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If you, as a mortgage holder, have money in an escrow account, you may see an escrow refund after an escrow analysis at the end of the year. It may not happen often, but an escrow refund check comes if there’s an excess amount in your escrow account. Regulations set by the Consumer Financial Protection Bureau (CFPB) allow the mortgage servicer to retain two months’ worth of your escrow payment as a cushion. Amounts greater than $50 above the cushion should be refunded to you. Escrow balances less than this amount can be retained in the escrow account for the next year or refunded to the borrower.

Escrow refunds generally come when there’s an expense that’s smaller than expected, such as a lower insurance bill or fewer taxes. Your mortgage servicer pays the lower amount and then, when the servicer conducts an escrow analysis, the difference will be refunded to you, typically by check. The funds can also come when an escrow account is closed, such as when the mortgage is paid off or refinanced.

Here, you’ll learn more about escrow refunds, including:

•   What is an escrow refund?

•   How is escrow overage calculated and dispersed?

•   When might you expect an escrow refund?

•   How long does an escrow refund take?

The Escrow Process 101

You might have heard the term “escrow” in a couple of different settings when you’re buying a home. First, an escrow account is like a savings account that is set up for holding earnest money after you make an offer on a house.

And second, a different escrow account is set up by your mortgage servicer after you close on the loan. It can manage your taxes, private mortgage insurance (PMI), and/or homeowner’s insurance. The second factor is most likely to trigger a refund.

Recommended: What Is an Escrow Holdback?

In its simplest form, the escrow process looks like this:

1.    The mortgage servicer sets up an escrow account.

2.    The borrower makes monthly payments to the mortgage servicer.

3.    The mortgage servicer deposits the portion of the monthly payment for the homeowners insurance, taxes, and mortgage insurance into an escrow account.

4.    The taxing entity, homeowners insurance provider, and/or mortgage insurance company send the mortgage servicer a bill.

5.    The mortgage servicer pays the bill on the borrower’s behalf.

6.    The mortgage servicer audits accounts every year to determine if there is an overage or a shortage.

7.    If there is an overage above $50, the borrower can be refunded that money. The servicer will alter the monthly payment lower for the next year.

8.    If there is a shortage, the mortgage servicer will modify your monthly payment to account for both the shortage in the last year and the increased cost for the upcoming year.

What Is an Escrow Refund?

An escrow refund occurs when you, as a mortgage holder, receive a check at the end of the year for the extra money you paid into your escrow account. This is a requirement of mortgage servicing.

When you start making monthly payments to your mortgage servicer, you’ll pay the same amount each month. This amount typically includes your principal, interest, property taxes, homeowners insurance, and PMI (if you have it). The portion designated for taxes, PMI, and homeowner’s insurance will go into your escrow account. This amount is saved until your bill is due. The mortgage servicer pays the bill and deducts the amount from your escrow account.

Every year, the mortgage servicer is required to conduct an escrow analysis. This is a process where the servicer looks at the deposits made by you as well as the bills for insurance and taxes. Adjustments are made, and if you overpaid, you get a refund.

Escrow Refunds at Closing

You also might be wondering, “Do you get escrow money back at closing?” The process for escrow refunds at closing is a little different.

•   Your lender typically uses the money from your existing escrow account to apply toward your down payment or closing costs.

•   Then, for the new escrow account opened by your mortgage servicer, you will contribute what are called “prepaid closing costs” to the account to fund your escrow account. If you end up paying too much, you’ll see an escrow refund check from your servicer after an escrow analysis has been performed.

Mortgage servicers like escrow accounts because it helps protect their investment in your home. When the homeowner’s insurance is paid, the lender can be assured there is protection for the home should anything happen to it. Likewise, when the taxes are paid, the lender doesn’t have to worry about the taxing entity placing a lien on the home.

Recommended: What Is Escrow?

When Might You Expect An Escrow Refund?

Mortgage servicers are required to complete an escrow analysis at the end of the escrow account computation year, according to Regulation X of the Real Estate Settlement Procedures Act (RESPA). After the yearly escrow analysis, you will receive an escrow account statement. This statement will show you the deposits and expenses for the year, as well as show you a projection of anticipated expenses for the upcoming year.

It will also notify you of changes to your monthly payment that need to be made. These steps help ensure that your mortgage servicer is able to pay your taxes and insurance in full from your monthly payment. It’s common for the amount to change a bit from year to year.

If the escrow analysis uncovers a surplus above the allowable cushion in your escrow account, you can expect a mortgage escrow refund within 30 days.

Here are some common scenarios where you might expect to see a refund from your escrow account.

Mortgage Payoff

When you pay off your mortgage or refinance with a new low interest mortgage loan, your mortgage servicer is no longer required to hold an escrow account for you. You may receive a refund from your escrow account for any unused funds.

Lower Tax Bill

If your tax bill decreases, that means the amount collected from your monthly mortgage payment over the year will be more than what is actually due. The excess amount in your escrow account could be refunded to you after escrow analysis.

