SMDEPA national program supported by The Robert Wood Johnson Foundation with direction and technical assistance provided by

the Association of American Medical Colleges and the American Dental Education Association.

The SMDEP Alumni Financial Planning

Workshop:“You’re Still In

Charge”

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The Original Workshop’s Objectives

• Articulate your own goals

• Explain how financial planning helps achieve your goals

• Describe the benefits of borrowing wisely and the pitfalls of not borrowing wisely

• Understand how small decisions lead to big results

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My Future*

*Exercise created by and courtesy of Dr. Leon Johnson, Jr.

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A PERSONAL TIME LINE

YEAR AGE TARGET GOAL COST

1. 2008 ____ _________________________ $______

2. 2009 ____ _________________________ $______

3. 2010 ____ _________________________ $______

4. 2011 ____ _________________________ $______

5. 2012 ____ _________________________ $______

6. 2013 ____ _________________________ $______

7. 2014 ____ _________________________ $______

8. 2015 ____ _________________________ $______

9. 2016 ____ _________________________ $______

10. 2017 ____ _________________________ $______

11. 2018 ____ _________________________ $______

12. 2019 ____ _________________________ $______

13. 2020 ____ _________________________ $______

14. 2021 ____ _________________________ $______

15. 2022 ____ _________________________ $______

16. 2023 ____ _________________________ $______

17. 2024 ____ _________________________ $______

18. 2025 ____ _________________________ $______

19. 2026 ____ _________________________ $______

20. 2027 ____ _________________________ $______

21. 2028 ____ _________________________ $______

22. 2029 ____ _________________________ $______

23. 2030 ____ _________________________ $______

24. 2031 ____ _________________________ $______

25. 2032 ____ _________________________ $______

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Debt and Income

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Looking at Debt and Income

• Average debt at graduation:– Medical School $122,279

– Dental School $145,465

• The keys to managing your debt: – Be well informed about borrowing

– Choose your actions carefully

Sources: AAMC 2007 Medical School Graduation Questionnaire (average total educational debt); ADEA 2006 Survey of Dental School Seniors

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Debt Levels of Medical School Graduates, 2007

5.3%

12.6%

16.8%

7.8%

11.9%

14.7%

7.9%

6.0%

3.3%

13.7%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

Source: AAMC 2007 Medical School Graduation Questionnairehttp://www.aamc.org/data/gq/allschoolsreports/2007.pdf

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Debt Levels of Black, Native American*, and Hispanic/Latino Medical Graduates, 2007

16.8%16.8%

12.8%

4.7%

9.3%

14.1%13.7%

8.3%

3.7%

7.9%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

* Native American includes Native Americans and Native Alaskans.Source: AAMC 2007 Medical School Graduation Questionnaire, Non Program Evaluation R Table

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Debt Levels of Dental School Graduates, 2006

Source: ADEA 2006Survey of Dental School Seniors

2.7%10.3%

2.7% 5.3%4.1%

21.4%

53.5%

0%

10%

20%

30%

40%

50%

60%

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Debt Levels of Black, Native American, and Hispanic/Latino Dental Graduates, 2006

Source: ADEA 2006 Survey of Dental School Seniors

3.2%8.2%

3.7%7.4%

6.4%

24.5%

46.5%

0%5%

10%15%20%25%30%35%40%45%50%

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How ‘bout some good news for a change?

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Medical Residents & Practicing Physicians

Average 2006-2007 Medical Residency Stipend: $44,669*

Median Physician Compensation•All Primary Care

$171,159**•All Specialties

$322,259** Sources: *2007-2008 AAMC Survey of Housestaff Stipends, Benefits, and Funding (Autumn 2007 Report)**Medical Group Management Association (MGMA) Physician Compensation and Production Survey: 2007 Report Based on 2006 Data

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Dental Residents & Practicing Dentists

Dental Residency Stipends: • Vary from $0 to approximately what medical residents

earn • Some residency programs require trainees to pay a fee

Average Net Dentist Income*:

• All full-time in private practice

$204,500• Generalists

$186,080• Specialists

$317,560

*Source: Table 18: Net income from the Private Practice, Age, and Hours Worked for Solo Dentists by Hours Worked/Year, 2004. (ADA: 2005 Survey of Dental Practice)

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However!

