Is Public Service Loan Forgiveness in Jeopardy for Physicians?

Is Public Service Loan Forgiveness in Jeopardy for Physicians?

You may have recently heard in the news about a lawsuit filed against the Department of Education (DOE) regarding the public service loan forgiveness program.  The suit is in response to the DOE retroactively invalidating once qualified payments made by certain attorneys working in public service jobs.  This should be concerning to anyone depending on public service loan forgiveness because the DOE’s explanation is unsettling.  Essentially they’re saying that previously approved certification forms don’t ensure final approval once 120 payments have been made. Public Service Loan Forgiveness Needs Assurances I work with physicians in nonprofit settings and I’ve advised them

Should Physicians Play the “Accredited Investor” Game?

Should Physicians Play the “Accredited Investor” Game?

Investing in publicly traded companies, either by purchasing an equity position or debt instruments, is relatively safe in today’s securities markets.  That is to say, you’re not likely to be buying “blue-sky” from a scam artist.  In the early part of the 20th century, lawmakers wrote “blue-sky” laws to prevent such practices and eventually led to the creation of the Securities and Exchange Commission (SEC).  The SEC requires companies who want to sell their securities to the public to register their securities with them.  However, every rule has its exemptions.  For this rule, the exemption is known as “Regulation D”.

How Physicians Can Choose Between a 15 Year Versus 30 Year Mortgage

How Physicians Can Choose Between a 15 Year Versus 30 Year Mortgage

Most people who buy a home don’t have much of a choice when it comes to choosing between a 15 year versus 30 year mortgage.  With a median household income of $55,775 in the US and stringent underwriting, most Americans can only afford to pay over a longer term.  Physicians, on the other hand, have much higher incomes and more flexible underwriting with physician loans.  Having the option to choose between a 15 year versus 30 year mortgage, you need to ask yourself if it’s right for you.  The truth is that it may or may not be depending on your

Thought Medical School was Expensive?  Check Out this College Cost Calculator to See What Your Kid’s Education Could Cost.

Thought Medical School was Expensive?  Check Out this College Cost Calculator to See What Your Kid’s Education Could Cost.

Medical school is expensive.  Not only financially, but there’s a great expense in time, effort, and perhaps some sanity.  While you may be pushed to the brink on your commitments of time and effort, the financial commitment is on a constant rise.  Physicians face a particularly difficult path to paying for their own education.  When you consider the cost of schooling, then the likelihood of that debt growing during training, you could be paying a significant portion of your income toward debt for up to twenty or twenty-five years.  Now consider your kid’s college cost.  Their undergraduate school will likely

Investing in Rental Properties for Physicians

Investing in Rental Properties for Physicians

Having a discussion about investing in real estate can go so many ways.  You could be talking about investing in a primary residence, a partnership or trust, or rental properties.  Depending on that, then we need to determine if it’s about commercial or residential.  Active or passive?  What about the tax treatment?  Will this concentrate your wealth too much? etc. In this post, I’m going to focus on investing in residential rental properties.  Many physicians are in a position where they can afford to invest in larger assets like these.  But should a physician do it?  Rental properties can be

What Professional Designation Should Physicians Look For?

What Professional Designation Should Physicians Look For?

When it comes to seeking out financial advice, it’s important to understand that there are a variety of flavors to choose from.  A financial professional designation may maintain expertise in very specific areas of finance, others keep it more broad. So what do you need as a physician? The truth is, there is no single correct answer. For example, if you’re a private practice physician, you may need a financial professional that has expertise in business finance. Conversely, if you are a W-2 employee, you may want to seek out someone with expertise in personal finance. There are dozens, if

Comparing Wills Versus Trusts

Comparing Wills Versus Trusts

Wills and trusts serve similar purposes but accomplish those purposes in different ways.  A Will and Testament is a more traditional way of handling one’s estate and is generally easy to create.  You could draft up a bona fide legal document outlining your wishes upon death, or you could produce something less formal that could still hold up legally.  In an extreme case, you could even produce a will orally to witnesses and some states will accept that as legally binding.  This is called a noncupative will.  Trusts, however, are always accompanied by a bona fide legal document requiring a

Should I Use Student Loan Forbearance During Residency?

Should I Use Student Loan Forbearance During Residency?

Deciding whether or not to choose forbearance during residency is a tougher decision than it may appear on its face.  When comparing a slew of repayment options with complicated rules versus “mandatory” forbearance allowed to interns, residents, and fellows, it’s understandable why one would choose the latter.  Heck, it almost sounds like it’s mandatory to choose forbearance, right?  (The mandatory applies to your loan servicer in this case).  Before you do though, let’s look at some of those options in simplified terms: Discharge To have your loans discharged would be the ultimate option, however, it’s extremely rare.  Loans that qualify

Insurance Overview, Part II: A 30,000 Foot Perspective

Insurance Overview, Part II: A 30,000 Foot Perspective

Last week I posted an article about the theory of risk transfer.  It explores the fundamental ways risk is handled and when to employ various strategies.  In certain circumstances, it’s okay to retain risk.  In other circumstances, you should avoid or reduce risk.  This week, however, I’d like to take a high-level look at the tools available to you when transferring or sharing risk. This hierarchy maps out the landscape for handling risk.  Once the risk is identified and we move to the second tier, we have two options.  Speculative risk is when there is the possibility of loss or gain

Insurance Overview, Part I: Theory of Risk Transfer for Physicians

Insurance Overview, Part I: Theory of Risk Transfer for Physicians

Risk is an involuntary reality of life.  No matter what you do (or don’t do) there are risks, great and small, that you are handling whether you realize it or not.  There are five possible ways to handle risk: Risk Avoidance Risk Retention Risk Reduction Risk Sharing Risk Transfer RISK AVOIDANCE Certain types of risk can be avoided by simply not engaging in the activity that presents risk.  I recall a conversation I had while driving with a friend and her roommate.  While on the freeway, a motorcyclist flew right by us and I joked that I would never get