Better Insurance Rate

If you change your homeowners insurance to a company that offers a better rate, you may be due a refund. If this happens, you’ll likely pay the higher premium that you had locked into your monthly payment for the year. However, once the escrow analysis is completed at year’s end, the savings will be apparent and you should receive your refund.

Private Mortgage Insurance No Longer Required

On many conventional mortgages, there may come a time when you don’t need to pay for mortgage insurance. Let’s say you were a first-time homeowner who put less than 10% on your house. When your home equity reaches 20%, you may be able to have the private mortgage insurance premium removed (depending on the type of mortgage you have).

This may happen in the middle of the year before your servicer expects it. Your monthly payment may not be adjusted until an escrow analysis is completed at the end of the year. After an analysis has been completed, you’ll likely receive a refund because you’ve been overpaying for that mortgage insurance you no longer need.

Recommended: What Is a Mortgage Contingency?

Purchase Overpay

If you overpaid for an escrow item when you closed on your home, the surplus can be refunded to you after an escrow analysis.

When You Won’t See an Escrow Refund

The part of your monthly mortgage payment that goes toward your escrow account is set at the beginning of the year. However, tax rates and insurance rates often increase during the year. When your tax or insurance bill is due, your escrow servicer will pay the larger bill even though there isn’t enough money in the escrow account to cover it. This may result in a negative escrow balance.

In the case of a negative escrow balance, the servicer uses their own money to cover the shortfall. To make up for the shortage, the servicer will make adjustments after completing escrow analysis and take steps to collect the shortfall. The adjustment will also account for the new increased amounts due monthly during the upcoming year.

How Soon Can I Expect a Refund?

For ongoing mortgage payments: Your escrow servicer is required to issue a refund within 30 days of discovering a surplus of $50 or more. (This surplus is above a two-month allowable cushion of escrow payments that your mortgage lender may hold.). Borrowers must be current on their mortgage payment, however, to be able to receive this refund.

If you pay off your mortgage: Your escrow servicer may refund the balance of your escrow account within 20 days. Or, if your new mortgage is with the same servicer, the servicer can apply the balance of the escrow account to a new escrow account with your permission.

The Takeaway

You may see an escrow refund coming your way if you’ve negotiated a better deal for your homeowners insurance, expect to pay less in taxes, or no longer need to pay PMI. It will happen automatically because your mortgage servicer is required to perform yearly escrow analysis. You’ll also receive a refund if you pay off your mortgage and possibly when you refinance. Once that happens, the servicer has 30 days or less to refund the money you’re owed from your escrow account.

If you need a reliable mortgage partner, consider what SoFi Home Loans have to offer. With competitive rates, low down payment options, and dedicated loan officers, you can be assured you’re in good hands.

When you’re ready for a new mortgage, a refinance, or a home equity loan, SoFi is here to help.

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Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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When it comes to maintaining a strong financial plan and healthy financial behaviors, our brains can sometimes work against us. Behavioral biases, mental traps, and neural wirings can all get in the way of setting and meeting financial goals.

Consider recency bias, which is the tendency for people to look to recent events to make decisions about the future. Just because a stock has skyrocketed recently, that doesn’t mean its upward trajectory will last forever. In fact, jumping into the market during a rally could mean you end up buying when prices are high, right before investors bail and prices fall.

Another mental tendency to consider: ego depletion. It’s the idea that people can only exert their willpower for a limited time, and after that, it’s harder to practice self-control. If you have an important financial decision to make, it may make sense to wait until you are no longer feeling depleted.

Here’s a closer look into the ego depletion theory, what it could mean for your finances, and how to overcome it.

What Is Ego Depletion?

The concept of ego depletion hinges on the idea that our willpower reserves are finite, and when we exert self-control for too long, we use up those reserves. Once those are depleted, it is harder to exert self-control, and we’re more likely to make poor decisions.

The term was coined by American social psychologist Roy Baumeister in the late 1990s, though the idea of ego depletion has become popular in recent years. This may be in part because it makes sense intuitively. For example, the experience of eating a healthy breakfast and lunch only to get home from work and eat a bag of chips for dinner is pretty easy to relate to.

However, not everyone agrees with the concept of ego depletion. Some scientists report a lack of consistent data to support the idea. Instead, they have found that motivation is not finite. Rather, it can be subjective, and there are ways to increase it. That can be a good thing as you begin to set long-term financial goals.

Causes of Ego Depletion

There are a variety of factors that may play a role in ego depletion.

•   Low blood sugar. If you haven’t eaten and your blood sugar has dropped, it may be more difficult to exert willpower.

•   Emotional distress. Temptations may be harder to resist if you’re experiencing a state of mental anguish.

•   Unfamiliar tasks. If you are doing something for the first time, you may need to exert more mental energy, which can lead to ego depletion.

•   Lack of choice. If you are forced to do a task not of your choosing, you may be more likely to become depleted.

