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I know my numbers are going to be off, but I will give it a try.
I'm going to use a starting salary of $60,000 for engineering and a yearly salary of $132,000 for doctors.
Both graduate the same year. Student A is the engineering professional and Student B is the doctor.
For simplification, we are assuming no student debt from undergraduate school….I'm also not taking into account cost of living and everything else for simplification.
Student A:
Years in employment: please know that these numbers are not fully accurate….just a good guess to the numbers
1: 60,000
2: 62,000
3: 65,000 (attends masters degree program)
4: promotion…..85,000
5: 90,000
6: promotion…..100,000
7: 105,000
8: 110,000
9: 115,000
10: 120,000
11: 125,000
12: 130,000
13: 132,000
I will use 135,000 from here on out for the next 25 years
Total life-time salary for first 13 years = 1,299,000
Total life-time salary for the next 25 years = 3,300,000
Student B:
Medical school debt: 200,000
Year 1: 0
Year 2: 0
Year 3: 0
Year 4: 0
Year 5: 44,000
Year 6: 46,000
Year 7: 48,000
Year 8: 52,000
(for New York residents, add on 10,000 more for each year)
Year 9: 132,000
Year 10: 132,000
Year 11: 132,000
Year 12: 132,000
Year 13: 132,000
First 13 years of life-time income = 850,000
First 13 years comparison
Student A: 1,299,000
Student B: 850,000
Difference: 449000
Next 13 years of income = 3,300,000
38 years of total life-time income
Student A: 4599000
Student B: 4150000
Difference: 449000
Now add in medical school debt for person B
With a debt load of 200,000 with a 10 year repayment plan with a 6.8 percent interest = $236,483.75
4150000 – 236,483 = 3,913,517
Difference:
Person A: 4599000
Person B: 3913517
Difference: 685483
You will never catch up to a person in your life-time (from straight earnings) if you earn $132,000 a year as a doctor in your first year and throughout year life-time when you compare a person making the same salary level when you start as a doctor.
I'm assuming the usual undergraduate, to medical school, to residency path
I'm going to use a starting salary of $60,000 for engineering and a yearly salary of $132,000 for doctors.
Both graduate the same year. Student A is the engineering professional and Student B is the doctor.
For simplification, we are assuming no student debt from undergraduate school….I'm also not taking into account cost of living and everything else for simplification.
Student A:
Years in employment: please know that these numbers are not fully accurate….just a good guess to the numbers
1: 60,000
2: 62,000
3: 65,000 (attends masters degree program)
4: promotion…..85,000
5: 90,000
6: promotion…..100,000
7: 105,000
8: 110,000
9: 115,000
10: 120,000
11: 125,000
12: 130,000
13: 132,000
I will use 135,000 from here on out for the next 25 years
Total life-time salary for first 13 years = 1,299,000
Total life-time salary for the next 25 years = 3,300,000
Student B:
Medical school debt: 200,000
Year 1: 0
Year 2: 0
Year 3: 0
Year 4: 0
Year 5: 44,000
Year 6: 46,000
Year 7: 48,000
Year 8: 52,000
(for New York residents, add on 10,000 more for each year)
Year 9: 132,000
Year 10: 132,000
Year 11: 132,000
Year 12: 132,000
Year 13: 132,000
First 13 years of life-time income = 850,000
First 13 years comparison
Student A: 1,299,000
Student B: 850,000
Difference: 449000
Next 13 years of income = 3,300,000
38 years of total life-time income
Student A: 4599000
Student B: 4150000
Difference: 449000
Now add in medical school debt for person B
With a debt load of 200,000 with a 10 year repayment plan with a 6.8 percent interest = $236,483.75
4150000 – 236,483 = 3,913,517
Difference:
Person A: 4599000
Person B: 3913517
Difference: 685483
You will never catch up to a person in your life-time (from straight earnings) if you earn $132,000 a year as a doctor in your first year and throughout year life-time when you compare a person making the same salary level when you start as a doctor.
I'm assuming the usual undergraduate, to medical school, to residency path