3 Financial Decisions to Make as a Resident
Residents are very busy people, and most have very little time to focus on anything else but getting through their residency programs and staying sane. I know that they have precious little time that could be considered “free” and they certainly don’t want to spend it dealing with financial decisions, but there are a few that shouldn’t be ignored while in residency.
Disability Insurance-Residents and those just starting out in their careers typically aren’t making up to their full potential salaries and have the majority of their years ahead of them. That means their lives need to be funded by their salaries or their disability insurance, especially as student loans won’t be forgiven if you declare bankruptcy. Getting disability insurance while a resident means it will be a bit cheaper as they tend to be younger and healthy, and won’t be classed into the same designations as what they will go on to specialize in. There is also a future purchase option rider that will allow you to increase the amount of coverage as your salary increases. Low Load Insurance Services https://llis.com/ also provides disability insurance, but shop around if you’re not not getting an option that makes you comfortable.
Life Insurance-If you have a spouse or children or a family member that depends on your income, life insurance is a must. Obviously every situation is different, but for residents I recommend Low Load Insurance Services https://llis.com/ and exploring the different options to make sure you have enough coverage.
Roth IRA-Residents are typically in a low tax bracket and will be spending the rest of their careers in a much higher one, so taking advantage of a Roth IRA now is very important. Not only does it allow you to take advantage of a tax-advantaged space, but builds good habits such as saving as well as starting the process of automating their finances. Starting retirement savings early makes it far easier for people to reach their overall retirement goals.
Please reach out if you have questions about these items or any other issues facing you as you begin your career.