•   Illusory fatigue. If you think that a task will be mentally tiring, you may experience ego depletion faster. In other words, ego depletion happens more often when you expect it to. If you think a task won’t tax you too much, you may be able to exert more self-control.

•   Cognitive dissonance. Situations in which you do or say something that contradicts your beliefs can tire you out and diminish your self-control.

•   Variable heart rate. Those who experience variable heart rate have been found to have less self-control.

The Effect of Ego Depletion on Your Finances

If tasks that require self-control weaken your willpower, you may be less likely to make good decisions when you experience ego fatigue. When it comes to your finances, for instance, you may be more likely to spend money on things that you can’t afford.

Ego depletion could also mean you’re less equipped to make important decisions, such as how to invest your money. For example, if the market is experiencing a downturn, you may find yourself more prone to panicking and potentially pulling out your money. But in doing so, you’ll lock in losses and potentially miss out on a subsequent upswing.

Ego depletion could also mean you miss important deadlines, such as deadlines for funding your 401(k) or IRAs, or tax deadlines.

Recommended: Key Terms to Improve Your Financial Literacy

How to Overcome Ego Depletion

Luckily, there are ways to overcome ego depletion and improve your money mindset.

Get Enough Sleep

Lack of sleep makes self-control difficult. Sleep counteracts fatigue and helps reset your willpower reserves, so practice good sleep hygiene. Go to bed at a consistent time. Make sure your bedroom is quiet, relaxing, and dark. Avoid large meals, caffeine, and alcohol before bed.

Manage Stress

Managing stress can help you address the causes of ego depletion as well as its effects. Consider strategies such as deep breathing, mindfulness exercises, eating healthy, and consistent exercise.

Set Goals

Clear financial objectives and the steps you need to reach them can help overcome ego depletion. Consider using SMART goals, or goals that are specific, measurable, achievable, relevant, and time-bound. With these in place, you’ll know what you need to do to accomplish your objectives, and you’ll also be less likely to make moves that stray from your plan.

Plan for the Long Term

Long-term financial plans take your goals, risk tolerance and time horizon into consideration. They are built to account for the natural cycles of volatility. With a long-term plan to refer to, you may be less likely to make rash decisions in the short term, such as panic selling when markets are down or buying when market prices are peaking and may be nearing a fall.

Recommended: Guide to Money Affirmations

Tools to Help Your Reach Your Goals

There are a variety of tools out there that can help you set and meet your goals and make financial freedom a reality. It’s worth shopping around to find the ones that work best for you and you’re more likely to stick with.

One to consider: a spending app, which can help you set up a budget, categorize and track spending, make bill payments on time, and track your credit score.

The Takeaway

The idea of ego depletion centers around the idea that when we exert self-control for too long, we use up our willpower reserves and are more likely to make poor decisions. Learning the causes of ego depletion is a first step in helping you head off rash financial decisions that may work against you. If you recognize that your willpower is fading, take a breather. And when in doubt, refer back to your long-term financial goals and plan.

If you’re looking to build your long-term financial plan, a money tracker app can help. The SoFi app connects all of your accounts in one convenient dashboard. From there, you can see all of your balances, spending breakdowns, and credit score monitoring. Plus, you can get other valuable financial insights.

Stay up to date on your finances by seeing exactly how your money comes and goes.

FAQ

What is the cause of ego depletion?

Ego depletion can be caused by a number of factors, such as emotional distress, fatigue, low blood sugar, or unfamiliar tasks.

What is an example of ego depletion?

An example of ego depletion might be spending the day hard at work and then coming home, sitting on the couch, and turning on the television instead of pursuing other healthier activities, such as going to the gym.

How do you deal with ego depletion?

There are a number of strategies to combat ego depletion, such as getting enough rest, managing stress, and setting and sticking to long-term goals.

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Photo credit: iStock/Delmaine Donson

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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Understanding the average salary of a profession can help you make a variety of important decisions, from what field you want to enter to where you want to live and work. In California, the average physician makes more than $200,000 per year. Knowing that, medical students have a better idea of what they could make when they get out of school. Likewise, physicians looking to relocate to a new state have a better sense of how their salary can change based on where they decide to move.

Here’s a closer look at how much medical doctors make a year in California, regional differences in salary, and the top-paying medical specialities in the state.

What Is the Average Salary for a Medical Doctor in California?

The average salary of a physician in the state of California is $229,420 per year, according to data from the U.S. Bureau of Labor Statistics (BLS). This figure doesn’t account for a physician sign on bonus, which some doctors receive. Interestingly, California is squarely in the middle when it comes to average physicians’ salaries, along with Oregon, Texas, Maryland, and New York. The average salary in California lags more than half of states, including Arizona, Florida, Wyoming, Kentucky, and South Carolina.

Though many consider anything more than $100,000 a good salary, California’s relatively low pay may come as a surprise to some. However, there are some possible explanations. For one, California spends the most on Medicaid among U.S. states. Medicaid — and Medicare, for that matter — both reimburse physicians at rates lower than their usual fees. Doctors who are seeing a lot of elderly or low-income individuals may see their incomes reduced.

Note that early in your career as a doctor, while you’re in your residency or fellowship, you’ll likely make considerably less than you will later in your career. Explore ways to get by on a medical resident’s salary.

You may also want to consider using a spending app, which can help you set financial goals and a budget and track where your money goes.

Recommended: Budgeting as a New Doctor

How to Become a Doctor in California

Doctors are health care professionals who are charged with meeting with patients, diagnosing their conditions, and managing their care plans. They perform tests and prescribe medications. And they must coordinate with a range of other health care professionals, including other doctors, nurses, and emergency medical technicians.
That’s a lot of responsibility, and as a result, it takes a lot of training to become a doctor.

First, you’ll need to complete a bachelor’s degree in a field that relates to medicine, such as pre medicine, biology, or biochemistry.

Next, you’ll need to go to medical school, where you will receive classroom and practical training to advance your knowledge in the medical field. Medical school is typically a four-year program. While in school, you’ll complete the first and second parts of the U.S. Medical Licensing Examination (USMLE). The average cost of medical school can be high, running more than $50,000 a year at private institutions.

When you graduate from medical school, you’ll enter a residency program that helps you choose a medical specialty. These programs usually last three years, and under the supervision of an experienced physician, you’ll work full time as a resident doctor. You’ll complete your residency by passing the third and final part of the USMLE.

After your residency, you can choose to complete a fellowship that gives you further training in the specialty you’ve chosen. Though fellows tend to make more than residents, their salary isn’t as high as new doctors. The good news is, there are ways to budget on a medical fellowship salary.

Finally, you’ll need to obtain a California medical license from the Medical Board of California. You can renew your license every two years, which requires 50 hours of continuing medical education.

Recommended: What Is the Average Medical School Debt?

Reasons to Become a Doctor

Becoming a doctor can involve a lot of challenges, but it can also be immensely rewarding work. Here are a few reasons you might become a doctor:

•   To help others: Doctors diagnose and treat medical conditions, helping to save and improve patients’ lives. They are often involved in ongoing treatment, ushering patients down the path to recovery. Being a physician is a people-centric profession that involves working closely with patients and their families to explain medical conditions and treatment options.

•   To work in the sciences: If you’re interested in a variety of scientific fields, from biology to chemistry to anatomy to pharmacology, being a doctor is a way to explore these subjects while also helping others.

•   To find purpose: The responsibility toward patients and coworkers and the ability to better people’s health and well-being often provide doctors with a sense of satisfaction and meaning in their work.

•   To become a teacher: Becoming a doctor requires a lot of schooling and ongoing training. Doctors may pass on this knowledge by educating patients on how to lead healthier lives, educating medical students in teaching hospitals, and supervising residents.

•   To have job security: The job outlook for physicians is relatively low, with the field expected to grow 3% through 2031. That said, there are still 23,800 openings for physicians projected each year, according to BLS data.

•   To make a good salary: The annual average wage for all workers in the United States is $58,260, according to the BLS — quite a bit lower than the $229,420 average annual pay for physicians in California.

Best-Paying Medical Doctor Jobs in California

The medical speciality you pursue in California will have a big impact on your salary. According to BLS data, here are some of the highest-paid physicians in California:

Psychiatrist

Psychiatrists help diagnose and treat mental disorders. Unlike psychologists, they are allowed to prescribe drugs for medical treatment.

Average salary: $305,290

Obstetricians and Gynecologists

OBGYNs provide medical care related to childbirth and diagnose and treat diseases of the female reproductive organs. They also specialize in women’s health issues like hormone problems, infertility, and menopause.

Average salary: $309,610

Anesthesiologist

Before, during, or after surgery, anesthesiologists administer anesthetics (which reduce sensitivity to pain) and analgesics (which act as pain relievers).

Average salary: $318,030

Cardiologists

Cardiologists diagnose and treat conditions of the cardiovascular system.

Average salary: $343,370

Radiologists

Radiologists use medical imaging techniques, such as x-rays, MRIs, and ultrasounds to diagnose and treat diseases and injuries.

Average salary: $345,100

Pathologists

A pathologist helps diagnose diseases by running tests on organs, tissue, and bodily fluids, such as blood.

Average salary: $350,980

Surgeons

Surgeons are medical doctors that may have to perform surgery, a procedure that physically changes a patient’s body.

Average salary: $351,580

Recommended: Starting (and Keeping) an Emergency Fund

The Takeaway

Being a doctor can be fulfilling, as it allows you to help people through work in the medical sciences. It can also be monetarily rewarding, and understanding average salaries can help you make decisions about where you want to live and what you want to specialize in. Though income varies by speciality, the average salary for physicians in California is $229,420 per year.