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Average Education Indebtedness for Recent Medical School Graduates by Year

Source: AAMC 2007 Medical School Graduation Questionnaire

$80,331$70,000

$80,000

$90,000

$100,000

$110,000

$120,000

$130,000$122,279

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Average Education Indebtedness for Recent Dental School Graduates by Year

Source: American Dental Education Association

$80,000

$90,000

$100,000

$110,000

$120,000

$130,000

$140,000

$150,000

$160,000

$87,605

$156,810

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So, what’s that mean?

You got’ta be a lot more financially sophisticated than Doctors that

graduated years ago!

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PAYBACK TIME &

LOAN CONSOLIDATION

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Time table for a typical 2009 graduate’s student loan repayments

Loan % Grace Period 1st Pmt DueSub-Staf ~6 6 months ~ Jan 1, 2010 UnSub ~6 6 months ~ Jan 1, 2010

Perkins 5 9 months ~ April 1, 2010

HPSL 5 12 months ~ July 1, 2010

Inst 7 12 months ~ July 1, 2010

Consolidation none ~ July 1, 2009

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So, just how big is $100,000?

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Repayment Schedules for $100,000*

Repayment Period Monthly Payment Total Paid Interest Paid

10 years $1,110 $133,225 $33,225

20 years $716 $171,943 $71,943

30 years $600 $215,838 $115,838

*at a 6% interest rate; dollars are rounded

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Repayment Period Monthly Payment Total Paid Interest Paid

10 years $1,213 $145,594 $45,594

20 years $836 $200,746 $100,746

30 years $734 $264,154 $164,154

*at an 8% interest rate; dollars are rounded

Repayment Schedules for $100,000*

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How to Use a Half-Time Payment Plan

PaymentNumber

DueDate

BalanceDue

PaymentTotal

PrincipalDue

FinanceCharge

1. Jan. 1 $100,000.00 $836.44 (#1a) $169.74 $666.70

2. Feb. 1 99,830.26 836.44 170.94 (#1b) 665.50

3. March 1 99,659.32 836.44 (#2a) 172.04 664.40

4. April 1 99,487.28 836.44 173.24 (#2b) 663.20

5. May 1 99,314.04 836.44 (#3a) 174.34 662.10

6. June 1 99,139.70 836.44 175.54 (#3b) 660.90

7. July 1 98,964.16 836.44 (#4a) 176.64 659.80

8. August 1 98,787.52 836.44 177.84 (#4b) 658.60

9. Sept. 1 98,609.68 836.44 (#5a) 179.04 657.40

10. Oct. 1 98,430.64 836.44 180.24 (#5b) 656.20

The amortization schedule below breaks down the first 10 payments on a $100,000 loan taken on over a 20-year term(240) payments at an interest rate of 8%. The notations in parentheses show how to make half-time payments .

Published in New OD (a magazine for optometrists)Copyright © Lawrence H. McClure

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ALTERNATIVE REPAYMENT SCHEDULES FOR $100,000

TERM PMT/MO. % PAID $ PAID COMMENT10 Yrs. $1,213 $45,593 $145,593 Standard Pd.

20 Yrs. 836 100,744 200,744 Consolidation

20+ 1,007 50,538 150,538 Paid in 10 yrs.

30 Yrs. 734 164,157 264,157 Maximum

30+ 801 82,245 182,245 Paid in 15 yrs.

+ monthly pmts. Gradually increase throughout repayment period

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A Dirty Little Secret

“It’s too easy for you to borrow the max.”

Max Student Loan!Max Mortgage!

