Locums heating up?

[southerndoc]

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If everyone stopped taking sub-$350 rates, then the market rates will go back up.

It makes absolutely no sense for me to pick up a locums shift or two when it's way lower than what I make now. In order for me to do locums, I would need to be jobless or it needs to pay more than what I make now (substantially more with travel expenses reimbursed).

 

[BoardingDoc]

Debt is bondage, and so many doctors are fools.

Disagree with the former (under specific circumstances). Agree with the latter.

There are a large number of docs on this forum who are vehemently opposed to debt in any form. Taking on debt for luxuries I agree is idiotic. That said, I currently have a LOT of debt which I'm very happy about, and am actively accruing more in places.

e.g. I just took 10k out in debt and dumped it into i-bonds. I certainly have the cash to do so, but it's currently being used elsewhere and I'm paying 2.5% interest on that 10k in exchange for guaranteed 9.62% return. I will happily take on debt for the sake of arbitrage (and select other opportunities).

That said, debt without the means of immediately closing said debt is certainly bondage. I could pay off all of my loans tomorrow, but that money is better allocated elsewhere.

 

[miacomet]

Disagree with the former (under specific circumstances). Agree with the latter.

There are a large number of docs on this forum who are vehemently opposed to debt in any form. Taking on debt for luxuries I agree is idiotic. That said, I currently have a LOT of debt which I'm very happy about, and am actively accruing more in places.

e.g. I just took 10k out in debt and dumped it into i-bonds. I certainly have the cash to do so, but it's currently being used elsewhere and I'm paying 2.5% interest on that 10k in exchange for guaranteed 9.62% return. I will happily take on debt for the sake of arbitrage (and select other opportunities).

That said, debt without the means of immediately closing said debt is certainly bondage. I could pay off all of my loans tomorrow, but that money is better allocated elsewhere.

Sure, that makes sense, absolutely.
People do not know how to use debt constructively, and also love to live paycheck to paycheck.

 

[emergentmd]

If everyone stopped taking sub-$350 rates, then the market rates will go back up.

Sure but you know that will never happen. That is like saying, the pool cleaner should not take anything under $500/clean so rates will go up.

That may happen for a few months/years in EM case, but eventually More EM residencies will go up, AMGs will flood the market followed by IMG candidates and rates will plummet.

Most EM docs, right or wrong, are happy working in most jobs for $200/hr. Not everyone is in our position to shun $350/hr b/c we have better options. Most do not.

 

[emergentmd]

Disagree with the former (under specific circumstances). Agree with the latter.

There are a large number of docs on this forum who are vehemently opposed to debt in any form. Taking on debt for luxuries I agree is idiotic. That said, I currently have a LOT of debt which I'm very happy about, and am actively accruing more in places.

e.g. I just took 10k out in debt and dumped it into i-bonds. I certainly have the cash to do so, but it's currently being used elsewhere and I'm paying 2.5% interest on that 10k in exchange for guaranteed 9.62% return. I will happily take on debt for the sake of arbitrage (and select other opportunities).

That said, debt without the means of immediately closing said debt is certainly bondage. I could pay off all of my loans tomorrow, but that money is better allocated elsewhere.

Very true, debt is bondage if you are upside down on equity and need a job to fund the payments.

I would be glad to take anyone's money at 3% at almost any amount right now. If you can not get a 3+ return on your money, then you are doing something wrong.

 

[WilcoWorld]

Disagree with the former (under specific circumstances). Agree with the latter.

There are a large number of docs on this forum who are vehemently opposed to debt in any form. Taking on debt for luxuries I agree is idiotic. That said, I currently have a LOT of debt which I'm very happy about, and am actively accruing more in places.

e.g. I just took 10k out in debt and dumped it into i-bonds. I certainly have the cash to do so, but it's currently being used elsewhere and I'm paying 2.5% interest on that 10k in exchange for guaranteed 9.62% return. I will happily take on debt for the sake of arbitrage (and select other opportunities).

That said, debt without the means of immediately closing said debt is certainly bondage. I could pay off all of my loans tomorrow, but that money is better allocated elsewhere.

Debt and a high cost of living share something though - they both come knocking every month.
That said, your math checks out. I think what makes it sustainable is that you could choose to not be in debt if the situation changed.

 

[forchinet121]

Disagree with the former (under specific circumstances). Agree with the latter.