As you build your practice and earn a salary, a money tracker app can help you get your financial house in order. The SoFi app connects all of your accounts in one convenient dashboard. From there, you can see all of your balances, spending breakdowns, and credit score monitoring, plus you can get other valuable financial insights.

Stay up to date on your finances by seeing exactly how your money comes and goes.

FAQ

What is a doctor’s yearly salary in California?

In California, a doctor can expect to make $229,420 per year on average, according to data from the U.S. Bureau of Labor Statistics.

What is the highest-paying medical specialty?

Among the highest-paid doctors in California are pathologists, surgeons, and radiologists.

Who earns more: a dentist or a doctor?

In California, doctors tend to make more than dentists, who earn ​​$165,950 per year on average.

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Photo credit: iStock/Drazen Zigic

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

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No one wants to get sick while on vacation, but sometimes, the unexpected happens. Not only can falling ill on your vacation throw a major wrench in your travel plans, it can be stressful and scary, especially if you’re in a foreign country where you don’t speak the language and medical facilities may not be what you are used to back home.

The best thing you can do before you leave is to prepare in case you do get sick on vacation. Knowing what items and information to bring with you, where you can seek a doctor’s care, and how you might pay for unforeseen medical expenses can help provide peace of mind.

Read on to learn:

•   What illnesses are going around these days

•   Important items to bring with you in case you get sick on your trip

•   Where to turn for help and medical care if you fall ill

•   Self-care tips you can use if you experience sickness on vacation.

What’s Going Around These Days

Whether you’re traveling domestically or internationally, you’ll want to know what illnesses are circulating in your destination so you can protect yourself. For example, one of these precautions may be making sure you get the appropriate vaccinations or that your usual shots are completely up to date. That can help prevent you from getting sick on vacation, because who wants to spend their week at the Outer Banks or Oahu coughing and sneezing?

Currently, there are some illnesses currently going around that all travelers should be aware of:

•   COVID-19. Though we may not be hearing about coronavirus in the news every day, it’s still circulating around the world. According to the World Health Organization, SARS-CoV-2, the virus that causes COVID-19, continues to evolve and circulate.

•   Respiratory Syncytial Virus Infection (RSV). This common respiratory virus, which typically causes mild, cold-like symptoms, has been on the rise in the U.S. for over a year. In some cases, RSV can cause serious lung infections, which is particularly dangerous for infants, older adults, and people with serious medical issues.

•   Norovirus. The very contagious norovirus causes nausea, vomiting, and diarrhea. Talk about ruining a vacation! Cases have increased in the U.S., Canada, and the U.K. this year. You can catch norovirus from eating or drinking contaminated food or water or by touching a contaminated surface like a light switch or doorknob and then touching your mouth with unwashed hands. This germ has been known to circulate on cruise ships.

•   Polio. There are some global destinations where polio is circulating, including Canada, Israel, and the U.K. The Centers for Disease Control and Prevention recommends that, before embarking on international travel, people should be up to date on their polio vaccines. They also advise that adults in the U.S. who previously completed the full, routine polio vaccine series receive a single, lifetime booster dose of polio vaccine.

•   Strep A. If you’re traveling with children or teens, you’ll want to know about Strep A, a very contagious infection in the throat or tonsils caused by group A Streptococcus bacteria. Strep A most commonly causes strep throat but can also cause skin infections and scarlet fever, among other more severe infections. According to the CDC, cases of Strep A have increased among children in the U.S. A rise in Step A cases has also been reported since late last year in Australia and some European countries.

Why You May Get Sick on Vacation

Have you ever wondered, “Why do I get sick on vacation?” There are some very good reasons why you may start to feel under the weather or contract some type of sickness while traveling.

•   As mentioned above, if you travel to a destination where a certain illness is circulating, you might pick it up.

•   The fatigue and jet lag you may experience while traveling can potentially impact your ability to fight off various germs. According to the Sleep Foundation, lack of sleep can also affect your immune system, making you more susceptible to getting sick.

•   You can also get sick on vacation from eating foods or drinking water that may be contaminated. Doing so can result in traveler’s diarrhea and other serious conditions such as E. Coli and Hepatitis A.

•   You might dine on unfamiliar food that’s spicy or cooked differently than you are used to. This can cause gastrointestinal distress.

•   The risk of injuries may go up while you’re vacationing. Being unaware of your surroundings, engaging in higher levels of physical activity, or driving an unfamiliar rental car can all lead to accidents.

Things to Do Before You Leave

Besides the usual pre-vacation chores, such as packing and booking a dog or cat sitter (unless you’re traveling with your pets), you’ll want to add some items to your to-do list. Before you head off on your getaway, consider taking these steps to ensure you’ll have a healthier trip:

•   Check in with your doctor. Make sure you’re up to date with all of your vaccines and you get any mandatory immunizations if you’re visiting a country that requires them. If you have underlying health conditions, discuss with your doctor and get any necessary clearance from them that it’s okay to travel. Are you traveling with kids? Do the same with the pediatrician.

