Financial Clarity for Doctors

Let's Talk Money, Honey! With Carl Richards

On today's Financial Clarity for Doctors Podcast, we speak with popular author, Carl Richards, about having a discussion around finances with your spouse.  

Our conversation with Carl Richards is essential listening for anyone who is or plans to have a partner one day. It's never too early to begin thinking about or talking about your financial future. Our guest lays out some ground rules to help make this conversation productive, healing, and eye-opening.  

Family histories, lifestyle expectations, and identities all live within our views of finances, which can make the money discussion a personal and sometimes painful topic. Richards is here to show you how to start the money conversation. Provide you with rules like no shame, no blame, focus on what you can control, and time out. After listening to this podcast, you'll have the tools to begin the process. Remember, this is typically a process, not a one, and done conversation.  

Tip of the day: Take some time to think about your earliest memory with money.  

Carl Richards is a Certified Financial Planner™ professional and creator of the Sketch Guy Column, appearing in The New York Times since 2010. Carl has also been featured on Marketplace Money, Oprah.com, and Forbes.com. In addition, Carl has become a frequent keynote speaker at financial planning conferences and visual learning events around the world. 

Through his simple sketches, Carl makes complex financial concepts easy to understand. His sketches also serve as the foundation for his 

two books, The One-Page Financial Plan: A Simple Way to Be Smart About Your Money and The Behavior Gap: Simple Ways to Stop Doing Dumb Things with Money (Portfolio/Penguin). 

He currently resides in London with his family.  

  

You can find his articles for the NYT: https://www.nytimes.com/by/carl-richards 

  

How to Talk About Money: 

https://www.nytimes.com/guides/year-of-living-better/how-to-talk-about-money 

 

For more information on Carl Richards, you can visit his website https://behaviorgap.com/ or find him on Twitter at https://twitter.com/behaviorgap?lang=en 

 

For more financial planning tips from Corey and Rachelle find them on LinkedIn: @CoreyJanoff and @RachelleVanderzanden; Instagram: @CoreyJanoff and @VanderzandenRachelle; and Twitter:  @CoreyJanoffCFP and @RachelleFinance 

 

Discussions in this show should not be construed as specific recommendations, legal, or investment advice. Always consult with your investment professional before making important investment decisions. Advisory services through Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Securities offered through Cambridge Investment Research, Inc., a registered Broker/Dealer, Member FINRA/SIPC. Finity Group and Cambridge are not affiliated. 

On FIRE with Physician on FIRE

Why would you want to be on FIRE you ask?  Because in this case FIRE means Financial Independence, Retire Early.  That is a concept we can get behind and one that our guest Dr. Leif Dahleen is living and breathing.  Leif is the author of the popular Physician on FIRE blog as well as a retired anesthesiologist.  Retiring early might not be for everyone, but I think we are all striving for financial independence.  What can you do to position yourself to achieve that kind of freedom?

Go where the money is.  Especially early in your career, you can often make the choice to work in an area where doctors are in high demand, make more money, and sometimes even reduce your cost of living.  This gives you a great opportunity to jump start your retirement savings.

Embrace downsizing.  People tend to want to increase their lifestyles over time, but would you give up some creature comforts today in order to have more freedom?  Living in a less expensive house, driving a less expensive car, and saving on other big items give you a lot more flexibility in your budget.  And if you don’t need to support an extravagant lifestyle, then you don’t need as much in savings to get by in retirement.

It’s about having choices.  Not everyone wants to retire early but being able to work on your own terms can have a huge impact on your satisfaction with your work.  For some people, it is all about being able to spend more time with family while they are young, whether through early retirement or just a reduced work schedule.

Tip of the Day:  Try living on half of your take-home pay and saving the rest.  That may seem like a big sacrifice but for many physicians, it is still a substantial income.

Special thanks to Dr. Leif Dahleen of Physician on FIRE for joining us in today’s episode!  Proceeds from his website are currently supporting Covid-19 relief through the CDC, WHO, Meals on Wheels, and Get Us PPE.

Thanks again to the Financial Clarity Blog, our amazing clients, and the whole team at The Finity Group.

