Financial Preparedness

5 Essential Financial Moves for Residents | Number 5 of 5: Prepare for Your First Employment Contract

June 15, 2017

fist_employment_contract1.pngYour first contract will set the stage for your financial future. Understanding your contract beyond compensation is critical. 

For instance, you need to know whether your prospective employer will cover your medical liability insurance and your tail coverage (the liability insurance that will cover any claims filed against you for care you provided as an employee after you no work there)—these are critical and can be very expensive. Learn more about essentials that need to be covered in your contract.

You should also ask about licensure fee reimbursement, time and reimbursement to complete CMEs, and student loan repayment support. These are as important as vacation time and on-call requirements but can be overlooked. Learn more about which benefits you should pay close attention to.

What you need to do: Get support

Evaluating an employment contract is one thing you don’t want to tackle on your own. You should be able to get the name of a good attorney from your state medical association, a physician mentor or your financial advisor.

The AMA also offers two e-books that can get you up to speed on contracts and help you understand common terms, the basics of compensation and benefits, legal consequences, working conditions, liability, restrictive covenants and contract termination.

It’s good to see residents feeling the sense of urgency to get their financial building blocks in place, and it’s important for you to know that even with a balance sheet that’s “in the red” right now, long term and with the right support, you’ll be fine. 

Allan Phillips is a Certified Financial Planner™ with Taylor Wealth Solutions, author of The Guide to Income Protection for Medical Residents, Fellows and New Practicing Physicians and a member of the AMAI Physicians Financial Partners program.

Read financial move No. 1

Taylor Wealth Solutions is not affiliated with the AMA. Taylor Wealth Solutions offers insurance products through Taylor Financial Corp.  Securities offered through Taylor Securities, Inc. (member FINRA/SIPC)  

Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, Certified Financial Planner™ and CFP® in the U.S., which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements.

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