Money Minutes for Doctors #21 - Loss of Income

For the first time in a long time, and possibly forever, doctors have lost income during the COVID pandemic. In this episode we speak to Ms. Katherine Vessenes, JD, CFP®, RFC, Founder and President of MD Financial Advisors, about actions doctors can take when the have lost income and need to recalculate their budgets. These are easy action items you can take now to decrease stress, regain control of your monthly budget and avoid long term negative consequence.

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About Ms. Vessenes:

Ms. Vessenes works with over 300 physicians and dentists from Hawaii to Cape Cod. Her firm uses a team of experts to provide comprehensive financial planning to help doctors build their wealth and protect their wealth while reducing taxes now and in the future. Katherine is a longtime advocate for ethics in the financial services industry; and has written three books on the subject of investment strategies. She has received many honors and awards including: numerous tributes from Medical Economics as a top advisor for doctors, multiple 5-Star Advisor Awards, honored as a Top Woman in Finance, in addition to being selected to be on the CFP® Board of Ethics. Katherine can be reached at: Katherine@mdfinancialadvisors.com or 952-388-6317. Her website: www.mdfinancialadvisors.com.

Quick Summary

What to do when you have lost income:

  • Take stock of spending

    • Most of our clients are spending a lot less – no vacations, no daycare. 

    • Cut nonessential expenses like eating out/take out/gym/etc vacations

  • Mortgages

    • Consider refinancing your current mortgage as rates are historically low

    • If you cannot make your monthly payment reach out to your bank and discuss options.  Many lenders are allowing a temporary reprieve but act soon before the account falls behind.

    • Many mortgage lenders are suspending or reducing payments, check with lender

    • if backed by Freddie/Fannie—extending their forbearance program which could suspend payments for up to a year

  • Student loans

    • Currently on Federal student loans the interest rates has been reduced to 0%

    • Can possibly qualify for 6 months forbearance

  • Credit Card debt

    • Contact banks; they have been instructed to work with you and might waive fees or even lower interest rates

  • Health insurance if you have lost your job

    • COBRA, expensive

  • Contact MD Financial directly regarding alternatives (even if not a client) 

Money MinutesKristina McAteerComment