An ideal mortgage loan candidate has low debt and a sizable income. Low debt is not often the case, however, for new physicians leaving residency. On average, physicians start their careers with $166,750 in debt. Leaving residency with large debts and career opportunities still on the horizon, new medical practitioners have many of the characteristics banks often try to avoid.
As retirement age approaches, many physicians begin thinking about whether to retire early or continue working, full- or part-time. Many who choose the former are responding to changes in the healthcare system.
Graduating residents are tired of hearing it by now, but despite a good chance of having a greater income in the near future, this probably isn’t the time to trade in your used car for the keys to an expensive late-model vehicle. You want to be responsible, and that means thinking about how to spend wisely after residency.
As a new physician, how you manage your income is crucial in order to have a solid financial plan that is working for you. Decades ago, being a physician was much simpler; today, new physicians have to take on the rising costs of operating a practice plus the decreasing amounts of reimbursements from health insurance companies. So, how can you make the most of the income you are earning and avoid financial mistakes? Financial security starts by avoiding these five common financial pitfalls. Let us take a closer look at each one and the solution to circumvent it.
As a Texas physician, you understand the importance of having access to life-saving medical care should an emergency situation occur. Whether you are an extensive distance from home or traveling internationally, it is hard to know where the nearest medical facility is located. In addition, communication with medical personnel or evacuation to a better-equipped medical outfit can be tricky and expensive if you’re not adequately prepared. For situations such as these, it is crucial to consider arming yourself and your family with medical evacuation coverage.
As a physician, you are well aware of the benefits of traditionally-known insurance types, such as standard health, life and disability. While these plans are crucial in terms of protection, what if you prefer covering high deductible costs, out-of-pocket expenses your regular insurance plan does not cover, or suddenly face a critical illness that will require having extra cash on hand? When these life events arise, you can protect yourself and your family with an extra level of defense provided by a supplemental insurance plan.
As a new physician, emotions run high. There's relief at having completed your residency, the anticipation of starting the next chapter of your life, and the feeling of dread surrounding the mound of debt you've accumulated.
