Conor Killmurray

After Dental School you'll most likely be carrying student debt for quite some time, making it important to not only figure out how to live with it but where to live with it. 

Student loans change lives. They provide incredible opportunities for millions of students. At the same time, small ones are nothing to scoff at and big ones can delay major life milestones by months, years, or even decades. With that in mind, recent graduates must factor their loans into decisions about where to live and work. This is especially true for dentists, as they are number 4 in the top 5 most debt heavy graduates with an 

According to Wallethub, a personal finance site powered by expert studies, outside of mortgages, student loans make up one of the largest components of debt in American households. So, suffice it to say, there’s no way to avoid paying off your loans if you’ve accrued them, and the best you can do is find a way to successfully manage student debt by making strategic decisions about where and how to live.

 detailing the best and worst states to live in with student debt. We here at 

 rounded up the key information from that study, as well as the five states with the least amount of student debt.

Wallethub compared two dimensions for all 50 states, “Student-Loan Indebtedness” and “Grant and Student work opportunities”. These were made up using different metrics specific to each category. For example, to calculate “Student-Loan Indebtedness” they measured average student debt, proportion of students with debt, student debt as share of income, share of student loans in past-due or default status, and share of student-loan borrowers aged 50 & older.

Under “Grant and Student Work Opportunities” the metrics used were unemployment rate among population aged 25 to 34, underemployment rate, availability of student jobs, availability of paid internships, grant growth, and presence of “Student Loan Ombudsmen” law. For both metrics a score of 1-100 was given, 100 being reserved for the states with the most student debt, and then the weighted average from all metrics was taken to craft the overall scores states received.

Extra weight was given to some metric’s points, like proportion of students with debt, student debt as share of income, share of student-loan borrowers, and unemployment rate among population aged 25 to 34.          

After all the calculations the rankings for each state may surprise you. Below, you can take a look at the top 5 states with the most student debt.

	The states that came in with the least amount of student debt were Utah, total score of 13.77, Hawaii, total score of 15.60, Wyoming, total score of 24.66, California, total score of 25.22, and Washington, with a total score of 30.18. It is important to note that while the states with the most student debt all ranked in the top 10 of student-loan indebtedness, West Virginia and Ohio both made it in the top ten of states with the best “Grant and Student Work Opportunities”.         

	Aside from the rankings, the data collected revealed some interesting findings that can also help a recent graduate decide where to live and work right after school. For instance, the state with the lowest student debt as a percentage of their income, which was adjusted for the cost of living in each state, was Maryland, which ranked 43

 on the overall list. It is also important to note that while Utah was ranked with the least amount of student debt, they only came in at 29

 when it comes to “Grant and Student Work Opportunities”.

	Of course, your situation is your own and unique to you. There are other factors to consider when finding the 

, but your students loans will follow you wherever you go. Make sure to take the time and research which state will ultimately have the best opportunities for you to chip away at your debt. 

5 Things to Consider When Opening a New Savings Account

What Losing the Public Service Loan Forgiveness Program Might Mean for You

Articles

Dental School graduates face some of the highest levels of debt post-graduation, a factor that should impact where they decide to live and work after school.

Where Student Debt is the Best and Worst for Dentists

When looking for a new place to move you should find out if you'll get the most value for your dollar, before you see how many nice restaurants the city has.

Whether it’s your first home, third home, or a new place to practice, buying real-estate is an exciting, and sometimes frustrating, milestone. So many factors go into it, such as your financial standing, your ability to invest, the local tax rates, the needs of the local patient population, and of course, how the new home looks, functions and meets your needs. The one factor that always stays consistent, however, is location.      

 from WalletHub, a personal finance website known for its detailed reports, that ranked the best cities to buy a home in the United States. For 2018, WalletHub updated their 

, offering a refreshed list of the best cities to buy a home that reflects their up-to-date standings.

The report from WalletHub comes from a study that compared 300 cities in the two categories of “Real-Estate Market” and “Affordability & Economic Environment”. These categories were made up of unique metrics that were graded on a 100-point scale.

For instance, under “Real-Estate Market,” metrics like home value forecast, median home-price appreciation, share of home selling for a gain, and the average number of days until a house is sold were used. In the “Affordability & Economic Environment” category, metrics like housing affordability, maintenance affordability, population growth rate and job growth rate were used.

