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Smart financial decisions every new resident should make

Residency Program Insider, December 1, 2017

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The financial opportunities available to physicians expand exponentially as they settle into residency. For them to build a solid financial foundation, it is recommended that they begin making smart fiscal decisions early in their residencies.

As they transition from medical school and into residency, residents should research and select the best loan-repayment strategy that works for them. Income-based repayment is one of the most popular options as it also creates the opportunity to save and potentially re-invest a portion of funds that would’ve otherwise gone toward higher loan repayment plans. Stockpiling some extra cash (usually three months’ worth of salary) provides an excellent buffer against unexpected expenses.

Securing needed insurance coverage is also recommended. Residents have already devoted so much time, money, and effort into their futures, that purchasing comprehensive disability insurance allows them to protect their hard work. Disability and life insurance will also add to peace of mind, especially once they reach retirement age. It is important to keep in mind that certain plans offered by employers may not come with any kind of long-term protection that can support a family, sometimes supplemental insurance policies are necessary. 

Source: AMA Wire

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