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The SMDEP Financial Planning Workshop

Secrets of Financial Success: Decisions that

Put You in Charge

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Secrets of Financial Success

Quotes from: The Automatic Millionaire: A Powerful One-Step Plan to Live and Finish Rich by David Bach, Broadway Books:NY, 2004

• “…human beings don’t want to be controlled. We want to be in control.”

• “The only way to get the financial future you want is to begin creating it now!”

• “The problem is not how much we earn…it’s how much we spend.”

• “Most of us don’t really think about how we spend our money—if we do, we often focus solely on the big ticket items while ignoring the small daily expenses that drain away our cash.”

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How a small Decision is Really a

BIG Decision• Designer Cup of Coffee: $4.25 a cup/day• Cost per month: ~$129.00• Cost per year: ~$1550• If you didn’t spend this amount every day and

saved it, you’d have:– ~$21,375 after 10 years– ~$60,030 after 20 years– ~$130,360 after 30 years

• *Based on www.bankrate.com “Simple Savings Calculator.” Assumes 6% annual interest rate compounded monthly and an initial beginning balance of $129. Dollars are rounded.

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Tips for Making BIG/small Decisions

• Buy a previously owned car

• Shop at consignment stores

• Buy groceries in bulk

• Watch for sales

• Avoid credit card debt (don’t use a credit card unless you can pay it off in full each month)

• Cut costs wherever reasonable

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Living on Less as a StudentConsider:

• Roommates• Location• Transportation options—Do I really need a

car?• Coupons• Cheap eats• Splurge conscientiously—and carefully

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Living Below Your Means (LBYM)• Approach student life with an LBYM* attitude

• Aim for living on 70% of what is available to you

• Put the other 30% in an interest-bearing savings account or money-market fund until needed—or reduce how much you borrow

• Pick up cost-saving tips from Motley Fool’s “Living Below Your Means” discussion board at:

www.fool.com

*Living Below Your Means and LBYM are trademarks of The Motley Fool, Inc.

(Registration is required to use the Web site. It’s free, although some of Motley Fool’s services are not free.)

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A Primer on Financial Planning

Back to the Basics Again!

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BASIC MONEY MANAGEMENT 101

• Checking

• Savings

• Credit Cards

• Insurance

• Investments– Mutual Funds

– Stocks & Bonds

– Real Estate

– Businesses

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CHECKING ACCOUNTS

• Go to a local - medium size bank

• Balance your account each month

• Obtain check protection– Line of Credit

– Attach to Savings Account

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SAVINGS ACCOUNTS

• Save to Spend Accounts• Save to Invest Accounts• Should attempt to accumulate 6 to 9 months of

living expenses• Little to No Risk

– Savings Accounts– Money Markets

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CREDIT CARDS

OK, How many of ya got ‘em &

How many have ya got?

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Credit Cards The Good Part

•Credit cards aren’t bad –credit-card debt is bad!

•Can carry instead of cash•Helps track spending•Covers emergencies•Can sometimes get monetary benefits--miles on an airline or a yearly cash-back bonus

•Only need one card

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Credit Cards -- The Hard Part

•Up to you to use them wisely

•Easy to live beyond your means

•Dangerous when used to supplement your income

•High interest rates

•Can end up ruining your credit rating

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The Basis for Credit Scoring*

• Past payment history

• Amount owed on credit that’s been extended

• Length of time credit has been established

• Search for and acquiring new credit

• Types of credit established

*For more information on credit scoring, go to: • www.myfico.com• www.bankrate.com

Your credit score is based on:

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• Apply for credit only when you need it

• Don’t charge indiscriminately

• Avoid maxing out on your credit limit

• Pay on time

• Inspect your credit report

Raising Your Credit Scores

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The higher your FICO® credit score, the lower your payments!