Once each metric was evaluated, and each city given a score for “Real-Estate Market” and “Affordability & Economic Environment”, the weighted average was taken to come up with an overall score used to rank the cities from best score to worst score. You can take a look at the top 5 cities to buy a home below, along with their overall scores.

If you saw last year’s rankings, then you know that Frisco, TX, McKinney, TX, and Allen, TX, are still carryovers from the top 3. When it comes to just the “Affordability & Economic Environment” category these cities also rank 1, 2, and 3 respectively.

The most surprising rankings hidden within these overall scores come from the number 3 and 4 cities. Allen, TX is just outside the top 10 when ranked by “real-estate market” coming in at number 11. Then, Santa Clara, CA is ranked nearly at the very bottom of all 300 cities when it comes to “Affordability & Economic” rank, standing in at 247.

Outside of a strict 1-300 ranking of all cities involved in the study, Wallethub also found some interesting facts about these cities that could be useful when zeroing in on a place to move. For example, the city with the lowest maintenance cost as a percentage of your income is Longmont, CO, which ranks in at number 30, but is not even in the top 100 when measured by “Affordability & Economic Environment.” Santa Clara, number 4 in the Top 5 places to buy a house, has the lowest % of delinquent mortgage holders, whereas places like New York and Springfield percent of delinquent mortgage holders is 83x higher.

Of course, no study can take into consideration human elements like taste, preferred weather, community, and ultimately what it is 

 like. Yet, buying a house boils down to money and it’s important to consider which location will give you the best value for your dollar.

Focus Not Just on Growth, but Profitable Growth

Key Considerations When Selling Your Dental Practice

If youâ€™re looking to move your home and your practice, you have to consider many factors. But thereâ€™s one factor that trumps the rest: location, location, location. 

Top 5 Cities for Dentists to Buy a Home

When you start to look at how much you're paying just in taxes, it can certainly be disheartening. However, the benefits of the Section 179 tax deduction will help alleviate some tax headaches.

The end of 2018 is in sight and 2019 is beginning to peek over the horizon, but along with the new year also comes a new set of expenses to go through in order to properly file your taxes. Your personal taxes are probably a big enough headache but managing your practice’s taxes doesn’t have to be a slog too.

If you’ve already made any upgrades or expansions to your office, or are planning to make any before the end of the year, you could be entitled to a significant tax break under the Section 179 deduction. Here’s how it works.

 was signed into law, allowing small business owners to take an increased deduction for upgrades made to their office. This includes your dental practice, and it allows you to deduct up to 

 on the equipment you purchased within the calendar year.

Section 179 is designed as an incentive for you to invest in your practice and grow your business. For all of the qualifying equipment you buy or lease, you get to deduct the full purchase price from your gross income. If you elect to take Section 179, the full price of your equipment will be taken up front and not written off over time, like most practices do for their equipment.

Section 179 can also be taken on each individual item and not all of your equipment in one calendar year, unless you elect to fill out the form for each piece of equipment. On the other hand, you don’t have to use it at all. It’s up to you — you get to pick and choose the items to apply it to that make the most sense for your financial plan.

A tax deduction for new equipment is useless if the equipment you purchased doesn’t even qualify. Fortunately, the list of qualifying equipment under Section 179 is very broad and doesn’t require you to jump through many hoops.

Some items include computers, office furniture, improvements to your building like alarms and security systems, equipment for business use, and 

The Section 179 deduction does have one major caveat, and that is you can only spend a maximum of $2.5 million on equipment purchases before the deduction is reduced. However, this is a wide cap for most small practices, and up to this amount you will still be able to deduct the price of your equipment purchase in 

For instance, a $35,000-dollar equipment purchase will lead to a true cost of $22,750 dollars after tax. That’s a total of $12,250 savings on your purchase.

If all those cash incentives weren’t enough to gain your interest, then consider this: Section 179’s benefits are only guaranteed for 2018, so don’t wait till next year to elect to take it — it might not be around.

Asset Location, Strategy to Cut Taxes, Is Often Overlooked

Small Changes Can Improve Practice Profit Margins

If youâ€™ve upgraded your practice this year, the Section 179 Tax Deduction will help boost your bottom line and allow you to move with confidence into the new year. 