•   Contact your health insurance company. If you’re traveling abroad, find out if your plan covers any medical expenses you may incur in another country.

•   Look into getting traveler’s insurance. ​​This type of insurance protects travelers against any financial losses occurring during their trip. It can even protect you before you travel, for instance if you have an emergency, such as getting seriously ill.

You can find traveler’s insurance through individual companies, travel agents, and insurance comparison sites, but you may also be able to get it through your credit card. Many cards offer credit card travel insurance, often for free, to cover any medical expenses or trip mishaps such as lost luggage or an unexpected trip cancellation. Check with your credit card company to find out if it’s offered and what it covers.

Some travel credit cards and airline credit cards offer different types of travel insurance. This can wind up being a valuable aspect of credit card rewards.

•   Be prepared financially. Besides making sure you’ve got your credit cards, it’s a good idea to sock some money away in a travel fund account. You may need access to extra cash via your debit card if you end up with unexpected healthcare costs. Or you might need to stay an extra night at your hotel, be it in Baltimore or Boca, if you are too sick to travel.

•   Leave your medical information with loved ones. In case of an emergency, it’s a good idea for friends or family to have all your crucial medical information. Make a list of the medications you take, your doctors’ contact information, allergies you may have, your blood type, your health insurance details, and any other pertinent information such as specific health conditions you have.

Recommended: Credit Card Miles vs. Cash Back: Guide to Choosing

What to Pack in Case You Get Sick

Having certain necessities and creature comforts in your suitcase can keep your vacation from becoming miserable if you get sick. Here are things to bring with you to offer relief, peace of mind, and save you a trip to the pharmacy or a doctor while you’re away:

•   Medications: The last thing you want to do is leave behind your prescription medications. Be sure you pack them in your carry-on or purse instead of your checked luggage in case it gets lost. Double-check you’ve got enough to last throughout at least the duration of your trip.

It’s also a good idea to include some basic over-the-counter remedies too, including pain relievers, cold and flu medication, antacids, motion-sickness pills, antihistamines, and antidiarrheal and anti-nausea drugs.

Be aware that many countries have restrictions on what medications you can bring in through customs. The U.S. Department of State recommends visiting the International Travel Country Information page. There, you can find the contact information for your destination’s embassy or consulate and visit their website to learn what drugs or supplies may be prohibited.

•   Heating pad: Easy to pack in your baggage, a heating pad can ease cramps or sore muscles.

•   Medical supplies: In case of emergency, make sure you pack important medical items such as a medical alert bracelet or necklace, contact lenses or glasses, inhalers, EpiPens, diabetes testing equipment, and insulin supplies.

•   Hand sanitizer and/or antibacterial wipes.

•   Face masks: Experts say non-surgical N95s and KN95s offer the best protection. Have an ample supply of face masks on hand to wear on flights and in any other crowded environments, especially in places where COVID-19 rates are still high.

•   Water purifying or disinfecting tablets: These tablets can be used to kill harmful microorganisms in water. You can also opt for buying bottled water.

•   First-aid kit: Create your own with antibacterial or antifungal ointments, 1% hydrocortisone cream, a digital thermometer, bandages or adhesives, aloe gel for sunburns, insect bite anti-itch cream, and an antiseptic wound cleaner.

•   Health insurance information and other documentation: The CDC recommends having the following paperwork with you while you’re on vacation: copies of your passport, travel documents, all prescriptions, health insurance card, proof of any required vaccinations or shots, and a contact card. Your contact card should list phone numbers, email addresses, and street addresses of family members and other people designated as emergency contacts back home.

Self-Care If You Start Feeling Sick

In the event you begin to feel sick on your vacation, be honest with how you’re feeling. It can be tempting to try to ignore what’s going on so you don’t disrupt your trip, but you may only make things worse.

If your symptoms feel relatively mild, such as having the sniffles, sneezing, or mild indigestion, there’s probably no reason to rush to seek medical care. Hopefully, you’ve packed basic OTC meds and can treat your symptoms.

However, if you fall seriously ill or sustain an injury, it’s important to seek medical attention right away. Find a local doctor’s office, clinic, or hospital to get checked out. Talk to your hotel’s concierge to see if there’s a doctor on-site or one that makes house calls for guests. If you’re on a cruise, rest assured all major cruise lines typically have a ship’s medical center, staffed by credentialed doctors and nurses.

Tips on How to Deal If You Get Sick Overseas

Becoming ill while you’re visiting another country can be challenging. There may be language barriers and depending on your location, limited access to medical care. You may also feel unsure of the quality of healthcare you’ll get.

Here’s some ways you can deal with illness if you’re in a foreign country:

•   Seek medical care if you need it. It can be tempting to go without seeing a doctor because you’re afraid of the cost or you’re unsure of the country’s medical system. However, if you’re very sick or injured, you may not have a choice. Airlines have the right to refuse sick passengers so it’s best to get treatment before you go home.

•   Get in touch with your insurance company. Find out if they cover emergencies abroad, and see if they can refer you to a local healthcare provider.