For more financial planning tips from Corey and Rachelle find them on LinkedIn: @CoreyJanoff and @RachelleVanderzanden; Instagram: @CoreyJanoff and @VanderzandenRachelle; and Twitter:  @CoreyJanoffCFP and @RachelleFinance

Diversification and asset allocation strategies do not assure profit or protect against loss. Past performance is no guarantee of future results. Investing involves risk. Depending on the types of investments, there may be varying degrees of risk. Investors should be prepared to bear loss, including total loss of principal.

Discussions in this show should not be construed as specific recommendations, legal, or investment advice. Always consult with your investment professional before making important investment decisions. Advisory services through Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Securities offered through Cambridge Investment Research, Inc., a registered Broker/Dealer, Member FINRA/SIPC.  Finity Group and Cambridge are not affiliated.

Navigating a COVID-19 Market w/Aaron Lewis MD

Nobody likes to see their investment portfolio decline in value. It doesn’t matter whether you are in retirement or just getting started with investing.  The recent COVID-19 pandemic caught the world off guard, however, unexpected market movements from time to time really should be…expected.  We discuss strategies for navigating this COVID-19 market with Aaron Lewis, MD – anesthesiologist by day, finance nerd by night. 

 

Get a Plan.  It is a lot easier to mentally prepare yourself for portfolio declines when you have a plan in place.  Preparing in advance for how you may feel (fear, anxiety) and having a strategy for when it happens can help you survive the stormy waters.  

Young doctors have the advantage of time.  The one thing you cannot get back and cannot create more of is time.  Younger doctors have the benefit of time on their side.  When stocks decline in value, it creates a great opportunity for long-term investors to purchase shares at a discount and potentially benefit immensely in the future. 

It’s normal to feel fear.  You wouldn’t be human if you didn’t feel fear.  Fear of “losing” money.  Fear of not having enough.  Fear of dying.  We all experience fear.  Acknowledge it, accept it, but in times like these, try not to act on it.   

 

Tip of the Day:  Focus on what’s important to you.  Odds are, we won’t be able to accomplish everything we want in life.  If we can achieve six or seven of our goals in life, chalk that up as a success.  Really focus on what’s important to you and your financial goals that maximize happiness.

 

Special thanks to Dr. Aaron Lewis, of MoneyNerdMD.com, for joining us in today’s episode!

Thanks again to the Financial Clarity Blog, our amazing clients, and the whole team at The Finity Group.

For more financial planning tips from Corey and Rachelle find them on LinkedIn: @CoreyJanoff and @RachelleVanderzanden; Instagram: @CoreyJanoff and @VanderzandenRachelle; and Twitter:  @CoreyJanoffCFP and @RachelleFinance

Diversification and asset allocation strategies do not assure profit or protect against loss. Past performance is no guarantee of future results. Investing involves risk. Depending on the types of investments, there may be varying degrees of risk. Investors should be prepared to bear loss, including total loss of principal.

Discussions in this show should not be construed as specific recommendations, legal, or investment advice. Always consult with your investment professional before making important investment decisions. Advisory services through Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Securities offered through Cambridge Investment Research, Inc., a registered Broker/Dealer, Member FINRA/SIPC.  Finity Group and Cambridge are not affiliated.

COVID-19: A Physician Spouse's Perspective

Peggy Haslach takes over the podcast this week with a special bonus episode. When I was young, mothers would say to their daughters, “Settle down and find yourself a good doctor to marry.” Today we are joined by Lara McElderry host of the “Married To Doctors” podcast who tells us that being married to a doctor is not the life of shopping and country clubs people seem to think it is. And she is very appreciative to the role she can play helping her doctor and other spouses of doctors.

The Spouses are the glue in the household.   The spouses of doctors often must put their own lives on hold while their spouses finish their residencies and fellowships. That often requires they put up with moving and the possibility that it will take some time to get to their “dream doctor job.” The purpose of the “Married To Doctors” podcast is to provide community and support to those spouses that share the similar experiences of being married to a doctor.

The Spouses are the CEO, CFO and COO of the household.  Often if the non-medical spouse in the household will be the ones that run the household both financially and operationally. These spouses not only need to keep the home running, but they need to learn how deal with specific issues that doctors and their families face.

The spouses are on the front line with their spouses during the COVID–19 crises.  Those doctors who are treating the COVID patients are putting their lives on the lines. Those doctors that are not treating  COVID-19 are clearing their schedules and are only working on limited cases and with limited supplies. This is putting stresses on the family. Doctors, nurses and all the professionals are truly our heroes right now.

