In a world where conspicuous consumption and a desire to keep up with the Kardashians often takes centre stage, the concept of ‘stealth wealth’ is gaining traction. For physicians, who frequently earn higher incomes but face unique pressures and expectations, adopting a stealth wealth approach can be particularly beneficial.
The journey to becoming a staff physician is an arduous one, complete with long hours of residency, high stakes exams, and often huge student loan burdens. During our time in school, we became accustomed to the concept of ‘delayed gratification’, where we suffer in the short term in exchange for the promise of rewards (professional and financial) when we finish training. While it is tempting to go crazy with luxuries as a newly minted staff physician, it’s crucial for new grads to manage their finances wisely. Living like a resident, even after the jump in income, can be a savvy financial strategy that allows you to pay down debt, start investing, and secure a more stable financial future. In this post, we’ll explore the concept of living like a resident and how it can benefit you.
The long-standing debate between paying off debt and early retirement investing can’t be won just by looking at the math; the best choice for you depends on your comfort level and financial goals. In this blog post, we will delve into the arguments for debt repayment versus investment early in your career as a Canadian physician.
The one decision that a physician will make that weighs the most both personally and professionally is committing to a partner for marriage (or living common-law). This is relevant for most of us, since a Medscape survey in 2020 of 15,000 MDs in 29 specialties showed that 80% of MDs are married. Getting married or cohabitating is a transformative life event, but also comes with its own set of challenges. For physicians, marriage involves unique considerations given the demanding nature of the profession. Before tying the knot, it’s crucial for the MD and their soon-to-be spouse to have honest conversations about various aspects of their lives, which we will explore in this post.
Understanding your expenses and income is crucial for financial stability and planning. It allows you to track where your money is coming from (income) and where it’s going (expenses). By creating a budget sheet that outlines inflows (income) and outflows (expenses), you gain a clear picture of your financial health.
In a previous blog post (“Insurance for Canadian Physicians”), I had listed disability insurance as the single most important coverage you need after you finish your medical training. The same caveats apply as before, namely that I am not a certified financial planner or insurance expert, and that my opinions are based on experience and advice from colleagues. In this post, I will explain why I think disability insurance is vital, and explain the most useful ‘riders’ to the policies.
Physicians are entrusted to safeguard the well-being of their patients. While they focus on helping others, it is vital that MDs protect their own peace of mind and their practices through adequate insurance coverage. Normally you wouldn’t start a blog post with a series of caveats, but I think it’s warranted since this area is so complex.
Physicians dedicate their lives to providing excellent care for their patients. However, amidst their demanding jobs, it is crucial for them to take the time to understand and manage their own finances. Financial literacy is generally overlooked in medical training, but it is an essential skill that impacts both the personal and professional aspects of an MD’s life. According to Environics Research 2019 MD Physician Literacy Study, 56% of younger physicians said that they did not receive financial education before starting their careers. The same survey showed that practicing MDs scored just 55% on a test of basic finance (although that is better than the 53% attained by residents). In this post, we will delve into why it is vital for physicians to understand their own financial situation.
Are you going to Vascular 2023? Canadian healthcare is entering a pivotal time where the demand and pressure on specialists is growing at an exponential rate. Over the last few years, you may have asked yourself some key questions about your future. Our team will be in Montreal from October 25 to October 29, 2023, and would love to meet up for a chat.
We understand that the transition from sole ownership to a partnership model can be frightening for doctors, and team members alike. It can be an unsettling time with the fear of the unknown.
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