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Welcome to the latest episode of the Physician Cents Podcast, where we explore complex financial topics tailored specifically for physicians. Whether you're a medical student, resident, fellow, or attending physician, you're going to find valuable insights that can help you increase your financial IQ, further your financial journey, and improve your overall well-being. Hosted by Chad Chubb and Tyler Olson, let’s dive in!
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Coming out of medical school and residency, most new doctors are focused on one thing—surviving that transition into practicing medicine. With long hours, intense learning, and the responsibility of patient care, it's no surprise financial planning often takes a back seat. However, ignoring financial decisions during this time can lead to some headaches down the road.
In a recent episode of the Physician Cents Podcast, hosts Chad Chubb and Tyler Olson dive into the crucial financial topics for early-career doctors. They are joined by Dr. Kaveh Hoda, a gastroenterologist and podcaster, to discuss everything from home ownership to locum tenens work—offering insights for physicians navigating the murky waters of early financial decisions. Below, we’ll break down what you need to be thinking about from day one.
It’s not uncommon for medical professionals to put off financial planning during training. As Dr. Kaveh Hoda points out, most of us come out of residency hyper-focused on day-to-day survival. The idea of planning your financial future can seem like too much. Plus, there’s this belief that, once you’re a practicing physician, the money will just take care of itself. Unfortunately, that’s not reality.
Doctors face a unique set of challenges. From substantial student loan debt to the unpredictable demands of building a career, many doctors barely think about finances until they’re well into practice. By that point, it can sometimes feel like there's too much to catch up on.
Dr. Hoda admits that he didn’t know much about financial matters as a resident, and in fact, he didn’t start seriously thinking about money until a few years into his practice. If he could go back to his training days, he’d ask some basic—yet key—questions that would’ve given him a head start.
So what could doctors do differently as they make the leap from residency to full-time practice? Here’s what we covered in this episode.
Many new doctors dream of buying a house as soon as they finish training. We’ve all heard that homeownership is the “best investment” and that if you rent for too long, you’re throwing money away. But as Chad and Tyler point out, this isn’t necessarily true for doctors coming out of residency.
The reality is most physicians don’t stay at their first attending job. Dr. Hoda, for example, switched hospitals even though he stayed in the same geographic area. That turnover is common. So why rush into home ownership if you’re not sure whether you’ll love your first job—or the city you’ve landed in?
Waiting to buy a house gives you time to figure out if your job is the right fit. Plus, it lets you build up savings, clear out high-interest debt, and get into good habits with retirement savings. Dr. Hoda himself didn’t purchase his first home until three years into his practice. And it wasn’t because he didn’t want to; it was a conscious decision to avoid the financial stress of locking into a mortgage before understanding his career path.
Waiting 3–4 years post-residency is often a good target. In that time, you’ll be earning a solid income as a full-fledged doctor, and you’ll know whether your first job is the right one. During this period, instead of focusing on a big down payment for a house, focus on paying off credit card debt, refinancing private student loans, and making sure you’re on track with retirement savings.
The old line "homeownership equals financial security" isn't a one-size-fits-all scenario, especially for doctors. Stay patient, and make sure you’re fully settled—both in your current job and your life routine—before jumping into the real estate market.
So if you’re not ready to buy property right away, you might wonder, “What should I do with my money?” A fair question, and one we tackled in this episode.
The last place you want to park all your money is in a checking account. It may be safe, but inflation guarantees that your dollars will lose value over time if they’re just sitting idle. Here’s what Chad and Tyler recommend instead:
There’s a lot of hype right now around real estate investments and other complex schemes promising passive income. While those options can work later, they aren’t where you should be focused right now. As Tyler emphasized, keep it simple. Build up savings, start investing for retirement, and avoid taking big risks during these early years.
Considering a 529 Plan to save for your kids’ education is a great idea—but it’s also one that comes with several complicated decisions. Every state has its own plan, and which one is right for you depends on several factors.
