Debt-Free Doctor. What should I put my money towards instead?

[Lifelong_Learner]

Hi all,

I have been thinking about this for such a long time, but I didn't know who to reach out to.

Background: I am a Kauffman Scholar, as well as an awardee of several other scholarships. Kauffman Scholars, Inc is a scholarship program built to give underprivileged urban Greater Kansas City youth an opportunity to strive for academic excellence through mentoring as well a scholarship valued up to 5 years of schooling. I am also in the six-year medical program at UMKC. Basically, I will graduate debt-free with my MD and a Bachelor of Arts fully funded by scholarships. (I have received cash scholarships directed to me that I am going to use for residency applications/interviews and USMLE fees). Words cannot describe how grateful I am. My question may seem naive, but I have had no formal nor family education in putting money to good use nor in understanding the financial burdens of being a doctor.

Questions: If you were in my position, what would you be putting your money towards? What financial knowledge should I invest time in learning about? Because I have been given this opportunity, it would be such a waste not to make the most of my providers' generosity.

Thank you so much,
GC

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[Microshaft]

In this market, you should try to dollar cost average the S&P 500 index through ETFs (a span of a few years). As an MD I doubt you will have time to actually perform valuations on companies and pick your own stocks as well as timing your exits

maybe invest in bond funds for an income stream

depends on your risk appetite obviously

 

[libertyyne]

Max out 403b in index funds
Max out Roth IRA index funds
put as much after tax money as you can in index funds every month. and some bonds.
Buy the appropriate amount of insurance .
learn how to budget and live within that budget.
Probably after 10 years of this you could retire if you wanted to.

 

[trs88]

I know you said you'll graduate debt free, but have you worked out a budget yet to see how much cash you'll have left over after school expenses?

 

[libertyyne]

Here are some books that I throughly enjoyed on investing. My bent is pretty clear on the question, but time and time again dollar cost averaging of index funds has been shown to outperform mutual funds and stock picking.

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https://www.amazon.com/Fooled-Rando...rd_wg=B5IZa&psc=1&refRID=R9Q5ADKJ48T5QQDV38QS

 

[Lifelong_Learner]

I know you said you'll graduate debt free, but have you worked out a budget yet to see how much cash you'll have left over after school expenses?

That is a great question. It is really hard to tell, but it would not be more than $5,000 comfortably because my financial aid advisor cannot give me hard estimates several years ahead. I have done as many calculations as I can, but everything seems to be arbitrary.

 

[Lifelong_Learner]

Here are some books that I throughly enjoyed on investing. My bent is pretty clear on the question, but time and time again dollar cost averaging of index funds has been shown to outperform mutual funds and stock picking.

I greatly appreciate your thoroughness. It means a lot.

 

[libertyyne]

I greatly appreciate your thoroughness. It means a lot.

NP,
If you have free time these can also be useful just to see how basic valuations/ calculations of ROI etc are performed.
Introduction to Finance: Valuation and Investing | Coursera
Finance Theory I | Sloan School of Management | MIT OpenCourseWare

The second link was particularly good and engaging. Just something you can listen to in your free time if interested.

 

[trs88]

That is a great question. It is really hard to tell, but it would not be more than $5,000 comfortably because my financial aid advisor cannot give me hard estimates several years ahead. I have done as many calculations as I can, but everything seems to be arbitrary.

That's understandable. With something like this, I would suggest letting your money just "sit" for the first year in order to give yourself that year to see what your non medical school expenses look like - groceries, insurance, bills, etc and then plan from there. You can always add money later to investment type accounts or CDs but it's almost impossible to take the funds back* in case you have an emergency.

*without a ridiculous amount of fees and penalties.

 

[PugsAndHugs]

Crypto obviously. Get with the program $$$

 

[BunnyMan17]

I'd suggest putting at least 1000 in a emergency fund, you never know when one of your tires is going to the great garage in the sky. Then open a roth ira with vanguard and try to max that out every year (I understand this may or may not be practical on your budget). You can also look into solid dividend paying stocks (google dividend aristocrats).
Those things plus TSP are what I do and I was shocked how much it would all grow over time if I was consistent and started early.

 

[Entadus]

Surprised no one has mentioned TheWhiteCoastInvestor. Read his book or head to the website: New to the Blog? Start here | The White Coat Investor - Investing And Personal Finance for Doctors

 

[ncide]

There are some medical professions where you don't have to work as an employee, but as an employer. Having your own practices is much more profitable than working for someone else.

 

[arcus]

Hi all,

I have been thinking about this for such a long time, but I didn't know who to reach out to.

