Ryan Schulte

Interest capitalization and taxable forgiveness: two things you must understand if you have student loans

A lack of understanding regarding these two facets of student loans can have a significant impact on your wealth. Let’s start with interest capitalization. When you borrow money, you have to pay for the use of that money. It’s called interest. Interest is usually charged as a percentage of your outstanding principal.

Second is taxable forgiveness. When you get to year 20 (under the PAYE plan), any outstanding debt gets forgiven. Throw a party because that’s really great. But… there’s a catch. All of that debt forgiveness is considered taxable income.

When NOT to put money into a retirement account

crunching numbersYou’ve probably heard that you need to start early when it comes to saving for retirement. I often get asked by dental residents (some of which have $450k of outstanding debt) if they should save for retirement while in residency. For your average resident and recent grad, there are some very good reasons NOT to put money into a retirement account. Here are a few…

Public Service Loan Forgiveness: Is it worth it?

female dentistPublic Service Loan Forgiveness is a government program in which federal student loans get forgiven after 10 years of work at a qualifying non-profit or government organization. I’m going to assume for the purposes of this article that you are at least a little familiar with the plan. You can read more about it here.

There are a variety of considerations one must take into account when considering a job that qualifies for Public Service Loan Forgiveness. Often times the dentistry isn’t very exciting and the areas that offer these kinds of jobs can be somewhat remote. But I want to answer the economic question. How valuable is Public Service Loan Forgiveness from an economic standpoint?

Disability income insurance tips for new grads

new gradThe completion of dental school (or residency) brings a whole bunch of changes and new responsibilities. As this blog has made clear many times before, there are several financial changes a new grad must deal with. One of those financial questions new grads are often confronted with revolves around disability insurance. While not exhaustive, I’ll attempt to give a few tips on disability insurance in this article.

How to manage your first 401K

filling out paperworkWhen you get your first job, there is a good chance that you are going to have to make some decisions about participating in a retirement plan right away. In some cases that decision will be made for you. If you go to work for a corporate dental office, there is a pretty good chance you will end up with the option of a 401k. 401k Retirement plans are less common in smaller and private practices, but it would still be beneficial to have a basic understanding as one will likely be recommended to you at some point in your career. One other thing to keep in mind is that you could also end up working as an independent contractor, in which case you would not be able to participate in the employer’s retirement plan although you could set up your own. There are other types of retirement plans but for the sake of brevity, we will focus on the 401k. Here are some things you need to know.