By Chris Stoner, CFP®, Measured Wealth Private Client Group
1. Debt Reduction
As a result of your extensive medical education, you’ve likely incurred significant debt in the form of loans. The average medical school loan debt balance in the United States is approximately $190,000. Over a 30 year period at a 7% interest rate, this equates to a total cost of $455,048 and a $1,264 monthly payment, which can be a significant drag on your financial well being. While there is no easy solution, the best way to ease this burden is to simply allocate more per month to the loan that is owed. By increasing your monthly payment by just $200 from $1,264 to $1,464 you could reduce your loan duration by 10 years. Debt reduction is a critical step in attaining financial security and starting to build wealth.
Interesting infographic sent over to us by Cyndi Carver.
Image Credit: www.forrent.com
This list comes via Medical Economics and Doximity. We take no credit for the data or how it was collected. Please click their respective links to learn more.
According to Medical Economics:
"The Doximity study evaluated how many open physician positions were advertised on the company’s network in large U.S. metropolitan areas in 2016 and 2017. It found that physician job postings have grown significantly year-over-year in many of the largest metropolitan areas."
Doctor Loan, Physician Mortgage, Home loans for Doctors, 100% Doctor Mortgage, No Money down for Doctors…
They can be referred to by many names but they all have one thing in common: these special loans are out there specifically for doctors to buy homes. There are several banks that offer this mortgage and the common theme is little to no down payment and no mortgage insurance. These banks realized there was a need to create a product to assist new doctors that are fresh out of school because most of them are burdened with student loans and have no down payment. What the new doctors do have though is high income potential and very good job security so the odds of them defaulting on their mortgage are very low.
By Josh Mettle, Fairway Physician Home Loans
Down payment grants are currently available in conjunction with one of our physician home loan programs in Arizona, California, Colorado, Florida, Idaho, Illinois, Massachusetts, Minnesota, North Dakota, Nevada, Pennsylvania, Texas, and Wisconsin. Not all counties in each state are covered; please reach out to us for additional questions and program specifics.
Depending on the county in which you are buying, the down payment assistance equals between 3.5% and 7% of the loan amount. For example, if you buy a $300k home and your loan amount is $291k (less required down payment), your down payment assistance would be between $10,185 and $20,370 depending on the county you buy in.
Tax Reform and its Potential Impact on Housing
Disclaimer: This guide is not meant to be a resource for tax advice but instead a resource for basic information concerning only certain aspects of the new tax code and how they may impact the real estate market. You should get tax advice from your accountant or tax preparer who will explain how the entire tax code will affect your personal return. This information comes immediately after the new tax code became law. Some of the information may be revised as the analysis of the new law evolves.
Taxes are complicated and unfortunately Trump failed at simplifying the tax code such that we could file our taxes on a postcard (his initial goal). That would have been a massive win, but I believe the vast majority of Americans come out ahead with this new plan.
My goal here is to analyze the changes in broad strokes and analyze if the tax reform changes are positive or negative on housing prices (I also failed to fit this analysis on a postcard).
By Scott Nelson-Archer, CLU, ChFC
Last week we had a general surgeon call us about their skiing accident or semi skiing accident he had. The reality was he was getting off the gondola, walking to the slopes when he slipped on a piece of ice causing him to fall and catch his thumb on the edge of his ski. When he caught his thumb on the edge of the ski it caused a cut at the base of his thumb…his dominate thumb. To get to the point without more details he is having some real issues with nerve damage and is now unable to do surgery for the foreseeable future. So the question is “how will my disability policy work”?
By Doug Mitchell, CLU - Ogletree Financial Services, LLC
The dispute between those who advocate for permanent cash value life insurance and those who advocate for affordable but temporary term insurance is ongoing and continually hotly contested. Regretfully, what we typically end up with is a lot of heat but very little light. So, which is better when it comes to cash value life insurance versus term? It’s simply a doctor’s choice based on their circumstances.
How you choose depends on where you are in your practice and what risks need to be financially mitigated. Based on that, here are some recommendations when you attempt to make an informed decision.
This infographic and info courtesy of Cyndi Carver, Berkshire Hathaway
• The Federal Housing Finance Agency (FHFA) recently released their latest Quarterly Home Price Index report.
• In the report, home prices are compared both regionally and by state.
• Based on the latest numbers, if you plan on relocating to another state, waiting to move may end up costing you more!