Congratulations on becoming a new attending. To jump-start your career, you'll find innovative ways to save on student loan payments, protect yourself with essential insurance products and supercharge your retirement savings. Let's start with the fact that 81% of physicians in their 30s are still paying back student loans, according to a recent report by the American Medical Association (AMA).
How to save $36,000
Refinancing from government to private lender is a modern way to tackle loans. Using the average debt of about $180,000 as an example, this will save you $36,000. That is basically the cost of a new luxury car. What’s the catch? Employment and income shouldn’t be too difficult for most physicians. Having a good credit score and minimizing other debt could be more challenging when you start applying.
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Research main lenders like SoFi, DRB, LinkCapital, CommonBond, LendKey and Citizens Bank online. Watch those 6.8% rates melt into 2-3%. The more money you owe, the more you’ll save once you refinance. A good rule of thumb is to use the variable option (over a fixed loan) especially if the loan is less than 10 years, since variable rates are lower than fixed rates.
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How to protect $5 million or more
If you work a 25-year career as a family practitioner, internist or cardiologist, the projected earnings are $5.2 million, $5.6 million and $10.2 million respectively. However, you’ve seen enough patients to realize bad things happen to good people at any age and no one can predict the future. Luckily, there are three types of insurance to protect the most valuable financial asset you have—your future income potential.