school’s attempt at teaching us personal finance was to have a financial advisory firm give a half-day lecture about student loan management, budgeting, and investing. While the advice wasn’t inherently bad, I don’t think many of my classmates retained …

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7 reasons why this physician works half-time

Finance
October 16, 2018

By the time you read this, I will have completed a transition to working half-time. Now, I know a lot of docs out there think emergency docs are already only working half-time, so perhaps I ought to start with explaining why that isn’t the case, even if emergency physicians work fewer hours than many other physicians.

Let’s start with the fact that most Americans consider 35 to 40 hours a week …

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10 things wealthy doctors won’t tell you

Finance
September 25, 2018

Guess what? You’re surrounded by rich doctors. You probably didn’t even know it. You know why? Because doctors don’t talk about that filthy lucre known as money. So while you’re assuming that all the other doctors in your group, office building, and hospital are in the same position as you, you’re wrong. Some of them are rich. There are ten things they’re not telling you, but which …

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It’s really hard to make money in the stock market

Finance
September 24, 2018

No, I’m not saying that the process of investing in index funds is difficult. In fact, it’s actually quite simple to build a diversified index portfolio, whether your money is invested at Vanguard, Fidelity, Schwab, or Etrade.

What makes investing in the stock market so difficult is tolerating its high volatility. Many investors are unable to stick with the stock market in the long run because of the ups and downs.

But those who stay invested …

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10 financial tips for physician maternity leave

Finance
September 22, 2018

Let’s be real here. Women make babies. Women also kick butt working. Sometimes women need to make babies while kicking butt working. So, you know, the human race can survive … no big deal. But, all too often, families are unfairly burdened by our dismal maternity support system. Bleary-eyed and bloody, new mamas emerge from childbirth facing a mountain of medical bills and no income.

For my first pregnancy, my family …

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Stop the money-shaming in medicine

Finance
September 18, 2018

There is a taboo in medicine. It is becoming less prominent, but it still exists. You’re not supposed to talk about money. Not how much something costs a patient, not how much you get paid, not how you invest, and certainly not about the freedom from medicine that financial independence can bring.

This first shows up as you are applying to medical school. You don’t want anyone writing a …

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How this physician paid off $100,000 in debt in 6 months

Finance
August 27, 2018

First of all, I am far from a financial genius. I am also not a natural saver. Thanks to scholarships and jobs, I made it out of college without loans. But, I took out a $191K for medical school. In the middle of med school, I took a year off to teach. During that year, I didn’t put anything towards student loans and lived it up. Unfortunately, in forbearance, those …

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What physicians need to know about living trusts

Finance
August 22, 2018

One common question that doctors face in estate planning is whether to establish a trust. This topic gets brought up in the doctors’ lounges, especially after someone gets a pitch from their financial planner. Most doctors who bring up the topic are quite enthusiastic, and cite that doctors need a trust because “we make a lot of money.”

Fair enough.

Medical students and residents probably do not need a trust

I’ll get this …

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What do the Fidelity ZERO mutual funds mean for physician investors?

Finance
August 20, 2018

Vanguard, Fidelity, and Schwab have been engaging in a fierce competition to claim the mantle as the leading provider of low-cost index funds. As a result, each has aggressively lowered their fees for their index fund offerings over the past few years and advertised their low-cost offerings to investors.

After the latest round of fee reductions in mid-2017, I wrote a post speculating whether it was inevitable that Vanguard, Fidelity, …

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Live like a medical student, invest like a professional

Finance
August 19, 2018

If money is the root of all evil, what does that make debt? Evil’s ugly big brother.

A report by the Association of American Medical Colleges (AAMC) revealed that over 86 percent of medical graduates carry an educational debt principal of over $160,000, with a significant number of graduates reporting debt totaling over $350,000. In addition to massive student debt, personal financial challenges include the loss of nearly a decade of …

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A private equity primer for physicians

Finance
August 12, 2018

“My group has been approached by a private equity company.  It sounds like a great deal!  Any questions I should ask?”

Whether it be through one on one discussions or through the Physician Side gigs group, I’ve found myself having this conversation with increasing frequency.  Part of the reason for that is because I find it fascinating, albeit also sometimes terrifying.  As the trend towards consolidation …

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How perception can affect your financial situation

Finance
August 10, 2018

An interesting phenomena recurs when I work with physicians to makeover their finances. They almost never believe that overspending is the problem. They believe the reason their credit card balance is growing, and their large monthly income isn’t enough to pay their expenses can’t be due to their own choice to overspend. They always have a reason for the lack money:

They have huge student loans.

They have eight kids.

They are in …

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Converting your 401(k) to a Roth IRA after residency or fellowship

Finance
August 8, 2018

Many residents and fellows will contribute to a 401(k) or 403(b) over the course of their medical training. They should be commended for saving for retirement on just a resident’s income.

Often, newly-minted attendings wonder what to do with these 401(k)s or 403(b)s from their training hospitals. In particular, they wonder whether they should convert their 401(k) to a Roth IRA.

4 options: some better than others

In general, there are four things …

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Is debt-free medical school a financial blunder for doctors?

Finance
August 3, 2018

Education can be expensive. Higher education can be even more costly. Even partial scholarships can be deceptive as one might opt for a more expensive school for the sake of redeeming “free money.”

As a student, I had no financial understanding of return on investment when I was considering higher education. All in, I plowed through more than a quarter million dollars in my college and medical school after substantial scholarships …

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