Background: I am a Kauffman Scholar, as well as an awardee of several other scholarships. Kauffman Scholars, Inc is a scholarship program built to give underprivileged urban Greater Kansas City youth an opportunity to strive for academic excellence through mentoring as well a scholarship valued up to 5 years of schooling. I am also in the six-year medical program at UMKC. Basically, I will graduate debt-free with my MD and a Bachelor of Arts fully funded by scholarships. (I have received cash scholarships directed to me that I am going to use for residency applications/interviews and USMLE fees). Words cannot describe how grateful I am. My question may seem naive, but I have had no formal nor family education in putting money to good use nor in understanding the financial burdens of being a doctor.

Questions: If you were in my position, what would you be putting your money towards? What financial knowledge should I invest time in learning about? Because I have been given this opportunity, it would be such a waste not to make the most of my providers' generosity.

Thank you so much,
GC

Easy

Identify your skillsets.
Identify the needs of your community (e.g. KC)
Marry your skillsets to a pressing need in KC you can address.
Formulate a plan how you can solve that pressing need
Find angel investors and convince them to bankroll your plan
Hire an attorney to establish an LLC.
Launch

Thats the basic schema but you get the idea.

There are some medical professions where you don't have to work as an employee, but as an employer. Having your own practices is much more profitable than working for someone else.

Yup. It is all about having drive. It is baffling how many medical students pine to be hired when they possess the most lucrative and maleable degree in the world. Its like giving away your diamonds to someone and hoping they give you a lump of coal. Crazy

 

[Snoopy2006]

Yup. It is all about having drive. It is baffling how many medical students pine to be hired when they possess the most lucrative and maleable degree in the world. Its like giving away your diamonds to someone and hoping they give you a lump of coal. Crazy

Not baffling at all. I tend to be more self-driven and will likely start my own practice, but I completely understand why others want to avoid it. In the last couple years I've had a number of close friends start up their own solo or small group practices - the sheer amount of headaches they had to deal with to get their practices off the ground was incredible. Many intelligent people would trade profit/control for a better work/life balance, less stress, and to avoid the headaches that come with administrative responsibility. It's a very reasonable point of view.

 

[evilbooyaa]

How are we 15 posts in and nobody has said "hookers and blow"?

Disappointed in you, SDN.

 

[libertyyne]

How are we 15 posts in and nobody has said "hookers and blow"?

Disappointed in you, SDN.

 

[Chelsea FC]

Hi all,

I have been thinking about this for such a long time, but I didn't know who to reach out to.

Background: I am a Kauffman Scholar, as well as an awardee of several other scholarships. Kauffman Scholars, Inc is a scholarship program built to give underprivileged urban Greater Kansas City youth an opportunity to strive for academic excellence through mentoring as well a scholarship valued up to 5 years of schooling. I am also in the six-year medical program at UMKC. Basically, I will graduate debt-free with my MD and a Bachelor of Arts fully funded by scholarships. (I have received cash scholarships directed to me that I am going to use for residency applications/interviews and USMLE fees). Words cannot describe how grateful I am. My question may seem naive, but I have had no formal nor family education in putting money to good use nor in understanding the financial burdens of being a doctor.

Questions: If you were in my position, what would you be putting your money towards? What financial knowledge should I invest time in learning about? Because I have been given this opportunity, it would be such a waste not to make the most of my providers' generosity.

Thank you so much,
GC

are you single ?? wouldnt mind having someone to share in my debt who is untainted ha hah a

 

[arcus]

Many intelligent people would trade profit/control for a better work/life balance, less stress, and to avoid the headaches that come with administrative responsibility. It's a very reasonable point of view.

I think it was Dr Conrad Fischer in one of those Kaplan Step 1 videos we all purchased (snort) where he said college students who did poorly in mathematics went on to pursue medical school. Math and finance scare the bejesus out of physicians

How are we 15 posts in and nobody has said "hookers and blow"?

because blow is not what it used to be in the days of Tubbs & Crocket and fentanyl has more bang for their hit.

 

[Kgizzle]

Bruh... White Coat Investor, great book for people in our position. It gives you the basics and allows you to learn how to do everything without putting in a lot of effort. Plus it gives you enough to not be preyed upon people who will key in on that MD/DO target on your back

 

[hecksflakes]

Read some good investment books, research and consult real business owners...sit, relax, ruminate over what you have learnt then chose for yourself. You know yourself best after all.

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[Lifelong_Learner]

Bruh... White Coat Investor, great book for people in our position. It gives you the basics and allows you to learn how to do everything without putting in a lot of effort. Plus it gives you enough to not be preyed upon people who will key in on that MD/DO target on your back

I have read the white coat investor, more like listened to it while driving and such. I'll look over the material again. I do love his content.

 

[napoleondynamite]

Bruh... White Coat Investor, great book for people in our position. It gives you the basics and allows you to learn how to do everything without putting in a lot of effort. Plus it gives you enough to not be preyed upon people who will key in on that MD/DO target on your back

THIS!

Fire your financial advisor! Open a Vanguard account and do your own low-risk investing.

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