Financial Clarity for Doctors

PSLF: What Doctors Need to Know

Spencer Salvador joins us to talk specifics about PSLF and what doctors need to do to qualify for student loan forgiveness!

“Is Public Service Loan Forgiveness (PSLF) a good fit for me?” - This is one of the most frequent questions we get from residents and fellows and doctors new in practice.  Often followed by a statement that indicates they don’t trust the program.  That is understandable!  However, as the law is written today, it may be a good fit for many physicians.  It really just depends on your career path. 

What is PSLF?  “The PSLF Program forgives the remaining balance on your Federal Direct student loans after you have made 120 qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying employer.”

What are the main steps to qualify?  The above seems simple, but there are a lot of requirements in that one sentence.   A qualifying employer is generally a non-profit or government entity (academic institutions and many hospitals often qualify).   Qualifying repayment plans include income-driven repayment plans as well as the standard 10-year payment plan.  If you are unsure if you meet the requirements, check with someone!  You also must file the correct paperwork to verify that you meet the requirements.  The PSLF Employment Certification Form is a big one.   Make sure you file this each year.

Why have so few people been able to qualify?  There was a lot of misinformation about how to pursue this program from the beginning.   Many who thought they qualified did not have the correct loans (Direct) or were not in the correct payment plans.   For now, the law has not been changed and more people are working toward qualifying.

Tip of the Day:  If you are a doctor considering PSLF, we encourage you to educate yourself as much as possible and be proactive.  File the appropriate forms and check in with FedLoan servicing to verify that the number of qualifying payments you’ve made are being counted accurately.  If you are unsure PSLF is a good fit for your career, try to file the appropriate paperwork to keep your options open.

 More Reading:

• Federal Student Aid, Public Service Loan Forgiveness (PSLF)
• Salvador, Spencer.  Financial Clarity Blog:  How to Qualify for Public Service Loan Forgiveness

 Thank you to Spencer Salvador for walking us through some of the key steps of PSLF!

For more financial planning tips from Corey and Rachelle find them on LinkedIn: @CoreyJanoff and @RachelleVanderzanden or Twitter:  @CoreyJanoffCFP and @RachelleFinance.  Be sure to also check out Finity Group's YouTube Channel for video episodes of our podcast and other content.  

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.

Holiday Gift Giving

Happy Holidays to all our listeners!  This short episode highlights a few tips for not breaking the bank over the holidays and making the most of your time with loved ones.  We also have a video version of this one with us wearing our festive holiday attire!  Check it out on our YouTube channel: https://youtu.be/zrav8ejiHU8.

 

Tips for our listeners:

1. Young kids do not need extravagant presents, or even a lot of them! They love whatever they get (and in the case of Corey’s brother, even just an empty box as a child).
2. Plan ahead with your holiday shopping and you can be more thoughtful as well as spreading your costs over the year.
3. Some people don’t want or need presents! Think about giving the gift of your time or sharing an experience with them.
4. Don’t be tricked by sales and gimmicks! You are spending money, not just ‘saving’ money when buying something on sale.
5. Gift exchanges and group gifts can be great options. Less is more sometimes!

 

Wishing you all a joyous, low-stress, holiday season!

 

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.

Estate Planning Essentials w/Bob Kabacy

Estate Planning

Creating a will and other estate planning documents is not exactly fun, but it’s a gift to those you leave behind.  One thing we can do is make our wishes clear, so our loved ones can navigate a difficult situation a little more easily.

 

What is estate planning? At its most basic, an estate plan is a set of documents that help others carry out your wishes when you are incapacitated or have passed away.  Some of the main components include a will, documents that direct medical and financial decisions if you are incapacitated (medical directive and power of attorney), and potentially a trust.

Always name a guardian for your children. This is one of the main purposes of a will for individuals with minor children.  The courts will attempt to determine a guardian for your children in line with their best interests, but it may not be what you would have wanted.

Beneficiaries. Revisit beneficiary designations on investment accounts and insurance policies periodically (especially if things change).  If your will and the beneficiary on an account contradict each other, the beneficiary designation will typically be followed.

 

Tip of the Day:  There are lots of “do it yourself” services out there but having a guide through the estate planning process can help you make sure that you don’t miss things.  There may be things you don’t know that you don’t know.

 

Thank you to Bob Kabacy for joining us on the show.  Feel free to reach out to us if you’d like to get in touch with him or an estate planning attorney near you.

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.

Selling a Home w/Rick McDowell

Maybe you’ve purchased a home before, but have you ever tried to sell one?  Not as easy as you think!  Rick McDowell is back with a few tips to make it as painless as possible.

