The start of your independent medical career can be packed with stressful financial decision making. How much should I spend to start practicing? Should I buy a home or continue to rent? Should I be paying off debt or starting to invest?
Statistically speaking, this is you, the average new Canadian medical specialist:
– You are in your early 30s: the largest cohort is age 30-32, with the second largest being 33-351.
– You believe in delayed gratification from a marriage and family point of view. A study from UK found that by the age of 24-25, only 2% of women MDs had a child, vs 41% of the general population2. In Ontario, the median age for first childbirth in women MDs was 32 years old3.
– You are carrying the burden of student loans. Canadian med school graduates average $90K, not including debt from pre-med (average $30K) or residency. About 20% owe >$200K4.
Fresh off paying thousands for licensing exams and perhaps moving cities, you are now a member of bewildering array of mandatory organizations with, of course, mandatory fees. You are now further in the hole before seeing a single patient. For me as a Respirologist in Ontario, I was paying about $8K per year to be a member of OMA, CPSO, CMPA and RCPSC for the privilege to work.
Since you are no longer a resident or fellow, you must buy your own insurance policies. Based on my personal situation, I ended up with disability, medical/dental, life, and critical illness insurance. The types and amounts of policies vary significantly between MDs based on family situation, number of dependents, income, etc. Ultimately, having appropriate insurance coverage will let you sleep at night.