Menu

Move short term HCOL –> LCOL for student debt?

Home Personal Finance and Budgeting Move short term HCOL –> LCOL for student debt?

  • Avatar ZZZ 
    Participant
    Status: Spouse
    Posts: 702
    Joined: 06/18/2018

    And reading from TX may complicate (and reduce rates) for billing for cases you read. Read up on place of service billing rules and make sure your practice knows.

    #204893 Reply
    xraygoggles xraygoggles 
    Participant
    Status: Physician
    Posts: 93
    Joined: 10/26/2018

    Have you checked out the California multi state tax rules? Establishing earnings being exempt from Cali taxes is critical. Does it take a residence for a calendar year and cutting ownership like DL and car registration etc due to the nature of your employment? One question would be State Licensing.
    Fla and Tex coasts might be lower costs. You might chose 6 months or 18. The “hip factor” is 40k undergraduates. That probably won’t do you a lot of good. Austin has 6th Street and some cool places.
    Matthew McConaughey, Lance Armstrong, Willie Nelson, Michael Dell all live there. Just probably in neighborhoods that make sense for more than a year.
    How can you look at the Texas legislature and still believe in intelligent design? Keep Austin weird is a way of life. Beauty is in the eye of the beer holder.

    Visit for a week, do your tax homework. California is aggressive.

    Click to expand…

    I didn’t think about the tax issues, but I think you are right about CA being aggressive going after taxes…. this may complicate my plans, and may make it very less likely to move for a year or two and deal with all the hassle….

    “Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it.”

    #204910 Reply
    xraygoggles xraygoggles 
    Participant
    Status: Physician
    Posts: 93
    Joined: 10/26/2018

    Getting a better radiology job would do far more for your financial well being than moving to Austin, which is decidedly not LCOL. Your pay is pretty low for a radiologist working that much, and I bet your benefits are subpar, and that 400k is probably 1099. Have you looked for a better job?

    Click to expand…

    No, I work as an employee with great benefits. I would never have a normal 8-5 job working every week, but that’s just my personal preference.

    “Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it.”

    #204912 Reply
    xraygoggles xraygoggles 
    Participant
    Status: Physician
    Posts: 93
    Joined: 10/26/2018

    your plan makes no sense. u already make enough to pay off your loans, why would you move to some random place to work more.

    Click to expand…

    Thanks for your blunt wisdom… I think? 😉

    “Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it.”

    #204914 Reply
    Liked by q-school
    Avatar adventure 
    Participant
    Status: Spouse
    Posts: 1183
    Joined: 10/24/2016
    and I bet your benefits are subpar,

    Click to expand…

    Getting to work from home is pretty ideal.

    #204931 Reply
    Avatar ZZZ 
    Participant
    Status: Spouse
    Posts: 702
    Joined: 06/18/2018

    “Getting to work from home is pretty ideal.”

    Getting to work from home while receiving total comp on the order of 70% of other radiologists who can also work from home would seem less so.

    “I would never have a normal 8-5 job working every week, but that’s just my personal preference.”

    Nobody said work an 8-5. Just suggested that maybe instead of moving halfway across the country to save a bit on state income tax and have a marginally lower cost of living, you could try to find a job where you do exactly what you currently do, but get paid better than the current low for radiology pay that you’re making. I mean, if you’re really looking to move for a couple years to make hay and save. I mean, if you want to move to Austin, I hear there’s a big group down there that pays substantially more than you’re currently making. Spend less to live AND make more for doing the same work, that’s geographic arbitrage.

     

    #204936 Reply
    Avatar Tim 
    Participant
    Status: Accountant
    Posts: 3059
    Joined: 09/18/2018

    “geographic arbitrage” applies to any distance. Some call it a commute. Just saying.

    #204974 Reply
    Liked by Zaphod
    Avatar MSooner 
    Participant
    Status: Spouse
    Posts: 200
    Joined: 02/25/2016

    I hear there’s a big group down there that pays substantially more than you’re currently making. Spend less to live AND make more for doing the same work, that’s geographic arbitrage.

    That group just sold out to private equity this year. I cant imagine how many of those in the middle of the FIVE YEAR partnership track were thrilled about that. Supposedly they are having trouble recruiting because of this, but I’m not sure if that is true or not. Austin was on our list, but we quickly scratched it after looking closer at the job market/COL there. And that was before they buyout.

    The radiology job market has gotten WAY better in the past two years, but supposedly the coasts (especially coastal CA) are still pretty horrific. I figured OP was working telerads because it may have been the best job for someone that was only looking in San Diego.

    Everyone and their mother wants to live in Austin…it really isn’t that great of a deal. In general, over the past 5 years metro Texas just isn’t that great of a deal anymore–though Houston and San Antonio are a bit better. It used to be if you could handle the weather/lack of stuff to do then the COL was worth it. Not so much anymore. It certainly is still cheaper than the most expensive areas, but it isn’t what it used to be. Now if you are willing to do an area like Lubbock, Temple, or Tyler…those are more of what people are expecting “Texas prices” to be, but you have to be a certain kind of person to be able to handle it.

    #204986 Reply
    Liked by Vagabond MD, Tim
    xraygoggles xraygoggles 
    Participant
    Status: Physician
    Posts: 93
    Joined: 10/26/2018

    “Getting to work from home is pretty ideal.”

    Getting to work from home while receiving total comp on the order of 70% of other radiologists who can also work from home would seem less so.

    “I would never have a normal 8-5 job working every week, but that’s just my personal preference.”

    Nobody said work an 8-5. Just suggested that maybe instead of moving halfway across the country to save a bit on state income tax and have a marginally lower cost of living, you could try to find a job where you do exactly what you currently do, but get paid better than the current low for radiology pay that you’re making. I mean, if you’re really looking to move for a couple years to make hay and save. I mean, if you want to move to Austin, I hear there’s a big group down there that pays substantially more than you’re currently making. Spend less to live AND make more for doing the same work, that’s geographic arbitrage.

     

    Click to expand…

    I’m not worried about pay, I anticipate making 400-500k/year starting in mid-2019 due to many factors.

    Not sure if you’re a rads or not, but the days of working for vRad as the only tele job in town is no longer the case. In fact, most tele jobs nowadays offer a base salary (W2 with benefits) along with the usual productivity bonus.

    And if you are a rads, I would consider looking into a tele job; you can thank me later.

    “Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it.”

    #204991 Reply
    Avatar ZZZ 
    Participant
    Status: Spouse
    Posts: 702
    Joined: 06/18/2018

    “I’m not worried about pay, I anticipate making 400-500k/year starting in mid-2019 due to many factors.”

    Hmmm. You considered moving halfway across the country to possible save money to pay off your loans quicker. You realize more pay would do the same thing for you, right?

    If you think that pay level is good…someone is making a ton of $ off of you. Sounds like the new tele paradigm is awesome…for the owners.

    #205040 Reply
    xraygoggles xraygoggles 
    Participant
    Status: Physician
    Posts: 93
    Joined: 10/26/2018

    If you think that pay level is good…someone is making a ton of $ off of you. Sounds like the new tele paradigm is awesome…for the owners.

    Click to expand…

    Yes that is true, it is a gravy train for the company’s coffers. However, you also get shares in the company, which can work out very nicely if/when it ever goes public.

    “Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it.”

    #205388 Reply
    Phoenixdown99 Phoenixdown99 
    Participant
    Status: Physician
    Posts: 160
    Joined: 03/20/2017

    Think about doing locums if you want something short-term – they will pay for your housing wherever you go, a car, travel, and usually great compensation if you go to a more remote area that lacks doctors.

    I got to see Oregon and Hawaii that way — two fairly high COL areas that I probably would not have otherwise lived in.

    #205459 Reply
    Liked by Tim
    Avatar ZZZ 
    Participant
    Status: Spouse
    Posts: 702
    Joined: 06/18/2018

    @xraygoggles

    “Yes that is true, it is a gravy train for the company’s coffers. However, you also get shares in the company, which can work out very nicely if/when it ever goes public.”