•   Reach out to the nearest U.S. Embassy or Consulate. They can give you a list of providers and medical facilities in the area, help you find medical assistance if you’re seriously ill, inform your loved ones back home, and help transfer funds to you. The number 888-407-4747 can help you connect with a U.S. Embassy or Consulate while abroad.

•   Visit a public or government-run hospital if you’re worried about cost. Depending on which country you visit, medical care at public or government-run hospitals for tourists may be low-cost or, in rare cases, free, compared to a private one.

•   Search for a global clinic. The International Society of Travel Medicine provides online locations for clinics in more than 90 countries. These clinics offer counseling and medicines to help protect people while traveling internationally.

As mentioned earlier, you can also ask hotel management if there’s a doctor who makes house-calls. Don’t forget the power of networking either. Know anyone who lives in your destination country, or do you have a friend who does? Ask for personal recommendations. Your Airbnb host, if you have one, may also be able to offer help and suggest reputable doctors in the area.

Recommended: Guide to Saving Money on Hotels for Your Next Vacation

The Takeaway

Getting injured or sick during vacation is the last thing anyone wants. But if it does happen, preparation is key and can save you a significant amount of worry and stress. Knowing what to pack, where to seek medical help, and how to take care of yourself if illness strikes gives you a roadmap for what to do if your holiday takes an unhealthy turn.

SoFi Travel is a new service offered exclusively to SoFi members. Earn 2x rewards when booking with your SoFi Mastercard or debit card. Then apply those rewards to your next trip when you book through our travel portal. SoFi makes planning a getaway fast, easy, and convenient — perfect for people on the move.

SoFi, your one-stop shop for travel.

FAQ

How do I make sure I don’t get sick on vacation?

There are many ways you can avoid coming down with something while you’re away. Get adequate rest and sleep in the weeks and days before your trip, wash your hands frequently, and steer clear of other sick people whenever possible. Travel with any prescription drugs or over-the-counter medications you may need, such as pain relievers or antihistamines.

Is it normal to get sick on vacation?

Getting sick isn’t uncommon. The stress of traveling along with jet lag can impact your immune system, making it harder for your body to fight off some infections or viruses. Eating or drinking contaminated food and water can also cause you to get sick. Traveling in close quarters such as on a plane or a train, where there may be other ill people, can boost the chances you can catch something by touching a contaminated surface or just breathing the air.

If I’m sick before I leave, should I cancel my vacation?

You’ll definitely want to talk to your doctor before you make any decisions. But many health experts advise rescheduling or delaying your trip if you’re sick, especially if you’ve got a fever. While it might seem minor, even having a common cold may be a reason to rethink your vacation. Why? Flying can exacerbate symptoms of respiratory illnesses. Being sick can also endanger other passengers around you. You should absolutely not travel if you have tested positive for COVID-19, says the Centers for Disease Control and Prevention.

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Underperform ratings are assigned when a stock isn’t expected to do as well as the overall market. Some of the signs that a stock is underperforming include a drop in earnings, underperformance compared with the company’s industry or the benchmark index.

It’s important to keep in mind that underperforming stocks are not necessarily bad investments, and the concern over the potential downside doesn’t always justify a “sell” rating.

In addition, the price of a stock could be underperforming even though fundamentals are strong, giving the word “underperforming” a bullish connotation when referring to price.

What Is an Underperforming Stock?

When an investment analyst assigns an “underperform” rating to a stock this is thought to be less bearish than an outright “sell” rating.

A rating of “underperform” is also sometimes referred to as “weak hold” or “moderate sell.”

In this sense, stocks that have underperforming prices might be considered buying opportunities.

That said, the general definition is a bearish one, similar to the downward trends in a bear market. Meaning: an underperforming security is often one that most investors might want to keep an eye on, and possibly consider selling at some point.

Indicators of Underperforming Stocks

Just as “underperforming” can have slightly different interpretations, depending on the context, there are also many ways to determine whether or not a stock might be underperforming.

Underperforming stocks could be those that have more sluggish prices than their peers, the overall market, or a particular index.

Underperformance could be measured by earnings that lag behind competitors, dividends that haven’t increased, or any number of other economic metrics pertaining to the operations of a business.

And finally, technical or fundamental analysis indicators (those that appear on price charts) could indicate imminent underperformance.

Here are seven signs a stock could be underperforming — which are important criteria to understand when investing in stocks.

1. Falling Earnings

When a company’s earnings are declining instead of growing, this could be a sign of underperformance.

And even when earnings are growing, a stock could still be considered an underperformer if competitors in its industry are seeing greater earnings growth.

Alternatively, an earnings-positive stock could also be labeled “underperform” if a related index has outperformed the price of the stock.

For example, a tech stock listed on the Nasdaq exchange might have had earnings growth of 5% during the last quarter. But if the Nasdaq as a whole gained 10% during that time, an individual stock with 5% growth could be considered an underperformer.

