Protecting What Matters

As a physician, your income puts you in the top 5% of all Americans. Your earning potential makes you a target for every financial advisor and insurance agent in the business. However, not all advisors have your best interests at heart. Insurance advisors do not take a Hippocratic oath and even many well-intentioned agents do not understand the unique needs of physicians. As a result, some physicians end up without enough coverage in the areas they really need and too much of the types they don’t need. How can you be sure if an agent is recommending what is really best for you?

Teenagers and college grads expect to “have it all together” by their 30s. It’s ok to be a kid in your 20s — even in med school — but when the infamous 3-0 rolls around, it’s time to focus on building a solid foundation, climbing the ladder, and settling down to start a family.

Physicians are among the highest earners, but many don’t feel like it. Having already managed large debt burdens on compressed budgets by the time they pay off their student loans and build up to a sizeable income, many physicians learn the value of setting financial goals and seeking professional advice early on.

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.

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 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.

When you get married, there’s an array of things that change for you and your spouse. You now address each other as husband and wife, you come home a little earlier from work to see your companion, and you spend time making plans for the future together. Additionally, maybe you have moved into your spouse’s apartment or home, or perhaps you are considering buying a new home together. No matter what your future plans look like, marriage will undoubtedly impact your finances. Below we have broken down five financial changes that newlyweds should be prepared for.