For example, on a $300,000 30-year, fixed-rate mortgage

FICO® score APR Monthly payment 760-850 5.617% $1,725 700-759 5.839% $1,768 660-699 6.123% $1,822 620-659 6.933% $1,982 580-619 9.312% $2,482 500-579 10.276% $2,694

Interest rates accurate as of May 19, 2008:

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Finding Your Credit History

Equifax Credit Information Services PO Box 740241 Atlanta, GA 30374-0241 (800) 685-1111 www.equifax.com

Experian 475 Anton Blvd. Costa Mesa, CA 92626

or

955 American Lane Schaumburg, IL 60173 (888) 397-3742 www.experian.com

Trans Union Corporation PO Box 2000

Chester, PA 19022 (800) 888-4213 www.transunion.com

• Full name (including Jr., Sr.)

• Complete addresses for the last 5 years, including zip codes

• Social Security number

• If married, spouse’s full name

• Year of birth

• Copy of driver’s license or current billing statement

Include the following information with your request:

To request a free copy of your credit report:

www.annualcreditreport.com

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• Errors happen a lot

• Errors can reduce your credit score

• Checking your credit history helps catch

identity theft

• Sources:– www.myfico.com– www.annualcreditreport.com– www.ftc.gov

Correcting Errors in YourCredit Scores and Dealing with

Identity Theft

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A Last Resort for Help with Your Credit Score

The National Foundation

for Credit Counseling

www.nfcc.org

1-800-388-2227

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Insurance Planning

• Health Insurance

• Disability Insurance

• Life Insurance– Term

– Whole

– Variable

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THE INVESTMENT PYRAMIDHigh Risk----------------------------

Real Estate

Stocks on Margin

Medium Risk---------------------Stocks

Bonds

Low Risk---------------------Savings Accounts

Money Markets

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MAXIMIZE TAX INCETIVES

• RETIREMENT ACCOUNTS– IRA’S– SEP’S– EMPLOYER RETIREMENT AND MATCHING

PROGRAMS

• STATE EDUCATIONAL SAVINGS ACCOUNTS

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THE IMPACT OF TAXES ON SAVINGS & INVESTMENTS

$2000 OF EARNINGS INVESTED

IN THREE DIFFERENT ACCOUNTS Pre-tax & TaxFree Post Tax & Tax Free Post Tax & Taxable

Net Annual Investment

$2,000 $1,320 $1,320 Year 1 $2,120 $1,399 $1,372 5 $11,951 $7,887 $7,427 10 $27,943 $18,443 $16,445 15 $49,345 $32,568 $27,396 20 $77,985 $51,470 $40,694 Annual Interest Rate = 6%

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Investing for Retirement-Life Stages-

• Starting Out 100% Equities

• Growing Families 90% Equities & 10% Fixed Income

• Sandwich Generation 80% Equities & 20% Fixed Income

• Empty Nesters 35% Equities, 35% Fixed Income & 10% Short Term Investments

• Retirees 45% Equities, 40% Fixed Income & 15% Short Term Investments

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What is the most powerful force in the Universe?

According to Albert Einstein

Compound Interest!

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The Power of Time & MoneyPost Grad Yrs Ben Larry

1 $2,5002 $2,500 $5,2003 $2,500 $8,1164 $2,500 $11,2655 $2,500 $14,6676 $2,500 $18,3407 $2,500 $22,3078 $2,500 $26,5929 $2,500 $31,219

10 $2,500 $36,21611 $39,114 $2,500 $2,50012 $42,243 $2,500 $5,20013 $45,622 $2,500 $8,11614 $49,272 $2,500 $11,26515 $53,214 $2,500 $14,66734 $229,655 $2,500 $166,91235 $248,027 $2,500 $182,765

total: $25,000 $62,500

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Start NOWBegin with. . .

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Budgeting

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10 - 20 - 70 Budget

10 - Sock away 10% of each paycheck in a retirement fund, preferably in before-tax dollars through an employee savings plan, such as 401(k) plan or 403 (b).

20 - Put 20% in a “save to spend” fund, preferably in a money market account.

70 - Deposit the remaining 70 percent in a checking account to use for your routine living expenses.

