Issue link: http://viewer.e-digitaledition.com/i/861948
1 8 FINANCES and YOUR HEALTH BY STEVE BARRETT MISMANAGED FINANCES OR UNRE ALISTIC INCOME E XPECTATIONS CAN AFFECT NOT ONLY A PHYSICIAN'S BOT TOM LINE BUT HIS OR HER HE ALTH AS WELL. PHYSICIANS, RESIDENTS AND medical students who seek help from Physician Hea lth Ser vices (PHS) — founded by t he Ma ssachuset ts Medica l Societ y (MMS) to dea l with substa nce abuse, ment a l hea lt h i s s ue s a nd phy sic a l hea lth concerns — often are experienc- ing significant financia l troubles, Steve Adelman, MD, PHS Director, writes on the MMS website. Here are a few of the difficulties PHS reg ula rly addresses a mong clinicia ns who en l i s t t he nonpr of it c or p or a- tion's help: They prioritize money rather than a passion for medicine. Providers struggle if their career paths don't feed their souls as well as their bank accounts. They have too much student debt. Seeking positions that help physicians repay their loans is one way to avoid this trap. They fail to count the personal cost of the quest for higher earnings. Family life in particular can suff er when a bigger payday becomes an all-consum- ing objective. They do not a ck nowledge that something could short circuit their careers. For exa mple, serious medi- ca l problems ca n strike a nyone. That ma kes a dequat e i n su ra nce cr it ica l for physicia ns. n CORE ALTHOUGH NEWLY MINTED PHYSICIANS MAY NOT LIVE IN OLIVER TWIST-LEVEL DESTITUTION, THE COMBINATION OF A SCARY STUDENT DEBT LOAD AND A LACK OF SAVINGS PUTS THEM AT A DISADVANTAGE WHEN SEEKING TO BUY THEIR FIRST HOME. BY STEVE BARRETT LEVERAGING EARNING POTENTIAL HOW E V ER, THE Y HAV E sig nif ica nt earning potential, which has spawned mor t ga ge loa n s gea red t o recent ly graduated physicians and residents. Here are some of the benefi ts of such loans, as outlined by Physician's Money Digest and The White Coat Investor: + Lenders may not factor in student debt at all when they consider you for a loan, or they may make your debt load less weighty in those considerations. + It is OK if you do not yet have pay stubs from your new position. The lender will rely on your employment contract in facilitating the purchase, enabling you to buy the home as much as two months before you begin working. + Down payments are often 5 percent or less — and in some cases nothing. + Physician loans typically waive private mor tgage insura nce requirements even if you cannot make a 20 percent down payment. These loa ns a re not on ly for new physicians. The White Coat Investor notes some lenders make physician loans available for second homes or to physicians in later stages of their careers. n FOR HOME PURCHASES