How to Introduce Personal Finance as a Wellness Topic. Steven Minnick MD Nathaniel Minnick DO

Transcription

1 How to Introduce Personal Finance as a Wellness Topic Steven Minnick MD Nathaniel Minnick DO

2 Medical School debt impacts the resident: Effect on present and future income Delayed start of their financial future Our talk will address: How to begin their financial future with high debt low income Debt Management resources available BETTER EDUCATION >> BETTER DECISIONS >> BETTER USE OF THE FINANCIAL SYSTEM

3 A major theme of our talk is there is a lot of help out there for residents FOR FREE

4 Key Concepts 101 Level Items The difference between 401k/403b and IRA What a Roth IRA is Pre-tax and post-tax account difference How to do a Backdoor Roth IRA And why. Include Form 8606

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10 $1000 $11000 $500 ROTH $8000

11 ACCOUNTS TAX ADVANTAGED NOW PRE TAX 401K 403B 457 IRA RETIREMENT

12 Key Definitions Stocks Indices (S&P 500) Bonds Mutual Funds ***INDEX FUNDS***

13 Key Insurance Points Disability Own occupation importance 6 Carriers with true own-occ Life Mass Mutual, Union, Guardian, Ohio National, Principal, Standard Only when the resident needs it

14 Curriculum DO NOT: Talk about inflation Show too many graphs / charts Introduce complex products (HELOC) Require speaker to collect information

15 Real Life Experience Life insurance for single residents Whole Life Insurance ($7000 a year) Inaccurate own occ definition Financial planner for residents

16 Use Examples Show them real life Get a Q&A set up ahead

17 My Roth IRA

18 My 403b

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21 E V E R Y W E E K : Blogs WHITECOATINVESTOR.COM MYMONEYBLOG.COM PHYSICIANONFIRE.COM Free open forum BOGLEHEADS.ORG

22 Get Everyone Involved Hospital Grand Rounds General Medical Staff Mtg

23 Student Loans Get an expert AAMC!

24 A Resource for Managing Resident Debt An Orientation to the AAMC Website On Resident Debt Management

25 Choosing the best strategy 1. Loan Repayment? or 2. Loan Forgiveness and /or Assistance? 3. Next Steps, i.e. balancing their debt s impact on daily living, lifestyle and their financial future

26 Where to go for help or guidance? Many resources and websites out there! AAMC is the best starting point AAMC Home Page

27 This government program provides forgiveness for the remaining balance on eligible loans after the borrower makes 120 on-time, qualifying monthly payments while working in a qualifying public service position.

28 120 Payments Nonprofit Training counts*

29 Let s start : The AAMC Home Page What follows is meant to be a tour of the wealth of information on this website not a lecture!

30 AAMC Home Page Medical Students Financial Aid Management RESIDENTS DEBT MANAGENT

31 Multiple links in areas such as: Loan repayment Loan forgiveness Loan assistance Next Steps

32 NOTE When you click on Loan Repayment Options:

33 1 2 Notice the direct links provided

34 1 Repayment Plans Compared

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36 2 Notice the direct links provided

37 3 Click Here

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39 Coming back to the Loan Repayment Options page you will also find the following. Scroll Down Here 4

40 4 The page provides information of the various Repayment plans Traditional Repayment Plans covers: * Standard Repayment * Extended Repayment *Graduated Repayment * Income-Contingent Repayment Income Driven Repayment Plans covers: * Pay As You Earn Repayment * Income based Repayment * Revised Pay As You Earn Repayment

41 4 On the Loan Repayment Options page scrolling down even further you ll find This page also provides the links to the: 1.EDUCATION DEBT MANAGER 2. MedLoans ORGANIZER and CALCULATOR* 3. NEXT STEPS Brochure (to make sure the resident takes timely action regarding the repayment of their loans)

42 Education Debt Manager You ve already seen the Med Loans Organizer And Calculator We ll review the Next Steps brochure soon

43 REVIEW PLUS: Repayment Plans Compared Chart link Federal Student Aid website link Review of the various repayment plans

44 Next, LOAN FORGIVENESS / ASSISTANCE Click Here 2

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46 LOAN FORGIVENESS / ASSISTANCE Click Here

47 Five steps to ensure eligibility for Public Service Loan Forgiveness 2 Step 1: Request a qualifying repayment plan for your eligible loans (re-request annually) Step 2: If necessary, consolidate eligible FFEL, LDS, and Perkins Loans into a Direct Consolidation Loan Step 3: Submit an Employment Certification Form (ECF) to FedLoan Servicing (re-submit annually) Step 4: Make 120 qualifying payments while completing eligible work Step 5: Upon completion of requirements, apply with FedLoan Servicing for the actual forgiveness

48 LOAN FORGIVENESS / ASSISTANCE Click Here

49 3 The following page provides information on the large number of programs available. Scrolling down you ll find

50 3 Notice the direct links provided

51 3 Notice the direct links provided

52 3 When you scroll to the bottom of this page you come to the following section: Click Here

53 3 The Fact Sheet provides info on: Eligible loans Eligibility requirements Qualifying Public Service Employment Questions To Consider When Evaluating Residencies

54 3 Click Here

55 3 This site is found on

56 Provides information on programs along with a link to a searchable database: Review

57 Lastly, Next Steps Next Steps provides help with deciding on: When to take steps to organize loans Deal with their grace periods Determine when to consolidate Apply for Forbearance Begin repayment of the student loans Help in considering on making a major purposes Selecting a Financial Planner

58 NEXT STEP ISSUES. 1 Click Here

59 1 The Next Steps brochure How to organize your loans Manage your loans with a grace period When consolidation is an option Complete the Employment Certification Form (ECF) Decide if you ll pay or postpone payments How to submit an Annual Recertification paperwork

60 NEXT STEP ISSUES 2 Click Here

61 Topics covered: 2 Do you have multiple student loans and servicers? Do you need a lower monthly payment? Are you considering work in Public Service? Do you have Private and Federal Student Loans? Are you considering a PAYE, REPAYE, or an IBR Plan?

62 NEXT STEP ISSUES. 3 4

63 Other thoughts Workshop vs didactic Financial journal / book club CFE Ask the Expert

64 Questions?