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Just want to ask residents and attendings, do you have investment? Do you invest whatever in you earn in something else, like stock, foreign currency, gold...etc? Just wonder how many people do that?
Do you have investment?
- Thread starter watermen
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I'd start out by asking why nearly all of your posts are somehow financially related, but my mother told me it was rude to talk about money.
I think you'll find most residents, especially those who are single or supporting a family, have little discretionary income to be able to invest. After housing, transportation, insurance, food, etc. there may be a little left over for the 401K or other type of savings, but you ain't gonna find any residents playing the foreign markets.
I'm sure some attendings have some money invested, but most of them here are pretty junior, and are still in the paying off student loans phase, IMHO.
I think you'll find most residents, especially those who are single or supporting a family, have little discretionary income to be able to invest. After housing, transportation, insurance, food, etc. there may be a little left over for the 401K or other type of savings, but you ain't gonna find any residents playing the foreign markets.
I'm sure some attendings have some money invested, but most of them here are pretty junior, and are still in the paying off student loans phase, IMHO.
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Just about all I've worked with do all their banking in offshore accouts, too. Swiss banks seem to be the gold standard where I'm at, but usually only plastics and ortho attendings have enough discretionary income to keep their funds there.
Frankly, if you're a resident and you're NOT heavily invested in foreign markets, you're making a big mistake.
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Because I know I cannot ask in real life...so I will ask people here.
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You know...I kinda agree with him on this one.
Who do we ask?
I wouldnt feel right about asking my attendings their salaries or investment strategies. There are numerous people out there looking to make money off of us and NOT for us.
Lets face the facts...most of us here will be in very nice financial situations someday and it would be nice to feel secure in that.
Just earlier today I was wondering about the negotiation process for salaries. I have no idea what some of my attendings make...some of them I was told, but its 3rd hand knowledge.
How do I know what to ask for?
When should I start maxing out the 401K?
What else can I do to secure myself financially?
What sort of bonuses and incentives are typical with different practice settings?
Some of these questions can be answered as general financial questions, BUT some of them are specific to our little niche in the world. For those specific questions its nice to talk amongst peers anonymously (not for all of us) and get answers and help avoid pitfalls.
I can read Greenfield or Sabiston...or ask my attending/resident about the medical stuff. But this should be an open forum for any questions regarding the practice of surgery...and sometimes that practice includes how to get paid.
Not trying to ruffle any feathers, just my $0.02 🙂
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To the OP,
You really can't afford not to invest in my opinion. A commonly held misconception is that rich people invest. I think it's better to look at it as poor people invest to become rich. Investing should be up there with other priorities like your living arrangements, your entertainment, and your travel. If that means living in a place that is a little more run down but is $200 a month cheaper, then you do that.
In my opinion, residents should be maxing out as much of their 401K as possible. Hospitals seem to provide good matches for 401Ks, and if you don't utilize that benefit you're essentially throwing money down the drain. How many other types of investments are you guarenteed an immediate 50-100% return? If you don't have a 401K program or you max it out, then you should immediately start shoving money in a Roth IRA. Residents are in a low tax bracket, and you will most likely be in a high tax bracket upon retirement, so the tax free growth is golden. However, you need to use the roth as much as you can during residency because once you get out your income will prevent you from utilizing Roths (income max of something like $130,000/year).
I'm a med student and I have money that is being traded in foreign currency exchange (ForEx). Last month it brought me 5.5% (66% annualized). Don't look to peers as examples for handling money. Doing things the way most people do them is a surefire way to be average in net worth, and aggresively investing (in amount, not neccessarily in strategy) is a surefire way of becoming wealthy.
You really can't afford not to invest in my opinion. A commonly held misconception is that rich people invest. I think it's better to look at it as poor people invest to become rich. Investing should be up there with other priorities like your living arrangements, your entertainment, and your travel. If that means living in a place that is a little more run down but is $200 a month cheaper, then you do that.
In my opinion, residents should be maxing out as much of their 401K as possible. Hospitals seem to provide good matches for 401Ks, and if you don't utilize that benefit you're essentially throwing money down the drain. How many other types of investments are you guarenteed an immediate 50-100% return? If you don't have a 401K program or you max it out, then you should immediately start shoving money in a Roth IRA. Residents are in a low tax bracket, and you will most likely be in a high tax bracket upon retirement, so the tax free growth is golden. However, you need to use the roth as much as you can during residency because once you get out your income will prevent you from utilizing Roths (income max of something like $130,000/year).
I'm a med student and I have money that is being traded in foreign currency exchange (ForEx). Last month it brought me 5.5% (66% annualized). Don't look to peers as examples for handling money. Doing things the way most people do them is a surefire way to be average in net worth, and aggresively investing (in amount, not neccessarily in strategy) is a surefire way of becoming wealthy.
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To JP Hazelton
Start by reading
Kiplingers magazine
The Millionaire Next Door and sequels
Medical Economics (memag.com)
My contrarian view is that residents generally don't gain much by investing in a 401K or Roth. That is counter to everything you will ever read, but the things you read are assuming most people get a job at age 22 and have a relatively steady income over the next 45 years. Almost no profession other than medcine has a low income for 3-10 years then a predicatable and secure 3-10X increase in income for the next three decades.
The marginal utility of $100 during residency is much greater than $1000 when you retire. Spend your money during residency, save when you're an attending. (I apply the same logic to paying down student loans during residency.)
As for longer term financial planning, you can get advice from attendings without getting numbers. The dynamic changes substantially when you're a 4 or 5 rather than an intern as well. And the biggest piece of advice is to hire experts to help you. When you move to Nebraska, hire a Nebraska attorney with medical experience to help negotiate your contract. When you finally have money to invest, hire a financial planner who gets no commisions, ets.
Start by reading
Kiplingers magazine
The Millionaire Next Door and sequels
Medical Economics (memag.com)
My contrarian view is that residents generally don't gain much by investing in a 401K or Roth. That is counter to everything you will ever read, but the things you read are assuming most people get a job at age 22 and have a relatively steady income over the next 45 years. Almost no profession other than medcine has a low income for 3-10 years then a predicatable and secure 3-10X increase in income for the next three decades.
The marginal utility of $100 during residency is much greater than $1000 when you retire. Spend your money during residency, save when you're an attending. (I apply the same logic to paying down student loans during residency.)
As for longer term financial planning, you can get advice from attendings without getting numbers. The dynamic changes substantially when you're a 4 or 5 rather than an intern as well. And the biggest piece of advice is to hire experts to help you. When you move to Nebraska, hire a Nebraska attorney with medical experience to help negotiate your contract. When you finally have money to invest, hire a financial planner who gets no commisions, ets.
B
Blade28
Just $333/month in a Roth IRA.
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I'm an MS4, I mainly invest in the Shanghai Stock Exchange and a few domestic stocks. That being said, I would be very cautious into what you put money into. I tend to do what highly experienced and qualified investor friends of mine do - and so far it's paid off well even in the last 6 months.
I would talk to a financial counselor or if you have friends/family who have been very successful with money management.
I would talk to a financial counselor or if you have friends/family who have been very successful with money management.
