Advice for Residents

You’re focused on your medical career. Let us focus on your financial well-being.

Your medical residency can bring new financial questions. Finding the right balance between paying your medical school debt and starting to enjoy the benefits of your new income can be stressful. You deserve specialized financial advice and answers to your financial questions to help you navigate this important chapter in your career. We break down some of the top questions medical residents ask.

You're focused on your medical career. Let us focus on your financial well-being.

Learn More Banking Solutions for Residents

Banking Solutions for Residents

You're focused on your medical career. Let us focus on your financial well-being.

Learn More Banking Solutions for Residents

Frequently Asked Questions

Residency is often the first chance for physicians-in-training to start thinking about paying down debt. As a medical student, you may have a combination of government student loans and a student line of credit. For government student loans, you typically have at least six months following medical school before you need to start repaying. The terms of your student line of credit will depend on your financial institution.

 

See the blog post Financing medical school and residency: Understanding your borrowing options


Salaries for your first year of postgraduate work (PGY-1) are typically  in the mid-$50,000 range, so depending on where you live, it could be possible to start paying down your debt, or investing, or both.Your feelings about debt should be taken into account: if being in debt makes you uncomfortable, there’s nothing wrong with considering to pay down a portion of it first.

 

Once you understand the nature of your debt and your feelings about it, as well as the benefits of paying down debt versus investing, you’ll be more confident when you make decisions about your financial plan.


Read Should medical residents start saving or pay down debt?

 

Many residents continue to rent until after they enter practice. One advantage to renting  is, it could  give  you the flexibility to change your location and time to decide where you will settle.

 

There are some upfront costs of home ownership — as well as the ups and downs of house prices in the short term —that means  it  may be unwise to buy unless you keep the home for several years at minimum. Or you want to use it as an investment.

 

The best first step is to meet with your advisor to assess your situation. You can weigh the cost and other advantages of renting versus buying and consider various factors before you decide. First-time buyers should be aware there can be a big difference between being able to afford a home and being financially comfortable owning one.

 

To learn more about the costs of home ownership, see Rent or buy: What to think about before you decide

No matter what life stage you are in, tax time can be challenging. As a resident, you should try to make sure you benefit from all the deductions and credits you are eligible for. Whether it’s about claiming the interest on your student loan and your professional dues, or understanding how to invest to minimize the tax you owe, the right advice can make all the difference. In collaboration with your tax and legal professionals, an MD Advisor* can help you build a financial plan that is as tax-efficient as possible and will review your plan regularly to ensure your tax planning strategy stays on track.

 

To learn more about ways to minimize the taxes you pay, read 5 tax tips you may not know about.

Already an MD client and want to talk about your financial plans? Contact your MD Advisor or visit MD.ca

To learn more about the banking solutions available to you call a representative at 
1-888-222-3918 or book an appointment with an Advisor.