Resident and attending finances

Question 1

What is the main takeaway from Dr. Shamburger’s lecture on resident and attending finances?

Answer 1

Continue to live like a resident (i.e., cheap) for a few years post-residency while you pay off loans.

Question 2

The following are Dr. Shamburger’s recommendations for financial planning during residency:

1. Emergency fund: _____________.
2. If residency offers ______ matching, put in __________ possible.
3. Loans: _____ (do/don’t) put them in forbearance.
4. Can consider _________ insurance.

Answer 2

The following are Dr. Shamburger’s recommendations for financial planning during residency:

1. Emergency fund: 3-6 months worth tie over (~10-15k).
2. If residency offers 401K** matching, put in **the maximum possible.
3. Loans: don’t put them in forbearance.
4. Can consider disability insurance.

Question 3

During residency, loan payback should be via a(n) _________- based repayment plan.

Can consider a _________ loan forgiveness program.

Can typically pay off loans in ~____ years at ~$2500/month.

Answer 3

During residency, loan payback should be via an income- based repayment plan.

Can consider a PSLF loan forgiveness program.

Can typically pay off loans in ~ 10 years at ~$2500/month.

Question 4

What is typically entailed in a PSLF (public service loan forgiveness) program?

Answer 4

10 years working for a 501c3

(Note: more hospitals are 501c3s than one might think)

Question 5

According to Dr. Shamburger, what is the first decision to be made once is earning an attending’s salary?

Answer 5

Loan repayment strategy:

• Option 1: Refinance ⇣ to a 2-4% interest rate (keep living like a resident)
• Option 2: Enroll in a PLSF program

Question 6

Once moving from a resident salary to an attending salary and determining how you will pay off your loans, you should (in order of importance):

• increase your ________ fund,
• consider ________ insurance and ________ insurance.

Answer 6

Once moving from a resident salary to an attending salary and determining how you will pay off your loans, you should (in order of importance):

• increase your emergency fund,
• consider disability** insurance and **life insurance.

Question 7

As an attending purchasing life insurance, specify that it is _______.

For disability insurance, specify that it is _______.

Answer 7

As an attending purchasing life insurance, specify that it is term.

For disability insurance, specify that it is own-occupation.

Question 8

Once moving from a resident salary to an attending salary and determining how you will pay off your loans, you should (in order of importance):

• eliminate any high-interest debt (e.g., ________or other debts at ________% interest),
• max out tax-protected accounts (e.g., ________, ________, ________),
• eliminate medium-interest debt (e.g., ________, ________%).

Answer 8

Once moving from a resident salary to an attending salary and determining how you will pay off your loans, you should (in order of importance):

• eliminate any high-interest debt (e.g., credit card** or other debts at **15-20% interest),
• max out tax-protected accounts (e.g., post-tax: Roth IRA;**, **pre-tax: 401K, 403B, HSA),
• eliminate medium-interest debt (e.g., car**, **0.8%).

Question 9

How much do most physicians make during residency?

Answer 9

50-60K / year

Question 10

How can one verify that an offered “physician loan” is actually a physician loan?

Answer 10

• Confirm that it is 0-5% down
• Confirm that there is no PMI (private mortgage insurance)

Question 11

Once making an attending’s salary, what qualities should one select for in a financial advisor (assuming they want one)?

Answer 11

• Make sure the advisement is PEG-based (price / earnings-to-growth; non-speculative)
• Pay 1 - 10K/year (<1 will be low quality; >10 is excessive)