 

Your home has to look like someone else can live there!  When people walk into your home, they want to be able to imagine living there.  Keep it tidy!  Put away the things you don’t need, so there is more room in people’s minds for their own things.

Make your home as accessible as possible.  It might not be convenient, but people may need to look at your house at a time that fits THEIR schedule.  And you don’t want to be there!

Price it right the first time.  If a house is on the market for a while, buyers may think there is something wrong with your home.  Discuss strategies with your real estate agent.  It could be different depending on what kind of market you are in.

 

Tip of the Day:  In the words of Rick McDowell, “Clean. Clean. Clean. First impressions are best impressions!”

 

Huge thank you again to Rick McDowell!  Feel free to reach out if you’d like to get in touch with him or someone in his network in a city near you.

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. Securities offered through Cambridge Investment Research, Inc., a registered Broker/Dealer, Member FINRA/SIPC.  Finity Group and Cambridge are not affiliated.

Home Buying w/Rick McDowell

Thinking about buying a home but have no idea where to start?  Rick McDowell is here to help!  This is something that comes up for a lot of physicians early in their careers, so we wanted to put together an episode with a few tips and tricks.

 

Communication is key!  Have a clear outline of what your needs and wants are and communicate that with your real estate agents and your spouse.  You have to get on the same page with your expectations.

Your down payment is not the only cost to get into the home.  There are many fees associated with buying a home including appraiser fees, inspections, title insurance, ongoing maintenance, and taxes to name a few.  Be fully aware of the costs you are going to need up front.

Real estate markets are unpredictable.  If markets appreciate at three percent, you can recoup a lot of the costs of the purchase over about three years.  We don’t necessarily know what the real estate market will look like over a specific time period, so plan to stay in a home for a while.  Find something you love enough to own for at least a few years!

 

Tip of the Day:  Understand the costs of home buying and ongoing maintenance before making this huge decision.  Renting is not always throwing away money and buying a home is not always a good fit.

 

Huge thank you to Rick McDowell!  Feel free to reach out if you’d like to get in touch with him or someone in his network in a city near you.

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. Securities offered through Cambridge Investment Research, Inc., a registered Broker/Dealer, Member FINRA/SIPC.  Finity Group and Cambridge are not affiliated.

Divorce (2/2): What to Know Beforehand w/Blake Van Zile

Divorce – What to Know Beforehand

In this episode, we continue our discussion about divorce with attorney Blake Van Zile.  In the second part, we talk about some surprising things that come up in divorces, the affect of divorce on businesses, and what to look for in an attorney.  As well as a few funny anecdotes to break up the divorce-talk tension.

Unexpected things in divorce.  If you agree that one spouse can stay in the home, make sure that it is feasible financially.  One party may need to secure life insurance if they are responsible for child support or alimony.

Businesses in divorce.  If one or both spouses are business owners, decisions regarding the business often need to go through attorneys.  Often even a non-working spouse may have an interest in the business.

What do you look for in an attorney?  Someone you can talk to about everything - even the things that you said or did when very upset.  You need to trust them enough to be honest with them.

 

Tip of the Day:  When going through a divorce, revisit your estate plan to ensure that if something happens, your assets are distributed the way that you want them to be.

 

Huge thank you to our guest, Blake Van Zile.  Look her up on LinkedIn if you get a chance:  @BlakeVanZile

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, or legal or investment advice. Always consult with your investment professional before making important investment decisions. Securities offered through Cambridge Investment Research, Inc., a registered Broker/Dealer, Member FINRA/SIPC.  Finity Group and Cambridge are not affiliated.

Divorce (1/2): What to Know Beforehand w/Blake Van Zile

In our very first episode with a guest, we talk about all things divorce-related with attorney Blake Van Zile.  We loved talking about divorce so much that we had to break this one into two parts.  In this first part, we focus on some basics of divorce, child support and alimony, and prenuptial agreements.

What is the main goal in a divorce?  Trying to find a fair and equitable way to end a marriage.  This doesn’t mean you are going to get everything you want.

How do you prepare for a divorce?  Talk to an attorney before making any moves and know what your finances really look like before filing if possible.  Everything can be much harder to track down after you are in a divorce proceeding.

Child support and alimony payments.  Laws vary from state to state, but generally income is a big driver in child support and alimony calculations.  The duration of a marriage can impact alimony calculations as well.

The pre-nup.  If you have any significant assets, a pre-nup can be very advantageous for documenting what each partner is bringing into a marriage.  A pre-nup that is unreasonable may not hold up in court.

 

Tips of the Day (we couldn’t do just one!):

               Get your facts straight.

               Keep your receipts!

               Pets are not kids.  They are property.

 

Huge thank you to our guest, Blake Van Zile.  Look her up on LinkedIn if you get a chance:  @BlakeVanZile

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. