- Joined
- Jun 11, 2011
- Messages
- 1,162
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- 463
Ok, I'll play - what is your educational debt at the time that you graduate medical school? At what rate will you be paying it off? What are the interest rates of those loans? Unless this answer is zero, you are already worse off than if you hadn't gone to medical school, right? Because realistically you have lost 7 years of this glorious 10% compounding interest as well as continued principle contribution... AND you now have debt on top of the years lost.You clearly don't understand the power of compound interest. Let's say I were to make 300k out of the gate, year 1 post graduation. I invest 80k of my first year earnings at 10% a year (historically speaking) for the next 28 years (I won't have as long of a working life as most of you, given my age). That 80k ends up being worth $1,153,679.49. That's over one million dollars of opportunity cost you're giving up all to tack on "MD" instead of "DO." Personally, I decided that was a poor decision and went DO. And so far, I'm a competitive enough applicant to be an example of (hopefully) why most of these DO spots aren't going to all end up going to MDs. But we'll see. I think some spots (plastics, for instance) will go almost entirely MD, and overall, most of the competitive spots will lose a lot of ground to MDs. But overall, I think DOs that want to match in mid to lower tier specialties will probably fare just fine post-merger, as they'll take about as many spots as we give up in a lot of specialties.
Next step - Since you can't sock away all 80k in a tax deferred option, what are the other vehicles that you will use for your investments? How aggressive are you going to be? Willing to lose your principle in the hopes of big returns? What about all of the short/long term capital gains/losses that you'll have to add on to your taxes? Are you managing all this yourself or are you going to have some firm do the work?
Seriously, if you know of something that is giving guaranteed compounded returns of 10% over 28 years I'd love to hear about it.