Physician Finance Minute

When does the IRS allow you to do so without a tax penalty? Generally speaking, there are six different hardship circumstances that allow you do so. If you have an unexpected medical expense, need a down payment on a home, or need to fund a college education then you can withdraw funds without the tax penalty.

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Avoiding lifestyle inflation once you’re an attending physician is one of the best pieces of financial advice you could receive in your years after training. Is it the most popular idea? Nope. Is it easy for you to adhere to as you go from making fifty thousand to two hundred thousand? Definitely not. But chances are, you’ve made a lot of sacrifices over the years and your financial house has taken a hit.

For many of you, you’ve gone from making 50,000 a year as a resident to now making well over 200,000 a year. A very common temptation is for physicians to run out and buy new things- whether it’s a nicer car or a bigger home. But before you make these big purchases, you need to ask yourself a few questions to determine if this is really where you should be spending your hard-earned money.

You probably also have quite a lot of debt, as most doctors do. Have you ever thought of it as good debt versus bad debt? Think about it this way: cars are not good investments. Cars are almost always liabilities in the financial sense, but that doesn’t mean they are not valuable. They simply have a value in terms of their function but not in terms of monetary value.

As an attending physician, chances are you’re finally earning the salary you knew you’d someday make. And even though it’s not the only reason you choose to practice medicine, it definitely helps when you start receiving those larger paychecks. But with the larger salary comes another question. How do you justify setting aside chunks of your paycheck for retirement savings instead of putting all your money towards student loan or credit card debt?

Look here! I want you to know what it takes to build the life your dream of. In order to do that, you need to have your finances in order! Keep learning, keep growing: www.financialresidency.com/tip

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Here at financial residency dot com, we like to devote a lot of time talking to you about the basic building blocks of financial success for physicians. One of the pillars of our philosophy is that you have to make sure you have adequate long term disability insurance. Yes, it’s that important of a topic that all physicians need to make a plan for.

Many people assume being a physician automatically means you have a high net worth. But what exactly does that number even mean? Net worth isn’t quite as simple as looking at one particular number, but the good news is, it isn’t very hard to figure out either. Knowing your net worth is important to help you keep track of your financial progress. If nothing else,

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