2023 Senior Fellows Program (2nd & 3rd Year) | August 2023-Hou

Hou_ASGEFinancialLiteracy2023

Pdf Summary

In this document, Dr. Linda Hou discusses the importance of financial literacy for physicians. She acknowledges that financial education is lacking in medical training, but emphasizes that physicians must learn to manage their finances as soon as they start practicing. Dr. Hou points out that financial literacy is particularly low among doctors, with 90% of resident physicians feeling unable to handle their finances.<br /><br />Dr. Hou provides a simple formula for achieving financial success: make money, don't spend more than you make, invest the difference, and protect your finances from catastrophic events. She highlights the importance of protecting yourself and your assets through various types of insurance, including disability insurance, life insurance, and liability insurance.<br /><br />Disability insurance is especially crucial for physicians, as their ability to work is their most valuable asset. Dr. Hou recommends purchasing disability insurance as early as possible, as rates are cheaper for younger individuals. She explains the terminology and important features to consider when choosing a disability insurance policy.<br /><br />Life insurance is another important consideration, especially if others are dependent on your income. Dr. Hou explains the types of life insurance available and how to determine the appropriate coverage amount.<br /><br />Dr. Hou also provides guidance on spending, budgeting, saving, and paying off debts. She emphasizes the power of compound interest and the benefits of saving for retirement through tax-advantaged accounts. She also discusses investment strategies and considerations for those planning for children.<br /><br />In conclusion, Dr. Hou urges physicians to prioritize financial literacy and take control of their finances early in their careers. She emphasizes the importance of protecting oneself and one's assets through insurance, living within one's means, and making a financial plan.

Keywords

financial literacy

physicians

medical training

disability insurance

life insurance

liability insurance

spending

budgeting

saving

investment strategies