There are a large number of docs on this forum who are vehemently opposed to debt in any form. Taking on debt for luxuries I agree is idiotic. That said, I currently have a LOT of debt which I'm very happy about, and am actively accruing more in places.

e.g. I just took 10k out in debt and dumped it into i-bonds. I certainly have the cash to do so, but it's currently being used elsewhere and I'm paying 2.5% interest on that 10k in exchange for guaranteed 9.62% return. I will happily take on debt for the sake of arbitrage (and select other opportunities).

That said, debt without the means of immediately closing said debt is certainly bondage. I could pay off all of my loans tomorrow, but that money is better allocated elsewhere.

You mention you have a LOT of debt, how much do you mean? You’re in debt millions?

 

[Groove]

I just can’t wrap my brain around debt/leverage to artificially inflate my net worth. That’s prob why I’ll die poorer than all the other finance gurus in here. I’d never be ok in debt to my eyeballs and if I suddenly died 75% of my net worth is automatically sold at the lowest bid to pay off my debt with what little remains left to my loved ones.

I think that’s why I’ll never be a real estate guru and probably to my own fault. Even with my brokerage accounts I try to keep leverage at a minimum.

I can’t stand debt.

 

[BoardingDoc]

.

You mention you have a LOT of debt, how much do you mean? You’re in debt millions?

Across all sources of debt? Yeah, over 1M. All at an interest rate between 0.99 - 3%. Total assets ~= 2-3x debt amount.

 

[GassYous]

.

Across all sources of debt? Yeah, over 1M. All at an interest rate between 0.99 - 3%. Total assets ~= 2-3x debt amount.

Damn that's basically free

 

[Rekt]

I just can’t wrap my brain around debt/leverage to artificially inflate my net worth. That’s prob why I’ll die poorer than all the other finance gurus in here. I’d never be ok in debt to my eyeballs and if I suddenly died 75% of my net worth is automatically sold at the lowest bid to pay off my debt with what little remains left to my loved ones.

I think that’s why I’ll never be a real estate guru and probably to my own fault. Even with my brokerage accounts I try to keep leverage at a minimum.

I can’t stand debt.

I feel there's a lot to be said about the feeling of being debt free. Id argue the massive stress reduction of being debt free is worth more than the trivial gains of debt leveraging.

 

[HemorrhagicShock]

Investing and making money off one's own money is as much a psychological game as it is a game of mathematics and numbers.

If your own personal psychology makes you that uncomfortable using debt, I'd argue it's great that you know that about yourself. Because a less mature person with that same proclivity would likely lose money, or make dumb decisions if they highly levered their net worth due to the anxiety of being in such a position long term.

 

[emergentmd]

I feel there's a lot to be said about the feeling of being debt free. Id argue the massive stress reduction of being debt free is worth more than the trivial gains of debt leveraging.

Debt free is more of a mental state of mind rather than a true economic reality.

People would look at me and be scared of how much debt I have - 2.6M

My homestead has 650K note @2.5%
My investment properties have around 2M including just taking on another 500K with avg note of 4%

But I consider myself debt free, even though technically I am high on debt. My business is debt free and my share is prob worth 3M. My home is worth about 2M. My properties about 6.5M and generate yearly profit.

I could sell my most valuable property and pay off all of my debt.

I am not scared of debt esp with rates that is essentially a free loan. I understand the aversion to debt but I look at it as a tool rather than a burden. If interest rates ever get under 3% again, I will be refinancing all of my properties and pulling out 3M to invest.

 

[Groove]

Debt free is more of a mental state of mind rather than a true economic reality.

People would look at me and be scared of how much debt I have - 2.6M

My homestead has 650K note @2.5%
My investment properties have around 2M including just taking on another 500K with avg note of 4%

But I consider myself debt free, even though technically I am high on debt. My business is debt free and my share is prob worth 3M. My home is worth about 2M. My properties about 6.5M and generate yearly profit.

I could sell my most valuable property and pay off all of my debt.

I am not scared of debt esp with rates that is essentially a free loan. I understand the aversion to debt but I look at it as a tool rather than a burden. If interest rates ever get under 3% again, I will be refinancing all of my properties and pulling out 3M to invest.

How much are you having to put down with your own money to get these loans? Do you use various lenders or your own bank?

 

[emergentmd]

How much are you having to put down with your own money to get these loans? Do you use various lenders or your own bank?

There is nothing special about these rates. My homestead was from a doctor's loan 10 yrs ago. The investment properties were mostly bought in the past 7 yrs and rates were hovering around the 4% mark.

You will rarely get anything better than putting down 30% with a Fannie/Freddie backed conventional loan. Mortgage loans have essentially been the government paying you interest to take a loan out when you account for all of the deductions+inflation( avg 3.8% past 60 yrs)