Tip of the Day:  It is important that we all take care of ourselves so that we can be there to care for our families. We are all looking for good solid advice and support these days. Please share if you know or work with an expert at working with people like you.

 

If you’d like to learn more about Lara, her and her work, check out MarriedToDoctors.com.  You can also find a link to her MarriedToDoctors podcast: http://marriedtodoctors.libsyn.com/ and her new Positivity When Social Distancing Podcast: http://socialdistancing.libsyn.com/

For a video recording of this episode, check out the Finity Group’s YouTube channel.  And for more financial planning tips from Peggy Haslach, find her on LinkedIn: @PeggyHaslach or FaceBook:  Peggy Haslach – Finity Group, LLC

Discussions in this show should not be construed as specific recommendations, legal, or investment advice. Always consult with your investment professional before making important investment decisions. Advisory services through Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Securities offered through Cambridge Investment Research, Inc., a registered Broker/Dealer, Member FINRA/SIPC.  Finity Group and Cambridge are not affiliated.

Investment Risks Doctors Face

Investment Risks

There are many different types of investment risks.  The recent public health crisis and resulting market volatility has demonstrated one type of risk, but there are other things to consider with your long-term investments as well.  Try not to focus on one type of risk and ignore all the others.

Changes in price.  We have seen huge changes in the stock market almost daily lately.  Focusing on daily pricing can be very stressful.  If we are investing for long-term growth, we want to focus more on being allocated in a way that gives our money the opportunity to grow over long periods of time.  In the short-term that means your money could go either up or down.

Inflation.  Things get more expensive over time.  If your long-term money is tied up in an account that cannot increase in value, when you need it, you may not have enough to get by comfortably.

Fear of missing out.  Don’t get caught up in short-term returns and ignore what your real goals are.  Sometimes that hot stock pick is entirely inappropriate.

Risk of not meeting your goals.  Focus on being disciplined and saving enough.  We can’t control what the stock market is doing, but we can control how much we are spending and how much we are saving.  So focus on the things you can control and have reasonable expectations!

Tip of the Day:  Focus on long-term goals with long-term money and keep any money you need in the short-term in an account that is stable in value.  This means an FDIC-insured savings account!

 

Thanks again to the Financial Clarity Blog, our amazing clients, and the whole team at The Finity Group.

For more financial planning tips from Corey and Rachelle find them on LinkedIn: @CoreyJanoff and @RachelleVanderzanden; Instagram: @CoreyJanoff and @VanderzandenRachelle; and Twitter:  @CoreyJanoffCFP and @RachelleFinance

Diversification and asset allocation strategies do not assure profit or protect against loss. Past performance is no guarantee of future results. Investing involves risk. Depending on the types of investments, there may be varying degrees of risk. Investors should be prepared to bear loss, including total loss of principal.

Discussions in this show should not be construed as specific recommendations, legal, or investment advice. Always consult with your investment professional before making important investment decisions. Advisory services through Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Securities offered through Cambridge Investment Research, Inc., a registered Broker/Dealer, Member FINRA/SIPC.  Finity Group and Cambridge are not affiliated.

Backdoor Roth IRA

Despite the recent volatility in the markets, we still need to save for retirement!  Roth accounts can be a great source of tax-free income in retirement when used correctly.  Some high-income earners cannot fund Roth IRAs directly, but there is a strategy many folks can use to get money into this account.

Roth IRA.  What is it?  A Roth Individual Retirement Account (IRA) is an account you fund with money that has already been taxed, and then qualified withdrawals are not taxable.  In 2019 and 2020, you can contribute up to $6,000/person as long as you are below the income limits.  Depending on your tax filing status, if you make over anywhere from $0-203,000, you may not be able to contribute directly into this account.

The back door.  There are no income restrictions on converting money into a Roth IRA.  The back-door strategy involves opening a Traditional IRA, making your contribution into that account, and then converting the money into a Roth IRA.  It’s more complicated than that, so listen to the episode!

Tax filing. You must pay attention to your tax filing status and report contributions and conversions correctly.  If you don’t, you may end up overcontributing or paying taxes that you do not owe.