The criteria of underperforming earnings can be compared to a stock’s industry, its competitors, or a related index. And earnings are not the only way to measure underperformance, although they are a common one.

2. Underperformance vs Industry

Stocks can also be said to be underperforming relative to their own industry. This method of gauging performance is often used with stocks that are in a new or highly specialized area of business.

One common way to measure performance in an industry is to look at a related exchange-traded fund that has a large market cap.

3. Underperformance vs Index

A common sign of underperforming stocks is their lack of gains compared with the broader market indices. After all, if a stock doesn’t outperform the market, what’s the point in holding it? Buying a simple index-based fund, e.g. a passive exchange-traded fund (ETF), aims to give the investor market returns over time.

It makes sense to qualify underperforming stocks by comparing them with an index that has some relation to their industry. For tech stocks, that might be the Nasdaq. A broader market index of large-cap U.S. companies would be the S&P 500.

Underperforming in comparison with an index might be the broadest interpretation of the word. A more specific metric of performance has to do with a company’s competitors.

4. Underperformance vs Competitors

Perhaps the most targeted metric of underperforming stocks might be their performance relative to industry peers. If a stock is seeing growth metrics that don’t meet or exceed those of some or all of its competitors, then it can be said that the stock is underperforming.

Companies that have a competitive edge that would be difficult for others to overcome are said to have an “economic moat” — a take on the moat, which makes it harder for people to enter a place.

In financial terminology, having an economic moat means that a company should be insulated from the possibility of its competitors stealing market share and reducing profits.

An example might be a company in the telecommunications or media industry that has the market cornered for a particular service like streaming entertainment or new wireless tech (meaning the business has a lot of customers in a certain area or little real competition). This could be considered an economic moat.

If a company has no moat and is underperforming relative to its competitors, this could spell trouble.

5. Declining Dividends

Another negative thing that tends to happen to underperforming stocks is when they cut or suspend their dividend (for dividend-yielding stocks, of course). This can happen when something called the payout ratio of a stock becomes unsustainable.

The payout ratio is simply the relationship of a company’s earnings per share with how much of those earnings get paid out to shareholders. If a company’s earnings per share are $1, for example, and the stock pays a dividend of 10 cents per share, the payout ratio is 10%.

When a company increases its dividend too much too fast, or earnings fall precipitously, the payout ratio might rise to a level that eats up all of the company’s profits (possibly as high as 100%, meaning all profits go to shareholders as dividends).

When this happens, companies might have to reduce their dividend, or in uncertain times suspend the dividend altogether.

During the financial crisis of 2020, many companies in some of the hardest-hit sectors like real estate investment trusts and retail wound up slashing or suspending their dividend payments.

6. Insider Selling

There’s no one more intimately familiar with the operations of a company than those who spend their days running it. So when insider executives sell shares, it might indicate that something about the company has taken a turn for the worse.

Of course, there are times when executives simply need to raise cash for personal or business reasons. Insider selling doesn’t always mean that a company is underperforming.

Still, looking at the actions of insiders who hold large amounts of shares can be an easy way to judge whether the near-term outlook for a stock will be bullish or bearish.

Most brokerages give users access to this data in a simple bar graph format. The amount of shares and their dollar value attributed to insider buying and selling will be displayed for each month, usually going back several years or more.

7. Moving Average Death Cross

While so far, the signs of underperforming stocks covered here have focused on fundamental factors, this final sign is purely technical (meaning it’s based on charts, not economic numbers).

The so-called death cross pattern happens when a short-term moving average (often the 50-day) moves below a long-term moving average (often the 200-day). This is the opposite of a “golden cross,” which involves a long-term moving average moving below a short-term one, which is a bullish signal.

A technical pattern like this suggests that a stock’s momentum may be faltering and that traders have taken a more pessimistic view toward the security. Once an indicator like this is confirmed, it doesn’t take much time for traders around the world to recognize and act on it.

A Common Denominator

These aren’t the only signs that a stock might be underperforming. There are many relevant economic and technical indicators not mentioned here. A common theme ties them all together, though.

Underperforming stocks are those that are not doing as well as some other related benchmark, or those that have been performing worse than their own historical precedent.

The Takeaway

Underperformance could be a sell signal or a buying opportunity. It depends on the context, but most analysts assign an “underperform” rating to stocks they think might not have a compelling reason to be bought at the moment.

Signs of underperformance can include a drop in earnings, lower performance when compared with industry averages or a benchmark index, as well as other factors like declining dividends. All that said, however, an underperforming stock doesn’t automatically signal that it’s a loser — buying underperforming or undervalued securities can sometimes present an opportunity.

Ready to invest in your goals? It’s easy to get started when you open an Active Invest account with SoFi invest. You can invest in stocks, exchange-traded funds (ETFs), and more. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here), and members can access complimentary financial advice from a professional.

For a limited time, opening and funding an Active Invest account gives you the opportunity to get up to $1,000 in the stock of your choice.

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