Here's How the Section 179 Tax Deduction Will Benefit Your Practice

As you grow your finances, you'll need someplace to keep them and a savings account is the safest place to do that. 

Not just a place to hold onto your money for future payments, the right savings account can also grow your money over time.

When you open up a new savings account it’s important to pay attention to these five factors to make sure you get the most out of your bank.

As mentioned before, your savings account is a place to grow your money over time. While a savings account won’t have the same potential return as investing in the right stock, every bank has an interest rate that they apply to the money you deposit. This is the amount which the bank will pay you for keeping your money with them.

Not every bank will have the same interest rates, so you have to consider which one has the highest interest rate and then if that will give you the highest 

 (APY). The APY is a separate percentage based off not just the interest rate, but the frequency at which the interest is earned. This makes the APY a more accurate measure of the profit you will earn on a deposit over the span of a year.

Some banks will also change the interest rate depending on how much money you plan on keeping in your account, so know ahead of time how much money you plan on depositing.

Seemingly everything is moving to have a permanent online presence and banks have been on the forefront of this change. Most banks have their own apps to conveniently access your money from wherever you are. You can deposit checks by phone, you can move money between accounts, and even open new accounts in them.

However, online banking might not be for you if you need access to your cash in a moment’s notice, or just want to deposit into your savings at an actual brick-and-motor location. You will have to make sure that the bank you are using has physical locations near you.

When you’re looking into a new savings account make sure your potential bank doesn’t have monthly fees that you’re uncomfortable with. Wallethub, an independent personal finance website, has a useful 

 with interest rates and monthly fees for you to compare. Often times banks will offer similar interest rates, so whether they have monthly fees or not can be a helpful tie breaker.

Each bank will also have different ATM policies when it comes to fees for withdrawals. Take into consideration if the bank you choose has their own ATMs near you, otherwise you will have to pay a fee for using a different ATM each time.

The Federal Deposit Insurance Corporation (FDIC) insures your money, up to $100,000, when you put it into a bank account. Investment companies aren’t covered by the FDIC, whereas the majority of banks are.

Make sure that the institution you choose is insured under the FDIC. Most of them will be, but you don’t want to realize your money was never insured after the fact.

If you have never opened up a savings account, then do it. A savings account makes sure that your money will be there for you as you accumulate wealth and start making purchases like a new car, or even a house.

If you already have a savings account, then it might potentially be more useful putting your extra money elsewhere. You can force yourself to save for your retirement by contributing to a 401K, or invest in fixed 

 that will guarantee you money over a longer period of time. Perhaps even another checking account might be a better deal. Don’t force yourself into another savings account unless your situation calls for it and you’ve considered all the facts.

Beat Inflation, Reduce Risk by Splitting Savings Among Safety, Safety-Plus-Growth, Growth Buckets

A savings account is a fundamental part of your financial health, so itâ€™s important to take into consideration these five factors.

Growing up in the Great Recession left a mark on Millennials and now their generation relies more on what they can put in a savings account than how much they can invest in stocks.

Since the Great Recession, confidence in the US economy has steadily increased. Just last year, in a 

 by Merrill Edge, 48% of Americans said they felt more confident about their investments. However, 80% of Millennials said they believed they would see another recession in their lifetime, with three in ten believing another recession will happen within the next five years.

This cautious outlook on the future of the economy led 85% of millennials to say they are likely to play it safe with daily investments.

 from Merrill Edge shows that this mindset has impacted the way Millennials decide where and when to invest their money.

When it comes to investing in the stock market, according to a 

, only 31% of people aged 18 to 29 own stock despite the record growth the market has recently seen. Furthermore, a 

 reports roughly half of millennials said investing in the stock market was just “too risky”.

The unpredictable nature of the market can certainly scare people away, but when it comes to investing their money Millennials won’t have as much to divest in stocks due to student loans. Especially dental school students as 

over 10% of their monthly income is used for debt repayment

The majority of Americans who participated in the Merrill Edge research responded that when it comes to investing they are more likely to invest in companies that pay women and men equally (87%), promote diverse leadership (85%), demonstrate commitment to environmental sustainability (82%), provide three or more months of family leave (78%), share their religious beliefs (62%), and support the LGBTQ community (61%).

Of the groups polled, 87% of Millennials were most passionate about investing in companies that promote diverse leadership and equal pay. This shows a desire among their generation for their investments to have a lasting impact beyond a positive return.

