Posts Tagged ‘cost of living’

From New York to Seattle to Santa Monica, “Private Practice’s” Addison has certainly traipsed across the continent in the past few years. When Addison Montgomery was first introduced to America, she was Derek Shepherd’s wife, tracking him to Seattle during a messy separation. In “Private Practice,” Addison has taken Santa Monica by storm and attempted to get her personal and professional life back in order. But is one of the world’s foremost neo-natal surgeons really able to keep up with the expense of living in Santa Monica, California? Even if she comes in with no credit card debt, you might be surprised to learn the truth.

Who is Addison Montgomery?

According to ABC, “Private Practice’s” Addison is a renowned neonatal surgeon and “board-certified OB/GYN, having completed fellowships in maternal-fetal medicine and medical genetics.” She moved to Santa Monica, California, in 2007, from Manhattan, by way of Seattle, where she ran a top-class NICU and was a star surgeon at Seattle Grace and in “Grey’s Anatomy.” According to Allied Physicians, neonatal medicine roughly brings in between $286,000 and $381,000 depending on the experience level of the doctor. In Addison’s case, and since she is regularly referred to on both “Grey’s Anatomy” and “Private Practice” as one of the top neonatal surgeons, it’s logical to assume that she makes approximately $300,000 to $350,000 a year. There’s never been any indication during “Grey’s Anatomy” or “Private Practice” that Addison has any debt, credit card or otherwise, and it appears that she is doing well for herself financially

What’s the Cost of Living in Santa Monica?

Santa Monica, the setting for the private practice that Addison works at, is one of the more expensive areas in the United States to settle in. According to Salary.com’s Cost of Living Calculator, the cost of living in nearby Los Angeles is 24.3 percent higher than in Seattle. So even for Addison, a skilled and renowned surgeon, it’s evident that she would have been making a bit less money after a move to California from Seattle.

In addition to the fact that Addison would be making a slightly smaller salary (also relative to the smaller workload she incurs at a small practice), Santa Monica’s home prices are considerably more than those in Washington. According to Yahoo Real Estate, the median home value in Santa Monica is $1,653,381. Remembering that Addison owns a large and beautiful home on the water, it’s reasonable to assume that her home probably cost in the vicinity of $2,000,000, and potentially more.

Could Addison Swing It?

Though it might seem like Addison is good to go, in fact, she’d be hard pressed to make it work while still saving money for retirement and expenses. Typically, you should spend no more than one-third of your gross salary on your mortgage. So, if Addison is making $350,000 a year, she wouldn’t want to spend more than $116,666 a year on her mortgage, which is approximately $9,722 a month. However, the Mortgage Calc calculator estimates that a home of $2,000,000 with a 30-year mortgage and a 5.75-percent interest rate would cost Addison approximately $11,671 a month. Even if she had money to put down on the house, it could be a tight squeeze for her to live and spend at will in posh Santa Monica society without the use of credit cards. Add in fancy parties, clothes, shoes and handbags, all of which seem to simply appear for Addison, and it’s pretty obvious that she’s either using a credit card or you’re watching television.

Even doctors and surgeons don’t have it easy these days. Before we’ve even talked about malpractice insurance and health insurance companies, a doctor making $350,000 might be hard pressed to keep up with the Joneses in a well-to-do part of town. Even a doctor making a decent wage might not be able to live up to television’s standards. Watch Addison’s spending and lifestyle on “Private Practice” with a grain of salt - even the best credit cards in her wallet might be getting more of a workout than it appears.

Kelly Herdrich

Washington state is home to such noteworthy companies as Starbucks and Microsoft. Yet, if Dr. Frasier Crane is any indication, the people making the really big money in the Pacific Northwest are working in radio psychiatry. Although no new episodes have been broadcast since May of 2004, the good doctor and his finances are still available through syndication and DVD.

From Beantown to the Emerald City

In 1984, the popular television comedy “Cheers” introduced psychiatrist Frasier Crane as Diane Chambers’ therapist and boyfriend. Dr. Crane, as played by Kelsey Grammer, was a fussy intellectual who became an integral part of the barfly collection at a local Boston bar.

“Cheers” closed its doors in 1993, but Crane, after a very messy divorce from his icy wife Lilith, pulled up stakes and made the move to his own series. “Frasier” was set in Seattle, also affectionately known as “The Emerald City.” Giving up private practice for show business, Frasier became an online personality at radio station KACL, doling out advice to troubled callers between commercials.

Deep Pockets and Huge Credit Lines

After settling in Washington state, Dr. Crane purchased a condo in the Elliott Bay Towers, a fictional building that’s located in a very desirable part of Seattle. A Century 21 Web site lists a comparable, real-life condo in the Emerald City with 3 bedrooms for the princely sum of $610,000.

If the good doctor plunked down $10,000 on his new pad and took out a 30-year mortgage with a fixed interest rate of 6.5 percent for the remaining balance, he would pay approximately $4,667 each month for that gorgeous view of the Seattle skyline. That’s not counting the monthly condo maintenance fees, which should bring his payment to over 5 grand, plus taxes and insurance.

Each week, Dr. Crane also was in search of some new piece of furniture or artwork by a famous sculptor or painter. It’s safe to assume that the radio shrink carries more than one platinum credit card, each with a pretty hefty credit line.

A Live-in Therapist, Housekeeper and Psychic

For the bulk of the series, Frasier shared his luxurious condo with his father Martin, a police officer who retired from active duty after taking a bullet in the hip. Dr. Crane reluctantly allowed his dad to move in with him and hired Daphne Moon, a physical therapist and self-proclaimed psychic, to help with Martin’s recovery.

Estimating that Daphne receives about $400 per week for her services plus room, board and paid vacations, Dr. Crane shelled out between $20,000-$25,000 per year for her salary. Depending on how good KACL’s insurance coverage was, Daphne was a significant, but rather attractive, expense.

Beluga, Beethoven and Ballantine

While his father loved nothing more than a cold can of Ballantine beer, Frasier and his brother Niles had very cultured palates. The Crane brothers favored fine wines, exquisite cuisine, and even shelled out $40 an ounce for good Beluga caviar in one notable episode.

Each day, Frasier and Niles met at least once at the Cafe Nervosa, a local coffee bar, for a caffeinated beverage plus a muffin or biscotti. These daily coffee talks cost approximately $10 per session, which is a staggering $3,650 in a year’s time, not counting the times that Frasier bought coffee for his producer Roz Doyle.

With his love of good food, wine and coffee, Dr. Crane gave his credit cards a workout at the upscale food emporiums in his neighborhood. Based on his eating habits, Daphne most likely purchased at least $500 worth of food for the household each week.

With a hefty mortgage, live-in help and premium food, Dr. Crane needed an annual salary of around $250,000 to avoid slipping into serious debt. That’s not a bad paycheck for someone who works only a few hours per day at an AM radio station and has plenty of time for coffee breaks.

Steven Bryan