GP going ortho, how to approach residency tuition

[mouthmechanic258]

---

Members don't see this ad.

As I prepare to start my two-year orthodontic residency this summer, I find myself facing a big financial question: How should I manage my money during this time? I have high student loans from dental school and am currently on the SAVE plan. However, after working as a GP for about 2yrs I’ve saved enough to cover my tuition for the program and a significant portion of COL. Now, I’m trying to figure out the best financial strategy moving forward. For reference, tuition is ~40k

My initial thought was use my savings to pay tuition and moonlight Saturdays to cover COL. The caveat is I would likely deplete all of my savings and with the economy up in the air having some cash on hand would be a nice safety net.

For those who have been through a similar situation—how did you navigate it? Any advice on loan management, budgeting, or financial planning would be greatly appreciated!

 

[charlestweed]

Congratulations on the acceptance! It's good that it's only a 2 yr program and not a more expensive 3 yr one. Since you are willing to moonlight on Saturdays now, you should continue to do so (working 6 days a wk) after graduation so you can replenish your depleted saving as fast as you can. Also, when you work harder.....and tx more complicated cases, you will become a better and faster clinician.

The key is to spend less...... live on less than what you make. Find a roommate to share a room/apartment with. Don't eat out too often. There will be a lot of meetings (AAO, GORP, CE classes etc) that require you to travel and to pay for the hotel rooms during your residency. They are fun to attend but you should try avoid to attend some of these events to save money. I remember there was an optional 1-wk Tweed wire bending course that my program director recommended all the residents to attend. I chose not to attend to save money.

 

[mouthmechanic258]

Thank you for your advice! I’m currently working 4days/ week and going to shift to 5days/week with 2 Saturdays a month to earn as much as I can before I start my residency in July. I currently live with my gf, who is also a dentist so we split things pretty evenly which has allowed me to save the money that I have now.

Moonlighting, if possible, would be huge in giving me some breathing room.

What do you think about taking out loans for residency and using my savings to buy a home towards the end of residency instead? I’m in my early-mid 30s so conflicted on this and a colleague of mine proposed this idea.

 

[niko472]

While it’s great you’ve saved enough to pay for tuition, I’d recommend taking out loans just so you’re not stressed about money. You don’t want to deplete your savings now because you don’t know what will come after residency. It will give you more flexibility towards the end to do whatever - buy a house, practice, pay off the loans, etc. Who knows what the economy will look like in two years also.

 

[gryffindor]

Talk to an accountant. You are in that unique situation where your tuition is going to be deductible on your taxes if you moonlight.

I would not buy a house right away after residency. Try to find a good opportunity to buy a retiring doctor. Harder than it sounds. Then buy your house based on where you settle.

Attend all the meetings your program allows. I went to the Tweed course that charlestweed apparently skipped. It was a very interesting 10 days in Tucson, AZ learning all about wire bending with colleagues around the world. All the ortho meetings I attended as a resident were a lot of fun and educational. Now in the thick of things between a practice and young kids, I miss those carefree times attending meetings around the country.

 

[kamsartipi]

As I prepare to start my two-year orthodontic residency this summer, I find myself facing a big financial question: How should I manage my money during this time? I have high student loans from dental school and am currently on the SAVE plan. However, after working as a GP for about 2yrs I’ve saved enough to cover my tuition for the program and a significant portion of COL. Now, I’m trying to figure out the best financial strategy moving forward. For reference, tuition is ~40k

My initial thought was use my savings to pay tuition and moonlight Saturdays to cover COL. The caveat is I would likely deplete all of my savings and with the economy up in the air having some cash on hand would be a nice safety net.

For those who have been through a similar situation—how did you navigate it? Any advice on loan management, budgeting, or financial planning would be greatly appreciated!

hey can I dm you about ur stats?

 

[gryffindor]

I dont believe tuition is tax deductible as we are pursuing essentially a different career/title. Im an endo resident paying tuition out of pocket and couldnt write it off despite being a 1099

Tuition is tax deductible if you practiced first as a GP after graduation. The OP is in this situation so attending residency is furthering their dental skills. There is precedent for this, I wouldn't be posting this if I wasn't sure about it. However consult an accountant because tax regulations change over the years and I haven't kept up with this one.

 

[niko472]

Tuition is tax deductible if you practiced first as a GP after graduation. The OP is in this situation so attending residency is furthering their dental skills. There is precedent for this, I wouldn't be posting this if I wasn't sure about it. However consult an accountant because tax regulations change over the years and I haven't kept up with this one.

Does this mean interview expenses are tax deductible if you’re practicing as a GP?

 

[gryffindor]

Does this mean interview expenses are tax deductible if you’re practicing as a GP?

Consult an accountant. The IRS discussion of this starts on page 58 of this document:

https://www.irs.gov/pub/irs-pdf/p970.pdf