According to last year’s fall report from Merrill Edge 66% of millennials have said that when it comes to long term finance, they’re more likely to rely on their own savings account in 20 years.

As a generation that grew up in the Great Recession and entered the workforce before the current highs it’s easy to be suspicious of how long the current growth of the market will last. This is why 46% of Millennials reported that they were more financially conservative than their parents. The impact of the Great Recession also made 64% of Millennials feel more responsibility when securing their finances.

How one decides to handle their finances is dependent on the person and their unique situation. However, the stock market doesn’t have to be high stakes only.

Start out small and invest in a reliable company. By putting in small amounts over time you can reduce the risk and gradually conquer 

. The longer you let your investment grow the better your chances are to see a positive outcome. If it doesn’t work out that’s ok, because you kept your investments small in the first place.

Want to Do Better Than Bonds? Consider Fixed Indexed Annuities and Fixed-rate Annuities

Marketing to Millennials is Not as Hard as It Sounds

Each generation invests differently. Millennials have been shown to invest less and trust what they can directly control. 

Millennials Are Being Cautious With Their Investments

The Public Service Loan Forgiveness Program might not last through 2019. It's important to look at how losing this program will impact repaying your loans. 

In 2007 the Bush Administration started the Public Service Loan Forgiveness Program (PSLF) that forgives federal debt for borrowers who made 120 payments, or 10 years of loan repayments, while employed at a nonprofit or public institution.

The program now looks like it will be going away by 2019 and it isn’t clear whether there will be a new program put in place, or if borrowers pursuing federal loans currently might still be grandfathered into the program.

This is concerning for dentists because as recent as 2017 a third of medical school graduates plan on using the program, according to a report from 

. Furthermore, dentists are in the top five of professions with the highest monthly debt-to-income ratio as over 

10% of their monthly income goes towards debt repayment

This forgiveness program could be a crucial part of a recent graduate’s plan, and now there’s a strong possibility it may not factor in it at all. It’s best to start preparing for repaying loans without the PSLF and readjust your future plans.

According to David A. Asch, MD, lead author of the PSLF commentary, the program is “structured to encourage borrowers to minimize current loan repayment to maximize eventual loan forgiveness.” However, the potential to have a recent graduate accumulate more debt as they delay paying off loans is dangerous.

When looking at your loan repayment plan after medical school you can create a plan based off of your income. These plans range from making payments equal to 10% of your discretionary income or under 20% of your discretionary income depending on your preference. Some of them would also be longer than the average 10-year repayment plan.   

For more on different ways to repay your student loans: 

If you based a separate financial plan for your future on using the PSLF then you will have to readjust it for how much of your income is a part of the income-based loan repayment plan you chose. Regardless, you will have less than the average interest rate of a 10-year loan repayment plan. You also get the extra reassurance that income-based repayment plans will not be replaced.

Part of the call to end PSLF is the unintended outcome of graduates with higher earning specialties, like oral surgeons, will end up responsible for less of their debt than those pursuing lower earning specialties. Higher earning specialties require more schooling and training than just dental school, which means taking out more loans to pursue it.

The PSLF will help you with your heavier student loans from more years at school the same way it helps with any other loans. Yet if it’s taken away you will be burdened with more debt than most graduates. Granted, specializations mean higher pay, but your income will be used to pay off your loans for a longer period of time.

However, you don’t have to get more specialization training right away. Find a mentor after dental school or reach out to a network of peers to find a different starting point than working in public services for ten years.

For more on taking a different path after graduation:

Working for a non-profit is still an option 

If working for a non-profit or public institution is your passion don’t feel threatened. While you might have to restructure your financial plan there are programs that will assist you as you pursue work in areas that lack access to dental care.

The National Health Service Corps Loan Repayment Program

 will issue $50,000 tax free in loan repayment for working two years full-time in rural, urban, or frontier communities in the US that don’t have the same access to care as the rest of the country.       

This program can also be used as a guide to review individual state loan repayment programs as you plan where to live.

The PSLF may be the biggest loan repayment program available, but it is not the be all end all. If it is cancelled, state programs will still continue. Don’t be discouraged if your plan was to use the PSLF program for 10 years. With enough planning and researching you can find a program that fits your financial situation and helps with your student loans.