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Debt Management and

Good Record Keeping

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Educate Yourself

READ

READ

READ

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Personal Finance Resources: Books

The Millionaire Next Door: The Surprising Secrets of America’s Wealthy by Thomas J. Stanley and William D. Danko

The Wealthy Barber by David Chilton

The Richest Man in Babylon by George S. Clason

Making the Most of Your Money by Jane Bryant Quinn

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Personal and Professional Finance Resources: Magazines

Smart Money www.smartmoney.com

Money www.money.com

Kiplinger’s Personal Finance

www.kiplinger.com

Medical Economics www.memag.com

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www.morningstar.com Good articles on aspects of

mutual-fund investing

www.vanguard.com Teaches basics of mutual fund investing

and retirement planning

www.fidelity.comGood mix of education about mutual funds,

individual stocks and bonds, annuities, and insurance

Personal Finance Resources: Web Personal Finance Resources: Web SitesSites

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www.financenter.comBasic information on personal finance

(such as auto loans, home loans, insurance)

www.fool.comEducational, often humorous, look

at the world of investing

Web Sites (continued)

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Getting Help from Professionals

• www.therightadvisor.com• www.fpanet.org

Financial-Planning Web Sites

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Where to Get Help

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Your Financial Team• While In School

–Financial Aid Officer

• As a Post-Graduate–Financial planner–Accountant–Insurance Broker–Attorney–Banker

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THERE ARE TWO KINDS OF PEOPLE IN THIS WORLD

Spend

Save

Save

Spend

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Thanks for Coming&

Remember

You’re still in charge!

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Investment Glossary

• Balanced Fund: A mutual fund that invests in both stocks and bonds: usually with an unbalanced ratio of 60:40

• Bear Market: When stock prices generally fall as a whole. Bear markets are usually brought on by fears of declining economic opportunity

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Investment Glossary

• Blue Chip Stock: Dubbed after the blue chips in poker; the most valuable ones. These are shares in older, established companies, e.g., IBM, At&T, and GM. They have a long history of growth dividend distribution. The 30 Dow Jones Industrial Average are all blue chips.

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Investment Glossary

• Bond: A formal IOU (“certificate”) from a corporation, the U.S. Treasury or local governments to back a debt with interest at a specific time (“maturity date”). Unlike stockholders, bondholders own only the debt, not a share in the corporation.

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Investment Glossary

• Bull Market: When the price of stocks generally rises.

• Certificate of Deposit: Similar to a regular savings account, but they pay higher interest because the length and amount of deposit are locked in, from 14 days to several years. This is the most common type of money market instrument. CDS cashed in before matrity are subject to substantial penalties for early withdrawal.

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Investment Glossary

• Diversification: Reducing risk by investing in more than one type of security, such as stocks, bonds and money market devices. Mutual funds provide individuals with instant diversification by investing in many different securities

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Investment Glossary

• Dollar Cost Averaging: The strategy in which an investor buys the same dollar amount of a stock at regular intervals, regardless of the changing price of the stock. Since shares are bought at both high and low prices, this strategy averages those costs out over the long run.

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Investment Glossary

• Front-End Load: Up front commission fee (“or load”) investors pay when they buy shares in a fund. Loads are calculated as a percentage, such as 4 or 5% of the amount that an individual invests into a mutual fund. Investors pay this load to receive assistance in their investing from a registered representative.

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Investment Glossary

• Growth Stock: Shares, usually in small companies with potentially bright futures and fast growth.

• Income Stock: Shares of companies with a history of paying high dividends, but lacking fast growth. Utilitiy companies, such as gas and electric firms, with a constant customer base and income flow are some of the best known income stocks.

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Investment Glossary

• Money Market Account: Accounts opened at financial institutions where the money is invested into safe, short-term debt instruments, such as CDS and U.S. Treasury bills. They usually pay a higher return than regular savings accounts.

