In this podcast, I give my thoughts and reactions to a thought-provoking article from Lynn O’Shaugnessy.
This episode reveals the following:
– Learn What Destroys & Sucks Future Cash Flow From Physicians
– Consider Two Key Questions That Determines Your Ability to Retire
– 3 Reasons Why Physicians Fail In Planning For Their Kids’ Education
A month ago I was just reading this article that’s titled “Would You Pay $47,000 for the University of Oregon?” and this really just fired me up as I was thinking and reading about it.
In regards to physicians, I think one of the biggest cash flow sucks is how many docs end up paying for so much of the educational cost of their kids. You take this example that Lynn O’Shaughnessy writes in this article and at $47,000 a year today if you paid all of your kids’ education for going to an out-state university, in this case University of Oregon, that’s like $200,000 all in! You could buy a whole house for that!
I want to encourage everyone to think about this question… how much could you really afford to pay for your kids for college and how will that affect your retirement?
Are you willing to work longer to see your kids through school and graduate school?
What if they end up deciding they want to go and go into medical school for an additional four years?
Will you pay that too?
The best thing that most people can do is to plan and understand. Think about how this will affect them. Additionally, we can talk about 529 plans- we could talk about ways to cut college education.
I encourage you to check out a little booklet I have called 45 Secrets to Finance a College Education. It’s a nice little workbook on Amazon that gives you some great suggestions of how you can get the best financial aid.
Outside of financial aid and what that workbook talks about, the biggest obstacle is cost. Could your kids have an in-state university that is cheaper? Are they more competitive for given thing like chess or dance or sports? Could they can get a scholarship for it?
It’s unbelievable! I read the other day in a newspaper about this gentleman. He’s a chess geek. I was shocked- there’s a few colleges that have this incredibly competitive chess team that go across the world. This guy moves all the way across from the Philippines over here to the U.S. and got a full ride scholarship for chess of all things. I was blown away by that.
Consider this… what are your kid’s talents? What are their abilities?
As a matter of fact, you may not know yet what your kiddo’s talents are. I would push you towards finding colleges that cater to them. If they are thinking about a major in particular, what are school that might have need for those kinds of kids?
I challenge you to think about these things, think about how it will impact. One of the best things we can do is look up a financial plan to answer what if I wanted to do $20,000 a year for my kid’s education?
What if I want to do $30,000 a year for my kid’s education? How much do I need to save to do that and how will that impact my retirement?
The great news as physician you have plenty of income, you have plenty of resources and decisions to make and none of them are wrong. It’s just a trade-off. If you have any questions about this, feel free to give me a shout.
Well this is Dave Denniston for the Freedom Formula for Physicians Podcast, make sure to check out that forty five secrets workbook available on Amazon. Also if you have any particular questions you want to direct towards me, hey give me a shout at email@example.com or on this podcast http://www.freedomformulapodcast.com or on my main physician’s website, there is a box you can fill out there to contact me. That’s a daviddenniston.com/physicians. For the freedom formula for physicians podcast, this is Dave Denniston, thank you so much for joining me and make sure to subscribe and check in again soon. Have a good one.