For more on other loan forgiveness programs

With the future of the Public Service Loan Forgiveness Program up in the air, it is important to look at the impact getting rid of the program will have on your future.

Retirement planning involves many different factors. Here we break down what's true and false for one the biggest factors, your Social Security benefits.   

Social Security is the federal safety blanket that everyone has been paying into since 1935. Designed to ensure people have some support when they retire, the plan has seen its fair share of troubles as the question on how to keep it going has yet to be answered.

This debate has led to various notions about what Social Security is and what it means for your retirement. We take a look at four of these common beliefs and tell you if you should accept them or not.

Belief: Social Security won’t be around for anyone retiring in the next 20 years

Even if there is no plan put in motion by 2034 there will still be 

enough funds to pay 79% of the promised benefits

 that year. The reserve trust funds allow the benefit payouts to not go lower than what they are now, but once they’re gone payouts will decrease.

The Social Security program itself is kept afloat by payroll taxes, so as long as people are working Social Security will exist. It just won’t be able to give out the same benefits that it can now.

Belief: If you claim benefits early they will be reduced 

You can start collecting your retirement benefits at 62, however, they will be reduced based on how many months are in between 62 and your full retirement age.  

For instance, if you were born between 1943-1954 your full retirement age is 66, according to the 

. With 48 months between 62 and 66 they will reduce your retirement benefit by 25%.

You can also choose to work as you collect Social Security early. However, 

 will deduct $1 from your benefit payments for every $2 that you earn above the annual salary limit. The annual limit changes each year and for 2018 is $17,040.

Belief: Social Security isn’t available for your full retirement 

Despite all of its troubles, Social Security is guaranteed income for life and is protected from inflation. According to the 2018 

Nationwide Social Security Consumer Survey

 the majority of Americans are not aware of this.

It’s important to take full advantage of this benefit and use it as a part of your retirement plan. Granted, the reality of the program is that it can’t support your full retirement, but there are 

Belief: You can wait to collect your Social Security benefits later than 62

You have until you hit 70 to start collecting your benefits, and the longer you wait the more they will 

. For example, anyone born in 1943 or later will see their benefits increase by 8% each year from full retirement age until they start collecting benefits at 70.

 accordingly to maximize the potential benefits. If you continue to work at full retirement age Social Security will deduct $1 from your benefits for every $3 you earn above the annual limit, which does change each year. For 2018 its $45,360. This isn’t as low as the annual salary limit when you collect at 62 and still work. 

Social Security isn’t the retirement safety net it once was. Even so, knowing the truth of what it can actually do for you will give you the extra financial security you need in your golden years.

Create Your Own Pension Using an Economist-Recommended Method

Social Security is in trouble but can still help your retirement plan. We look at common beliefs people have and examine if they are true or false.

What to Believe and Not Believe When Talking About Social Security

Credit cards can be a useful tool, but you have to be mindful of the debt you accumulate. 2018 saw a significant rise in credit card debt for most Americans.   

 based on an analysis from personal finance site WalletHub.

 they found that outstanding credit card debt is at the second highest point since the 2008 recession. This is due to some unsettling trends that you might not realize you’re a part of.

Here are three trends to be mindful of with specific tips for mitigating their effects.

Trend: Average Credit Debt per Household Increase 

According to the latest findings, the average household’s credit card debt in 2018 is $8,332. While that is only a 4% increase from 2017, it is $129 away from being considered unsustainable debt.

You can’t plan for every scenario, so it’s best to have money set aside for the “what if” scenarios.

A safety net also makes sure you’ll never fall behind on your bills no matter the scenario. One way to stay ahead of your finances is to gradually save a year's worth of income, or more if you can afford it. You can do this by setting aside every other paycheck you get into a savings account.

You can also force a savings account by contributing more to your 401k. Not only will you be set up better for retirement, but in an emergency you can 

Trend: The Charge-Off Rate is Up 2.7% Year Over Year

 is when a debt cannot be collected in certain scenarios, such as bankruptcy or not paying your minimum payment after 180 days, and is not forgiven. It will stay on your credit report for 7 years and you can expect lenders to recoup their loss through a lawsuit. The 

 comes from charge offs divided by average outstanding card balances.

A rising charge-off rate is considered a sign for an economy under duress. In Q2 of 2018 the charge-off rate increased to 3.74%. This is not the 2010 high of 11%, but it is at the third highest point since 2012 and increasing.