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Investment Glossary

• Mutual Fund: An investment company that pools money of individuals and invests it into stocks, bonds and other securities, under the guidance of a professional manager. A mutual fund offers shareholders the benefits of portfolio diversification: owning a wide set of shares to spread risk, gains, and losses.

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Investment Glossary

• Net Asset Value: The price of one share of a mutual fund, calculated by adding the toal investments in a fud, subtracting costs, and dividing by the total number of shares.

• No-Load Mutual Fund: A mutual fund that does not impose a sales charge, or load, when purchased. There may be a fee to withdraw your monies from the account.

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Investment Glossary

• Rate of Return: How much money you get back for your investment. For stocks, it’s the annual dividends divided by the purchase price. For bonds, it’s the acutal amount of interest earned.

• Stock: A security that represents partial ownership in a corporation. The value of a stock generally reflects the financial performance of a company

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Federal Direct Consolidation Loan Program

• http://loanconsolidation.ed.gov/• To qualify for a Direct Consolidation Loan, borrowers must have at least

one Direct Loan or Federal Family Education Loan (FFEL) that is in grace, repayment, deferment or default status. Loans that are in an in-school status cannot be included in a Direct Consolidation Loan.

• Borrowers can consolidate most defaulted education loans, if they make satisfactory repayment arrangements with the current loan holders or agree to repay their new Direct Consolidation Loan under the Income Contingent Repayment Plan.

• Borrowers who do not have Direct Loans may be eligible for a Direct Consolidation Loan if they include at least one FFEL Loan and have been unable to obtain a Federal Consolidation Loan with a FFEL consolidation lender or have been unable to obtain a Federal Consolidation Loan with income-sensitive repayment terms acceptable to them, or intend to apply for a loan cancellation under the Public Sector Cancellation Program.

• Borrowers who have only a Direct Consolidation Loan cannot consolidate

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Federal Direct Consolidation Loan Program• Standard Repayment Plan:• You will pay a fixed amount each month until your loan(s) are paid in full. Your monthly

payments will be at least $50 for up to 10 to 30 years, based on your total education indebtedness.

• Graduated Repayment Plan:• Your minimum payment amount will be at least equal to the amount of interest accrued

monthly. Your payments start out low, and then increase every two years for up to 10 to 30 years, based on your total education indebtedness

• Extended Repayment Plan:• To be eligible, your Direct Loan balance must be greater than $30,000 and you will have up

to 25 years to repay your loan(s). You have two payment options: • Fixed Monthly Payment Option -You will pay a fixed amount each month until your loans

are paid in full. Your monthly payments will be at least $50. • Graduated Monthly Payment Option - Your minimum payment amount will be at least $50

or the amount of interest accrued monthly, whichever is greater. Your payments start out low, and then increase every two years.

• Income Contingent Repayment Plan (ICR):• Monthly payments that are based on a borrower's annual income, Direct Loan balance and

family size, and are spread over a term of up to 25 years.

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Taxpayer Relief Act of 1997 and 2001

• Student Loan Interest Deduction– up to $2,500 deducted from your taxable income

• Lifetime Learning Credit– up to $2,000 credit against your federal income taxes for qualified

tuition and related expenses

For more information on tax credits and deductions go to:– www.irs.gov

Source: IRS Publication 970, 2004.

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Lifetime Learning Credit

• Income limits increased. The amount of your lifetime learning credit for 2008 is gradually reduced (phased out) if your modified adjusted gross income (MAGI) is between $47,000 and $57,000 ($94,000 and $114,000 if you file a joint return). You cannot claim a credit if your MAGI is $57,000 or more ($114,000 or more if you file a joint return).

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Student Loan Interest Deduction

Your student loan interest deduction for 2008 is generally the smaller of:

• $2,500, or

• The interest you paid in 2008.

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Student Loan Interest Deduction•

You may be able to deduct interest you pay on a qualified student loan. And, if your student loan is canceled, you may not have to include any amount in income.

• The deduction is claimed as an adjustment to income so you do not need to itemize your deductions on Schedule A Form 1040.

