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Medscape Family Physician Wealth & Debt Report 2022
Jon McKenna | August 5, 2022
| Contributor Information
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Medscape Family Physician Wealth & Debt Report 2022
Jon McKenna | August 5, 2022 | Contributor Information
Last year brought welcome relief to family physicians, whose incomes generally rose as practices reopened after COVID-19 restrictions lifted and patients ventured out.
Over 13,000 physicians in more than 29 specialties told us about their compensation and about how they build wealth, with insights into how they save and invest, how they budget and control their expenses, and how well they live within their means.
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Medscape Family Physician Wealth & Debt Report 2022
Jon McKenna | August 5, 2022 | Contributor Information
Family physicians' average income rose about 8% over the $236,000 in our 2021 report. This ranks near the bottom of all specialties when it comes to physicians' income.
For employed physicians, income figures include salary, bonus, and profit-sharing contributions. For self-employed physicians, they include earnings after taxes and deductible business expenses before income tax. Only full-time salaries were included in our results.
"Compensation for most physicians is trending back up as demand for physicians accelerates," says James Taylor, chief operating officer of AMN Healthcare's Leadership Solutions Division.
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Medscape Family Physician Wealth & Debt Report 2022
Jon McKenna | August 5, 2022 | Contributor Information
Around the same share of family physicians as in our 2021 report (4%) reports a family net worth of more than $5 million. A similar percentage has a net worth of less than $500,000 compared with last year (40%).
The net worth of many physicians exceeds the average US family net worth of about $749,000, and their wealth is growing at a faster rate, according to the latest Federal Reserve data.
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Medscape Family Physician Wealth & Debt Report 2022
Jon McKenna | August 5, 2022 | Contributor Information
A net worth exceeding $5 million represents substantial family wealth. From one year to the next, the specialties topping the list of those reporting such wealth have shifted. In this year's report, family physicians rank near the bottom of all physicians in terms of building that much wealth.
A rising stock market certainly helped. The S&P index rose nearly 27% in 2021 compared with 16.3% one year earlier.
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Medscape Family Physician Wealth & Debt Report 2022
Jon McKenna | August 5, 2022 | Contributor Information
On the other side of the wealth coin, a similar percentage of family physicians compared with last year's report (40%) has a net worth under $500,000. Family physicians rank near the top of all specialties in that statistic; here, higher is not favorable.
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Medscape Family Physician Wealth & Debt Report 2022
Jon McKenna | August 5, 2022 | Contributor Information
Both male and female family physicians report a net worth exceeding $5 million at about the same rates as in last year's report (5% and 2%, respectively). Results are similar to last year's for those with a net worth under $500,000 (32% and 47%, respectively).
Male doctors, on average, earn more than their female counterparts, and that has an impact on wealth development. So does the relatively low percentage of female doctors in higher-earning specialties. Spread those income differences out over a 40-year career, and female physicians deal with an earnings divide of nearly 25%, one study shows.
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Medscape Family Physician Wealth & Debt Report 2022
Jon McKenna | August 5, 2022 | Contributor Information
The ranks of family physicians who say they live within or below their means are about the same as in last year's report (94%). Overall, 94% of physicians told Medscape that they meet that standard for careful spending.
What does it mean to live within your means? Joel Greenwald, MD, CFP, a wealth management advisor for physicians, has told Medscape that just paying your credit card bill each month and contributing enough to a 401(k) account to get an employer match do not meet his standard. You also need to save at least 20% toward retirement, pay down student loans, contribute to your kids' college savings, and set aside rainy-day cash, he says.
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Medscape Family Physician Wealth & Debt Report 2022
Jon McKenna | August 5, 2022 | Contributor Information
Create a household budget and follow it rigorously? Cut back on restaurant meals? Sure, but physicians offer other tactics as well.
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Medscape Family Physician Wealth & Debt Report 2022
Jon McKenna | August 5, 2022 | Contributor Information
Around the same shares of family physicians as in last year's report are making payments on a mortgage (67% in 2021) or car loan (44%), or are paying off their own college or medical school loans (31%). The share who are carrying monthly credit card balances is unchanged from a year ago.
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Medscape Family Physician Wealth & Debt Report 2022
Jon McKenna | August 5, 2022 | Contributor Information
About two thirds of family physicians felt comfortable spending as usual, the same as in last year's report (64%). Otherwise, they tried several common belt-tightening measures with about the same frequency as in the previous report.
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Medscape Family Physician Wealth & Debt Report 2022
Jon McKenna | August 5, 2022 | Contributor Information
A slightly higher share of family physicians say they avoided major financial losses than in last year's report (67%). Among those who took a loss, the percentage reporting issues at their medical practice is about the same as last year's (13%). In a good year for the US stock market, family physicians shouldered losses from stock or other investments at around the same rate as in last year's report (9%).
