Broker Check

5 Tips for Graduating Residents

June 17, 2020

Transitioning out of residency? Here are five things to consider for this next phase:


#1 Cash is King - You have been used to getting paid every month like clockwork but your new job might not start in July or could be based on collections that take a couple months to process or worse credentialing could delay your start date. An adequate cash reserve will help bridge this gap.


#2 Make sure your disability insurance is adequate - Your ability to produce income is probably your largest asset and residency is probably your last chance to qualify for any sort of discount. Talk to a qualified advisor about protecting the income you train so hard for.

#3 Consider converting retirement plans from residency to a Roth IRA. This year will likely be your lowest income tax year going forward and so paying some tax on additional income from the conversion this year and having future growth be tax free could be beneficial.


#4 Develop a student loan strategy - Lay out a timeline for repayment whether it be through public service loan forgiveness, refinancing, or just making additional payments on existing loans.


#5 Sign up for your new employer benefits - After your initial orientation, typically you will be presented with a range of choices such as contributing to a retirement plan and electing whether those are pre-tax or Roth contributions. You also need to select how those contributions are invested. Lastly there will be options for insurance and so get help in determining whether to purchase additional coverage through your employer or go to the outside marketplace and obtain at a better price