Being a doctor has many challenges. This includes learning to adjust to a practice setting after medical school and having to make important decisions in your life and career. It is easy to get side-tracked and ignore your own financial security. However, as a doctor in boston ma there are steps you can take for physician financial planning to protect yourself and your family.

The first financial challenge that doctors will face is a high level of student debt. Medical school can take many years to complete after your undergraduate degree. If you choose to specialize as a cardiologist or a pediatrician, for example, you will have to undergo additional training to do this. The total cost of a medical education can easily accumulate to nearly $200,000 by the time you are finished. Many students often cannot finance this alone and must borrow very heavily to pay for it.

Unfortunately, concentrating on these things can lead physicians to neglect saving and investing. This can delay them from retiring early or doing other things they would like to do, such as teaching part-time or joining a mission group abroad. By not contributing to tax-deferred savings schemes early on, they could be missing out on thousands of dollars of lost money and compound interest. This often means they will have to work longer to accumulate enough funds for their retirement.

Try to get as many scholarships and bursaries as you can to finance your education. This will reduce the amount you have to borrow. You might want to try searching for medical or public health scholarships through your local hospital that may offer this for aspiring doctors. Keep your grade point average high so that you can qualify for these scholarships.

Once you finish medical school and your residency, you can start making really good money. If you are starting your practice with lots of student debt, you will have to decide how quickly you want to pay that off. This will depend on the interest rate on the debt compared to the savings rates on other investments.

Aside from having savings and investments, you should also purchase life insurance. It is important to have life insurance if you are supporting a spouse and children, so that if anything happens to you, they will not be left penniless without your income. Most advisors recommend purchasing a policy that is ten times your annual income. You can normally buy a twenty year term insurance policy for this coverage.

Once your loans are paid down, you can divert that money into savings. Find out if your practice or organization offers a retirement plan such as a 401(k) or profit-sharing plan. With contributions from your employer, you can save even faster.

You should also consider setting up an automatic investment plan so that you do not have to think about it every month. Many people choose tax-efficient investment vehicles such as the 401(k) or Roth IRA. Remember to pay attention to the fees on your investments, as some fund managers charge high maintenance fees that eat into your investment returns.

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