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Medscape Family Physician Wealth & Debt Report 2022
Jon McKenna | August 5, 2022 | Contributor Information
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Medscape Family Physician Wealth & Debt Report 2022
Jon McKenna | August 5, 2022 | Contributor Information
A similar share of family physicians is still paying off school loans compared with last year's report (31%). Family physicians rank in the top third of all specialists in that statistic; in this case, lower is better.
Freeing yourself from medical school debt remains very, very costly. Physicians in this country, on average, pay $365,000-$440,000 over time. Of that, $165,000-$240,000 is interest.
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Medscape Family Physician Wealth & Debt Report 2022
Jon McKenna | August 5, 2022 | Contributor Information
Physicians frequently choose stocks, business investments, or real estate ventures that don't work out. The percentages of family physicians reporting various investments that turned sour are around the same as in last year's report, as is the rate at which they cite no investing mistake (39% last year) or stay out of investments altogether (18%).
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Medscape Family Physician Wealth & Debt Report 2022
Jon McKenna | August 5, 2022 | Contributor Information
While improvement in the post-COVID US economy made it easier for doctors to save, family physicians are increasing or reducing their tax-advantaged savings activity at the same rates as in last year's report. About 12% of family physicians do not regularly put money into tax-advantaged savings accounts, compared with 9% of all physicians.
Many financial experts will recommend contributing 10%-20% of your salary, depending on your age, to retirement savings.
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Medscape Family Physician Wealth & Debt Report 2022
Jon McKenna | August 5, 2022 | Contributor Information
Compared with last year's report, the same or about the same shares of family physicians are increasing or reducing their taxable savings activity. About 28% of family physicians do not regularly put money into after-tax savings accounts, compared with 25% of physicians overall.
If interest rates continue to climb, more physicians could steer money into after-tax savings accounts like Roth IRAs.
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Medscape Family Physician Wealth & Debt Report 2022
Jon McKenna | August 5, 2022 | Contributor Information
A similar share of family physicians is carrying $100,000 or less in mortgage debt compared with last year's report (23%). About the same percentage has home loans over $500,000 (10%). Last year, 25% of family physicians said they had paid off their mortgages or didn't have one, similar to this year's response; for physicians overall, that statistic is 29%.
Amid a sizzling housing market, the size of the average home loan recently reached about $448,000, according to the Mortgage Bankers Association.
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Medscape Family Physician Wealth & Debt Report 2022
Jon McKenna | August 5, 2022 | Contributor Information
The ranks of family physicians who paid mortgages or other bills late during the pandemic are the same as in last year's report. (Participants could choose both "Yes" responses.) The vast majority of family physicians kept up with bills amid COVID, as they did last year.
They should feel fortunate. One 2021 industry survey reported that 46% of Americans missed one or more rent or mortgage payments because of COVID.
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Medscape Family Physician Wealth & Debt Report 2022
Jon McKenna | August 5, 2022 | Contributor Information
The average size of a US house has been falling, to 2261 square feet. By comparison, 60% of family physicians (61% in last year's report) live in a home of 3000 square feet or less.
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Medscape Family Physician Wealth & Debt Report 2022
Jon McKenna | August 5, 2022 | Contributor Information
Why do physicians in a particular specialty tend to have bigger houses? It's hard to say, and various factors could come into play. But 5000 square feet definitely qualifies as a spacious family home.
Family physicians rank in the bottom third for the percentage who live in homes that large. Last year, they also were in the bottom third for having big houses.
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Medscape Family Physician Wealth & Debt Report 2022
Jon McKenna | August 5, 2022 | Contributor Information
A similar percentage of family physicians makes do with one or two credit cards compared with last year's report (24%). At the other end of the spectrum, 37% of family physicians have five or more cards, compared with 39% last year. The average American has about four cards, credit bureau Experian reports.
Experts say that though you should be careful with cards and diligently pay them off, having five or more credit or loan accounts can help boost your credit rating.
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Medscape Family Physician Wealth & Debt Report 2022
Jon McKenna | August 5, 2022 | Contributor Information
About two thirds of family physicians differ in opinion, at least sporadically, with their significant other about spending (rarely, sometimes, often, or always). Physicians overall report a similar result. A Northwestern Mutual study found that across the country, around 1 in 4 couples argue about money at least once a month.
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Medscape Family Physician Wealth & Debt Report 2022
Jon McKenna | August 5, 2022 | Contributor Information
Do restaurant servers like having family physicians at their tables? Perhaps so, because 63% of family physicians say that they typically tip at least the recommended 20% for decent service. They are about as generous as the average physician (64%) in that regard.
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Medscape Family Physician Wealth & Debt Report 2022
Jon McKenna | August 5, 2022 | Contributor Information
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Medscape Family Physician Wealth & Debt Report 2022
Jon McKenna | August 5, 2022 | Contributor Information
Medscape Physician Wealth & Debt Report 2022: How Did a Tough Year Add Up?
Physicians report their successes and failures in building wealth, controlling spending, managing debt and expenses, investing smartly, and maintaining a comfortable lifestyle.Medscape Features Slideshows, June 2022
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