Tip of the Day:  You can make prior year IRA contributions up until the tax filing deadline for the year.  You have until 4/15/2020 to make 2019 contributions!

Thanks again to the Financial Clarity Blog, our amazing clients, and the whole team at The Finity Group.

For more financial planning tips from Corey and Rachelle find them on LinkedIn: @CoreyJanoff and @RachelleVanderzanden; Instagram: @CoreyJanoff and @VanderzandenRachelle; and Twitter:  @CoreyJanoffCFP and @RachelleFinance

Discussions in this show should not be construed as specific recommendations, legal, or investment advice. Always consult with your investment professional before making important investment decisions. Advisory services through Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Securities offered through Cambridge Investment Research, Inc., a registered Broker/Dealer, Member FINRA/SIPC.  Finity Group and Cambridge are not affiliated.

How Sleep Affects Burnout w/Brandon Peters

Dr. Brandon Peters took some time to speak with us about the importance of sleep and how it is a huge part of your overall health and how it can improve the quality of your work and help you avoid burnout.

Healthy sleep habits.  Most people need 7-9 hours of sleep per night, and it is important to do this as consistently as possible.  Develop a routine that helps your body be ready for sleep.  Cut out caffeine by mid-afternoon, limit heavy exercise two hours before bed, set aside work or other challenging topics an hour before bed, and cut out alcohol an hour or two before bed as well.

Stress and anxiety can affect your sleep.  Everyone worries sometimes.  Maybe try “scheduled worry time”.  List the things that are stressful and try to find some solutions.  Ideally you spend some time thinking about your stressors and finding solutions to a few of them during the day.  At night, you may not be able to do a lot about them.

The research.  There is no evidence that people get better at being sleep-deprived.  There is evidence that adequate sleep can provide benefits almost immediately (mental and physical).

Tip of the Day:  If you try to go to sleep early and sleep longer, but struggle to fall asleep and stay asleep, you may just be in bed for too long!

If you’d like to learn more about Dr. Peters’ research you can read more of his research on www.verywell.com.  You can also find more information about him at www.brandonpetersmd.com.

For more financial planning tips from Corey and Rachelle find them on LinkedIn: @CoreyJanoff and @RachelleVanderzanden

Instagram: @CoreyJanoff and @VanderzandenRachelle

Twitter:  @CoreyJanoffCFP and @RachelleFinance

Discussions in this show should not be construed as specific recommendations, legal, or investment advice. Always consult with your investment professional before making important investment decisions. Advisory services through Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Securities offered through Cambridge Investment Research, Inc., a registered Broker/Dealer, Member FINRA/SIPC.  Finity Group and Cambridge are not affiliated.

Single on Valentine's Day? Let's Talk Money!

Are you bored hearing Corey and Rachelle talk about financial planning for families and couples?   This one is for the lonely hearts (or happily single folks) out there on Valentine’s Day!

Don’t ignore insurance:   It’s not just for families.  Disability insurance protects YOU.  It’s your ability to earn an income and work toward your own goals that you should be protecting.  If you plan on having a family eventually, it can also make a lot of sense to look into life insurance.  The cost is dependent on your age and health and any decline in health can make it more expensive or harder to get.

Take advantage of that single status.  Kids and spouses can drag you down (financially)!  If you are single and have fewer financial responsibilities, take the opportunity to get a head start on paying off student loans or saving for retirement.

Pay attention to your tax bracket.  Higher income can push you into a higher income tax bracket much more quickly when you file as a single person.  This can make it even more beneficial for some folks to do pre-tax savings into a retirement plan at work, which reduces your taxable income.

Tip of the Day:  Revel in your flexibility and freedom and make financial decisions that help you reach your goals.  Be selfish!  It’s all about you.

For a video recording of this episode and others, check out the Finity Group’s YouTube channel.  Be sure to subscribe to Financial Clarity for Doctors on your preferred podcast app to listen on the go!

And for more financial planning tips from Corey and Rachelle find them on LinkedIn: @CoreyJanoff and @RachelleVanderzanden or Twitter:  @CoreyJanoffCFP and @RachelleFinance

Discussions in this show should not be construed as specific recommendations, legal, or investment advice. Always consult with your investment professional before making important investment decisions. Advisory services through Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Securities offered through Cambridge Investment Research, Inc., a registered Broker/Dealer, Member FINRA/SIPC.  Finity Group and Cambridge are not affiliated.

