Any Kaiser (TPMG) docs here?

[fatlittlepig]

The gold card is priceless.

If that were true, no one would ever leave.

[WalterWhite]

I see that the home loan program for first time buyers offers up to 200k interest free for 10 years. Some of the mortgage lenders in the area that I've spoken to have mentioned something along the lines of the loan being forgiven (similar to a public service loan forgiveness) if you stay long enough. Is there any validity to that or is this a straight 10 year interest free loan that you pay back afterwards?

[fatlittlepig]

I see that the home loan program for first time buyers offers up to 200k interest free for 10 years. Some of the mortgage lenders in the area that I've spoken to have mentioned something along the lines of the loan being forgiven (similar to a public service loan forgiveness) if you stay long enough. Is there any validity to that or is this a straight 10 year interest free loan that you pay back afterwards?

You pay back the principal.

[StarTrekDoc]

There ARE location recruitment (and retention) bonuses that are made available at times that have a tail to them to payback if leaving early. These are offered in places like California's central valley to keep folk there instead of moving closer to the Bay over the years and avoid churn.

Kaiser is great for those who enjoy W2 employed work. One has to be able to buy into the mentality of that wholesale -- including Kaiser's best practices model.

If you're good with the Kaiser way, there's very few places that outperforms the pay+benefits package.

[Bthom86]

Hello fellow TPMGers

I have read through this entire thread and love the content that has been posted. I also work for TPMG and up for partnership this summer. I would love to get the group's input on the Class C share purchase.

Currently, the max price for class C shares stands at $118,490. My spouse and I are in a position to purchase all the shares ($158,490) from our savings from a brokerage account. It's clear to me that no one knows how the sausage is made in how TPMG provides a ~10% return on these shares. I am fairly early in my career and worry that TPMG won't be able to provide a 10% return 20+ years from now on an illiquid asset. No way to predict this but I imagine there is a ceiling to how much the cost of the shares can raise and what a reasonable doctor would pay to buy in. So what would you do...

1) Buy the max amount of shares (~$159k)
2) Buy the min amount of shares ($40k) and forego class C
3) Split the difference somehow

Thanks

[StarTrekDoc]

Welcome to the party.

If you're concerned about financial health, then the pension should be your concern more than the class c shares. Attend the yearly financial seminars that the auditors release. That gives a great overview of things and decisions on the other investment opportunities within the company

[fatlittlepig]

This is the most common question I get and the answer depends on many factors. If you have to borrow to buy the full A/B/C shares I probably wouldn’t. If you have the coin to buy the full enchilada, and you plan on sticking with TPMG, and you don’t have other debt to discharge I would do it.

Hello fellow TPMGers

I have read through this entire thread and love the content that has been posted. I also work for TPMG and up for partnership this summer. I would love to get the group's input on the Class C share purchase.

Currently, the max price for class C shares stands at $118,490. My spouse and I are in a position to purchase all the shares ($158,490) from our savings from a brokerage account. It's clear to me that no one knows how the sausage is made in how TPMG provides a ~10% return on these shares. I am fairly early in my career and worry that TPMG won't be able to provide a 10% return 20+ years from now on an illiquid asset. No way to predict this but I imagine there is a ceiling to how much the cost of the shares can raise and what a reasonable doctor would pay to buy in. So what would you do...

1) Buy the max amount of shares (~$159k)
2) Buy the min amount of shares ($40k) and forego class C
3) Split the difference somehow

Thanks

[tonyjerry]

Fatlittlepiggie can you elaborate on this? Do you think the returns are a sure thing?

[fatlittlepig]

Fatlittlepiggie can you elaborate on this? Do you think the returns are a sure thing?

My understanding is that they intentionally price the shares to increase every year. I’ve never met a single person who can really explain this process therefore who knows if it’s a sure thing. I joined when the C shares were created therefore I paid 40K, the full share value is now 150+ and we went through some tough times in addition to the pandemic in the interim.

[AR]

What is the difference between A, B, and C shares?

[spouseofdoctor]

This is the most common question I get and the answer depends on many factors. If you have to borrow to buy the full A/B/C shares I probably wouldn’t. If you have the coin to buy the full enchilada, and you plan on sticking with TPMG, and you don’t have other debt to discharge I would do it.

Hi! New here. My spouse works at TPMG and they are going through the process now. We're hoping to buy a home soon, so we're thinking that we'd go with just A&B and not C so we have the cash for a down payment.

We do have the cash to buy the A&B (40k), and we're going back and forth between financing it or just spending the cash on it. I understand that this choice isn't really TPMG specific. If any TPMG docs have been through a similar thought process, I'd like to hear your take.

[fatlittlepig]

Hi! New here. My spouse works at TPMG and they are going through the process now. We're hoping to buy a home soon, so we're thinking that we'd go with just A&B and not C so we have the cash for a down payment.

We do have the cash to buy the A&B (40k), and we're going back and forth between financing it or just spending the cash on it. I understand that this choice isn't really TPMG specific. If any TPMG docs have been through a similar thought process, I'd like to hear your take.

I would just cash flow it. It’s only 40K

[ROdoc13]

Hi! New here. My spouse works at TPMG and they are going through the process now. We're hoping to buy a home soon, so we're thinking that we'd go with just A&B and not C so we have the cash for a down payment.

We do have the cash to buy the A&B (40k), and we're going back and forth between financing it or just spending the cash on it. I understand that this choice isn't really TPMG specific. If any TPMG docs have been through a similar thought process, I'd like to hear your take.

If you're actively in the home buying process, may speak to your lender about impact of financing it versus paying cash. The interest rate from KaiPerm or similar was quite low and thus given inflation, I would invest the $40,000 and finance the loan, but financing might impact the amount you can borrow depending on other liabilities.

[fatlittlepig]

generally speaking if you have the cash to purchase the shares I would just buy them and not deal with the financing. if you don't have the cash then I think you have to ask yourself why you don't have the cash since this is a well anticipated expense that you have known about for three years.

[StarTrekDoc]

In most cases when eligible for shareholder most folk are in the accumulation/growth phase of their lives.

If so, Leveraged cheap loans should be used on investments as you can cash flow things within investment reasons.

Kaiser loans are cheap. The returns traditional outpace the loans easily. Get as much as you can. IMHO and finance it.