Financial Advice for “Low-Income” Doctors

One person’s “low-income” profession is another person’s “high-income” profession.  It’s all relative, of course.  But in medicine, there can be a pretty significant disparity in earnings when you look at the entire spectrum of doctors.

As with any other industry, some pull in a salary below the average or median pay for a group. Do the same financial tenets and nuggets of advice apply to a doctor on the lower end of the range?

This post addresses the opposite issue—”low-income” doctors. The average physician these days makes around $275,000, and surveys show that the vast majority of doctors make somewhere in the $180,000-$450,000 range.

7 Financial Considerations for the “Low-Income” Physician

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I don’t feel bad for doctors who have a relatively low income. I know you can have a pretty great life on $150,000 a year because I’ve done it. The ones I feel bad for are those with a high student loan burden.

#1 Student Loan Issues

Pediatricians look at hospitalists enviously, family doctors look at emergency doctors enviously, emergency docs look enviously at ophthalmologist salaries, and ophthalmologists covet the boats of back surgeons.

#2 You’re Not a Back Surgeon, and That’s OK

There will always be someone who makes more and has more than you. If you would instead spend your time looking at the 99.9% of those who have ever lived who make LESS than you, you would probably be a lot happier.

Doctors making $150,000 don’t need very many retirement accounts, and they may never need a taxable account at all. If they want to save 20% for retirement, they can get that out of a run-of-the-mill employer-provided 401(k) and a Roth IRA or two.

#3 Avoiding Portfolio Complexity

Disability insurance is really easy for a “low-income” physician. You can do it with a single policy. In fact, you may not ever need to do anything but exercise the FPO option on the one you bought in residency.

#4 Disability Insurance

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