Where Are They Now? An Update From Wealthy Doc

One of the great pleasures of this blog has been getting to befriend and learn from other physician finance bloggers. It's an even greater privilege when they offer to share their playbook for how cutting back their clinical hours helped them achieve their goals.

I met Wealthy Doc in a bar in Orlando, but we weren't living out the lyrics of Copa Cabana. I was attending FinCon18, and he was among the first to induct me into a new tribe. He was humble and welcoming, and only years later would I learn (from the White Coat Investor himself) that Wealthy Doc remains the longest-surviving physician finance blog on the web.

Wealthy Doc was kind enough to offer to provide an update on where life has taken him since his original interview as our 5th guest in the Docs Who Cut Back series. Take it away, my friend...

It was fun to share my story of cutting back in 2018. It has now been another 2.5 years and time for an update. I’m glad to report that life over the last few years have been great. 

You Could Do This Too

Cutting back can be sustainable, and the benefits can continue. A lot of doctors react that they cannot cut back for various reasons. The “Docs Who Cut Back” series has made that excuse less tenable. Doctors in many regions, specialties, and life stages have improved their lives.

Some think, “Oh sure, he can take some time off or go part-time, but then later such and such will come back to bite him.” So, here is more of my story.

FTE Status Change

I am an employed specialist physician working part-time. Since I wanted a three-day-a-week schedule, I proposed a 0.6 FTE status. Going to 0.6 FTE means 60% of the hours of a full-time employed physician. I continue to see patients Monday, Tuesday, and Thursday. There are several benefits of taking Wednesday and Friday off each week. I get at least a three-day weekend EVERY weekend, and I never work more than two days in a row.

Considering I make a good six-figure income on this relaxed schedule, I do not have much to complain about.

I did overshoot the workload a bit though. I like to get an early start on the day, often 7:30 or earlier. Since I love what I do, I do not hesitate to add patients onto my schedule and spend plenty of time with them. I am still in high demand from my patients and referral sources. As a result, I work few days, but long ones. It does not bother me much since I know I will have days “off” during the week to recover.

The problem arose when someone added up all the work I do and my clinic hours. They decided I am actually a 0.7 FTE based on my hours, so they made that change on the admin side. They felt it would better reflect what I am doing. Part of me fears that they will hold me to a higher level of productivity and hours. So far, that has not been a problem. If it becomes an issue, I will likely have them change me back to 0.6 FTE.

The Pay Cut

All was going along well until 2020. Our network took a huge financial hit during the Covid-19 shutdown. My hospital faced increased staffing and supply costs and fewer lucrative elective cases. I’m glad to say my employer weathered the storm. But there were a few hits along the way. They stopped matching our 401k. And there was a physician-leader “reduction in force.”

When I cut back, I had dropped my administrative work (medical directorships). If I hadn’t, I likely would have lost that work in 2020 as part of the cost-cutting. 

Furthermore, my employer consulted outside compensation experts. The consultants determined that I was overcompensated.

Long story short: I took a $40K pay cut. Many doctors would have found that change unacceptable and unsustainable. I focused on the fact that I am not required to pay back all that excess compensation.

Due to the cut, we are investing less with each paycheck. But we felt no dip in our current spending. That is one of the many benefits of spending less than you earn. I am still able to fully fund a 401K, 457b, Roth IRAs plus taxable accounts.

During the early days of the pandemic, physician fears and anxieties skyrocketed. Many of my colleagues were shocked and scared that they may face a pay cut or termination. The crashing stock market and personal health fears made things worse. Many doctors and nurses feel they have no choice but to work as required, even with inadequate PPE. They need a paycheck. 

That highlighted to me the endless benefits of having reached financial independence (FI). I would have several options to serve my roles in a safe and appropriate manner.

Benefits of Part-Time Work

I continue to look forward to my nonclinical days. Out of every 7 days, I work 3. So, most days, I am off. There is time to recover from the stress of my workdays. 

I enjoy my regular days off during the week. It allows for my own dental and doctor visits. I am also free to meet my mother or a friend for lunch or go for a walk on a Friday afternoon. Those breaks are so restorative.

When I do take an entire week off, I use up only 3 PTO or CME days instead of 5. Four or five-day breaks have minimal impact on my patient schedule if around a weekend. 

I enjoy being more available for my family. This last year has been quite challenging of course. My flexibility has helped us manage multiple family medical issues. My kids have been in a “hybrid” school schedule where they attend every other day. Although their schedule doesn’t match mine, it has been helpful for me to be at home four days a week.

When my son’s math grades took a dive, I was able to jump in with “Dad’s School” and teach him enough to recover. Although I was able to help this year, I am reaching the top of my knowledge level as he enters seventh grade. I’m hoping he can handle it from here on his own.

My wife and I have been blessed with a wonderful marriage. Still, I'm glad I downshifted my workload before it strained us too much. It has been a gift to spend time with her during the middle of the day without kids in tow. 

I continue to meditate, read, exercise and work on hobbies. Lately I have been writing more, learning technologies, and taking online courses. I find that personal growth enriching.

Challenges of Part-Time Work

Every choice in life has its downsides. That is true of working part-time too. Although I do not use the phrase “semi-retired” some think of me that way. Periodically rumors circulate among patients and staff about my imminent retirement. I assure them that is not the case, but some remain skeptical. 

They perceive my scaled down presence as less commitment or engagement. Nothing could be farther from the truth. I’m a much better doctor now that I have time to rest, study, think, and enjoy my patients.

There is also an undercurrent of jealousy. Many think it is not right that I could be so well-paid and yet enjoy what I do so much. They think they could not pull that off and so it all must be unfair. They work so hard and yet have no choice. Or so they think.

I had to adjust to having a boss after stepping down as medical director. I am out of the loop with policy and staffing changes. I have minimal say in clinic decisions. For the most part, I’m okay with that. It was a difference for me.

Looking Forward

I plan to continue the status quo. I love what I do and have a balanced life. An early full retirement is not something I long for. My plan is to continue working in this capacity for as long as I am able to. It is not based on a chronological age.

It is reassuring to know that if my job conditions change for the worst, I have options. I could take some time off, cut back more, or stop working completely. Financially we would be fine. And I now have a better idea on how to manage my time and interests without a rigid work schedule.

So, do I have any regrets about cutting back? Absolutely not! If I were given an ultimatum to work full time or not at all, what would I do? I’m not sure. I would not be eager to return to my days of long work, little balance, and creeping burnout. I was becoming a Crispy Doc and would not like to go back to that.