Tax Planning for Doctors w/Ryan Kramer

With tax season finally here, we know our clients will come up with lots of questions for us.  We can tell them how to make a backdoor Roth IRA contribution, but most of the time we’re going to tell you to ask your CPA or tax planner!  In this episode, we’re going to try to beat you to it and ask our favorite CPA for you.  That’s where Ryan Kramer comes in.

When should you start planning for taxes?  Right now.  Waiting until close to the tax filing deadline to start to come up with tax deductions is not going to work.  Remember to keep in mind taxes that you will have to pay in retirement as well instead of just focusing on tax deductions now.

Retirement savings and taxes.  Some retirement plan contributions can reduce your taxable income and others can leave you with tax free income in retirement.  Which is more appropriate for you depends on what tax bracket you are in, and what your income may look like in the future (including retirement!).

Should independent contractors form business entities?  It depends!  This is a very complicated question with very complicated answers.  If you work locum tenens or as an independent contractor in some other capacity, touch base with a CPA and a financial advisor to find out what’s best for you.

When should you get in work with a CPA or other tax professional?  If you’re afraid you’re going to mess something up or just miss something, get some help.

Tip of the Day:  You can make Roth IRA and Traditional IRA contributions for the tax year up until the tax filing deadline (usually April 15^th), but if you are using the “backdoor” Roth strategy your tax filing will be much easier if you do it all within the calendar year.

Thank you for joining us, Ryan!  If you’d like to get in touch with Ryan Kramer, please feel free to reach out to us anytime.

For a video recording of this episode, check out the Finity Group’s YouTube channel.  And for more financial planning tips from Corey and Rachelle find them on LinkedIn: @CoreyJanoff and @RachelleVanderzanden or Twitter:  @CoreyJanoffCFP and @RachelleFinance

Discussions in this show should not be construed as specific recommendations, legal, or investment advice. Always consult with your investment professional before making important investment decisions. Advisory services through Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Securities offered through Cambridge Investment Research, Inc., a registered Broker/Dealer, Member FINRA/SIPC.  Finity Group and Cambridge are not affiliated.

Avoiding Burnout w/the Physician Philosopher

Getting paid more is not the solution to avoiding burnout.  Jimmy Turner, the Physician Philosopher, is here to help us get our financial houses in order so that we can work the way we want and the amount we want.

 

Burnout.    We all know this is a problem for a lot of doctors.  Financial insecurity can be a huge contributor by forcing people into work that they don’t enjoy for the sake of money.

What can you do?  Don’t increase your lifestyle the second you start as an attending!  Maybe give yourself a small percentage increase but use the majority to attack debts and build up your savings.  Having a lower debt burden and a buffer will give you more flexibility.  Focus on “not making things worse” by spending too much.

Flexibility.  If you’re in a good spot with your finances, you have a lot more flexibility to change things you don’t like at work.  Not a fan of taking those extra call shifts?  Don’t do it.  Hate your job?  Then find a new one – even if it pays less.

Be content now.  It makes sense to focus on goals, but not at the exclusion of enjoying the here and now.  There is no magic five years down the road that is going to suddenly make you happy, so learn to be happy with what you already have.

 

Tip of the Day:  If you can limit what you spend on unnecessary luxuries, you can spend more on the things that make you happy.  Chances are that’s money spent on things that give you more time, not stuff.

 

Watch a video version of this episode on Finity Group's YouTube channel!

If you’d like to learn more about Jimmy’s life and what he teaches, check out his website.  You can also find a link to his book on the website:  The Physician Philosopher’s Guide to Personal Finance.  You can also find Jimmy on Twitter:  @TPP_MD

For more financial planning tips from Corey and Rachelle find them on LinkedIn: @CoreyJanoff and @RachelleVanderzanden or Twitter:  @CoreyJanoffCFP and @RachelleFinance

Discussions in this show should not be construed as specific recommendations, legal, or investment advice. Always consult with your investment professional before making important investment decisions. Advisory services through Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Securities offered through Cambridge Investment Research, Inc., a registered Broker/Dealer, Member FINRA/SIPC.  Finity Group and Cambridge are not affiliated.