As Chad explained on the podcast, certain states (like Utah) offer much better 529 plans than others. Some states, like California, don’t even offer state tax benefits—but this doesn’t mean you can’t still benefit from a good plan offered elsewhere.
What should you look for?
Beware of signing up for a 529 plan that comes with hidden fees and advisor commissions. For example, Virginia’s plan is known for being "sold" by financial advisors who make commissions on the program. While there’s nothing wrong with this, it’s important to know what fees you’re paying versus choosing a direct-sold plan you can open on your own—often resulting in fewer fees eating into your savings.
Locum tenens—temporary work assignments for doctors—has become more popular in recent years. Doctors like the flexibility it offers. You can work for a few weeks, build up savings fast, and then take some time off to focus on other things. Yet, while the freedom to control your schedule is appealing, there is a catch you need to be prepared for: Uncle Sam.
Most locum tenens jobs pay doctors as independent contractors rather than employees, giving you a 1099 form at the end of the year instead of a W-2. That means higher take-home pay upfront—but a higher tax bill later.
Doctors who choose this work often fail to account for taxes properly. Forgetting to set aside enough for quarterly tax payments can lead to a devastating tax bill come April. We’ve all heard stories of someone who suddenly realizes they owe the IRS thousands they haven’t saved for.
Locum tenens physicians are, in many ways, running their own business. You’ll need to consider setting up an LLC, possibly electing for S-Corp status, and making sure you’re contributing to a solo 401(k) for retirement. Separating business expenses from personal ones is key—and requires extra financial discipline.
Working locum tenens can be great for doctors at the beginning of their careers or looking for more flexibility. Just make sure you’re ready for the financial logistics that come with it.
Private practice isn’t the path most doctors choose nowadays, but it’s still an option for those wanting more control over their career. If you’ve ever dreamed of being your own boss, then opening an independent practice might be appealing. However, setting up a practice involves complex tax decisions right from day one.
Confused about LLC versus S-Corp status? You’re not alone. Many doctors think of an LLC and an S-Corp as completely separate things. In truth, an LLC is an entity you create, while S-Corp is a tax classification you can choose if it benefits you. The key move is setting up the LLC first and then discussing with a tax advisor if electing S-Corp status makes sense.
As Tyler explains, don’t rush into the S-Corp election because you saw a post about how it saves on taxes. The real savings depend on how much you earn and other factors—and making the wrong decision can lead to headaches down the road.
For doctors coming out of residency and into practice, finances aren’t always the top concern. But ignoring key decisions, like when to buy a house or how to set aside savings, can have long-term consequences. Talking to trusted professionals and asking hard questions about your financial future will save you time, stress, and money.
Whether it’s delaying homeownership, understanding 529 plans, or exploring locum tenens work, educating yourself now will set you up for financial flexibility and stability later.
The best of the best list is a paid sponsorship, but these are professionals/companies that Tyler and Chad collaborate with within their own practices or have been vetted to earn a spot on this list. By supporting our sponsors, it allows Chad & Tyler to dedicate more time to you and the Physician Cents community. If you ever have a question (or not a great experience, which we don’t expect!) about a sponsor, please let us know. We call it the “best of the best” for a reason, and we will maintain that standard for our listeners & viewers.
This information is for general purposes only. This information is not intended to be a substitute for specific professional financial, tax, or legal advice, as individual circumstances vary. Please see a financial professional, CPA, and/or an attorney in regards to your own individual situation.
Wealthkeel’s Advisory Services and Financial Planning offered through Vicus Capital, Inc., a Federally Registered Investment Advisor. WealthKeel LLC, 615 Channelside Drive, Suite 207, Tampa, FL 33602 -- 267.590.9533.
Olson Consulting LLC, Offering Advisory Services and Financial Planning, is a State-Registered Investment Advisor.
A podcast designed specifically for physicians, offering a breakdown of complex financial topics to help you develop your financial IQ, further your financial journey, and improve your well-being. Whether you're a medical student, resident, fellow, or attending physician, you're sure to learn something new that will benefit your journey.
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