Tip: Tackle the Card With the Highest Interest Rate

If you have multiple credit cards and they have outstanding balances, you have to prioritize which card to pay off first. Start with the card that has the highest interest rate.

To do this make sure you pay just a little bit more than the minimum balance no matter what to avoid the interest rate. Set up an auto payment each month so you don’t forget to make a payment. You can also break up the payment into installments according to your budget goals.

In Q1 of 2018 Americans repaid $40.6 billion in credit card debt. This was the second largest quarterly debt payoff ever. But in Q2 of 2018 we added $29.8 billion in credit card debt right back. This was after starting off the year owing more than $1 trillion in debt.

As the WalletHub study points out, only four times in the past three decades have Americans overspent so much in a year.

Tip: Make a Budget That is Tailored to You and Has A Maintenance Plan 

Making a budget boils down to determining how much money you have to spend on essential and non-essential items. 

WalletHub’s “how to” on budget plans

 is a mostly standard guide. The advice includes making goals, such as getting out of debt in 2 years or saving for a $1,500 vacation next summer. You’re also advised to pick a template to follow and itemize your expenses over time. However, what sets their advice apart is telling you to not only make the plan your own, but to update it.

Your budget has to reflect your unique living situation and how it will change over time. Set aside time at the end of every month, or whatever time period you initially budget for, and review your financial plan.

Find out what’s changed for you and how that affects paying off your debt. If you’re on track, great! If you’ve over spent in a month figure out how to bring that number down 

without resorting to living off the bare minimum

Dentists Among Highest Student Loan Monthly Debt-to-Income Ratio

Credit card debt is on the rise in 2018. Itâ€™s important to know what trends to look out for and how to handle them.

2018 Credit Card Trends and How to Handle Them

Your goals for saving might be daunting, but you don't have to sacrifice everything in order to achieve them.

Saving money is often times associated with making sacrifices of creature comforts, like getting a cup of coffee before going into the practice. But saving doesn’t have to mean giving up what you like.  

Here are four simple things you can do to save without eliminating what you enjoy.

Think of your 401K or other retirement plan as a forced savings account. Yes, you want to use it for retirement, but in an 

 it’s money you’ll have tucked away, increasing over time. As a general rule of thumb, you want to increase your contribution from your paycheck by 1% each year. There are various tools to help you figure out how much you should contribute.

, an easy to use independent site, provides a guide on the basics to navigating your 401K. Just enter your age, income, and current 401K information and watch the system do the rest.

The garage sale is a tried and true method for cleaning house. No matter your age it’s likely that you have accumulated items over the years you don’t use anymore. There are numerous ways to sell these old items online, such as eBay to Facebook, that don’t require much effort. You can also ask your family and friends what they’re looking for, as you never know who needs something.

You aren’t beholden to just selling unused items, you can also donate them. Not only is charity a reward unto itself, but organizations like Goodwill will give you a receipt for a tax write off. Charity can also help promote you and your practice as an active member of the community, an 

Credit card companies are pushing rewards now more than ever. It’s a safe bet your credit card will have one of these programs in place for spending on certain activities like going to the movies, getting gas, or going grocery shopping at participating stores. If your credit card doesn’t have a program in place, you can easily switch to one that offers bonuses like airline miles and giftcards.

Credit card spending is something that can easily get out of hand without you realizing it. One way you can manage this, is by setting up a small monthly auto-payment that is slightly above your minimum payment to chip away at your debt. This will help prevent accruing interest and you won't have to remind yourself each month to pay your bill.

Now, this may seem more like sacrifice, but try to find a cheaper or free replacement for something you would normally spend money on. For example, make your favorite coffee right at home. Many coffee shops sell their coffee beans for you to take home in bulk. At the time of purchase it’s more than paying for a single cup of coffee but overtime the savings will add up.

Want to meet up with a friend? You don’t have to spend money to have fun. Go for a walk in a local park or find something free, like a museum. Shopping for food can also add up, so be savvy and look for coupons on your favorite items along with the daily sales.

Keeping an eye out for little savings in your day-to-day life will make sure what you want to spend your savings on doesn’t turn into a burden.

Saving your money doesn't mean you have to overhaul your lifestyle. A few small changes can go a long way. 