    Have you looked at those national radiology companies balance sheets or bond ratings? I wouldn’t count on those non-traded corporate scrip shares having much value should there ever be a liquidity event when the bonds are 5 steps into junk status.

    #234284 Reply
    Liked by Zaphod
    Zaphod Zaphod 
    Participant
    Status: Physician, Small Business Owner
    Posts: 6186
    Joined: 01/12/2016

    So as the title says, I am seriously considering moving from San Diego to Austin TX for 1-2 years to pay off my debt once and for all.

    About me:

    33, single, male, finishing my first year as an attending tele-radiologist, meaning work from home and have the flexibility to live anywhere. I work 7 days on/7 off the whole year.

    Have ~200k student loans (have paid off 90k in 9 months through combination of locums and hard work). My job is RVU but my average salary this first year was ~375-400k total.

    I am currently paying minimum 4.2k/month for loans, but I make a few thousand extra payment every month, depending on how much I have left over.

    In theory, I could move to Austin for two years (or even one year), do my regular tele job, plus locums on my off weeks. I would obviously keep a lot more (~3k) per month due to no state taxes in TX. Plus the LCOL would mean I would have more disposable income to pay down debt. 200k in one year would mean ~16k per month, which is definitely doable in LCOL area. It will take me 2-2.5 years to pay it off if I stay in SD.

    Does this sound crazy?? I really like CA and have my entire family here, but because I’m single and have a job where I could take advantage of “geographic arbitrage”, as WCI likes to say, it seems reasonable in my mind. I figure if I were to do something like this, Austin is as good a city as any to choose (relatively liberal, young, hip, lots of grad/college students if I meet someone etc.)

    Any thoughts/suggestions would be helpful.

    Click to expand…

    This is absolutely crazy. You seem pretty wound up about this debt thing but seriously, just give yourself a couple years and it wont be there. You’re single, give it a minute. Whats 2-2.5 years? Who cares?

    There is zero situation where moving does not cost money up front. It will be a hit. Also, Austin is not a LCOL area. Fun yes, cheap no. This is not geographic arbitrage this is doing something to feel like youre accomplishing something without actually doing it. I get it, it sucks to have a financial epiphany and not have things change over night. Thats the way it is, give it time. If in 5 years you still feel this way, move.

    Also, the older you get the less likely you move around and more likely you end up married, etc…You might end up marrying someone in Austin. If you then buy a house, well kiss your arbitrage good bye as Texas has brutal property tax laws.

    If you want to move to Austin for what it has to offer (breakfast tacos!) fine, but dont delude yourself with the debt angle, thats immaterial and can be crushed where you are. Austin is simply not lcol.

    I did actually do some arbitrage, more money job (well, more work) and way way low cost of living, and I dont expect to ‘break even’ on the cost of relocating (lost wages, tail, moving, etc…etc..) for 1.5-2 years. Also, given how hard it is to get a license in texas you might be out of debt by then.

    #234293 Reply
    Liked by EndoRobert
    Avatar Tim 
    Participant
    Status: Accountant
    Posts: 3059
    Joined: 09/18/2018

    •Trudy’s for breakfast in Austin!
    •License CAN be done in 3-4 months. Some articles have had anecdotal comment of around a year. I would guess, it’s like airport security, precheck if you are home state, US citizens and foreign.
    •Property tax is about 1.8%. But, it includes all local, county and state for utilities, schools, healthcare and public healthcare. With zero income tax the tax burden is on the low side.
    •COL Houston, Dallas, and Austin will require long commutes for trendy living or entertainment. It is not LCOL. MCOL at best. It’s not unusual for 45 mi one way.
    Rural, have at it. But that’s not your desire.

    #234343 Reply

Reply To: Move short term HCOL –> LCOL for student debt?

In case of a glitch or error, please save your text elsewhere, clear browser cache, close browser, open browser and refresh the page.

Notifications Mark all as read  |  Clear