• You can claim the deduction if all of the following apply: • You paid interest on a qualified student loan in tax year 2008 • Your filing status is not married filing separately • Your modified adjusted gross income is less than $65,000 ($135,000 if filing jointly) • You and your spouse, if filing jointly, cannot be claimed as dependents on someone else's return • A qualified student loan is a loan you took out solely to pay qualified higher education expenses.

See the instructions for Form 1040 to determine if your expenses qualify. • If you file a Form 2555, Form 2555EZ or Form 4563, use Publication 970 instead of the

worksheet in the Form 1040 Instructions. • The deduction will start to phase out when the modified AGI exceeds certain amounts. To

determine when the deduction is phased out, please refer to Publication 970, Tax Benefits for Education. If you paid $600 or more of interest on a qualified student loan during the year, you will receive a Form 1098-E (PDF), Student Loan Interest Statement, from the entity to which you paid the student loan interest.

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Retirement Planning

• There are several different plans that individual and corporations may utilize to invest monies for future retirement needs. Here is a brief description of some and the available maximum contribution to each

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Retirement Planning

• Keogh Plan: This plan is for self-employed individuals and the maximum contribution in any given tax year is $30,000. Money is contributed on a pre-tax basis.

• SEP-IRA: This plan is also for self-employed individuals and the maximum contribution in any given year is the lesser of 15% of income or $22,000. Money is contributed on a pre-tax basis.

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Retirement Planning

• Traditional IRA: This plan is for individuals without a corporate sponsored retirement plan, but are considered employees. The maximum contribution is $3,000 in any given tax year. Money is contributed on a pre-tax basis.

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Retirement Planning

• Roth IRA: This plan for individuals that may or may not possess a corporate sponsored retirement plan. The maximum contribution is $3,000 in any given tax year. Money is contributed on an after tax basis.

• 401(K): This retirement plan is employer sponsored. It will allow you to invest money on a pre-tax basis and your employer may “match” your contribution.

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Retirement Planning

• Traditional IRA: This plan is for individuals without a corporate sponsored retirement plan, but are considered employees. The maximum contribution is $3,000 in any given tax year. Money is contributed on a pre-tax basis.

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Your Professional Practice

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Your Professional Practice An Investment

• A professional practice has equity– Records

– Real Estate

• Private Practice =‘s Higher Income

• Tax Advantages– Lease car

– Write off’s and deductions

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Ten Facts About Loan Repayment

(1) You are obligating a portion of your future income every time you borrow.

(2) You can end up paying back as much as $3 or more for every $1 you borrow.

(3) You don’t pay interest on the portions of a loan you have already paid off. There is also no prepayment penalty on student loans.

Source: The Debt Management Workbook: A Five-Step Plan for Successfully Repaying Your Educational Loans; National Medical Fellowships, Inc., and Ruth Beer Bletzinger; U.S. Department of Health and Human Services; 1993

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Ten Facts About Loan Repayment

(4) Repaying your student loans can get complicated because there are so many organizations involved with your loans.

(5) Even if these organizations make mistakes, the responsibility for repaying your loans is yours.

(6) You are the best source of information about your loans, if you keep good records.

(7) Some of your loans will probably be sold from one organization to another.

Source: The Debt Management Workbook: A Five-Step Plan for Successfully Repaying Your Educational Loans; National Medical Fellowships, Inc., and Ruth Beer Bletzinger; U.S. Department of Health and Human Services; 1993

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Ten Facts About Loan Repayment

(8) When your expenses exceed your income, financial problems inevitably result.

(9) If you are delinquent or in default on your education loans, EXPECT THE WORST!

(10) With a certain amount of planning, the odds show you will successfully repay your loans.

Source: The Debt Management Workbook: A Five-Step Plan for Successfully Repaying Your Educational Loans; National Medical Fellowships, Inc., and Ruth Beer Bletzinger; U.S. Department of Health and Human Services; 1993

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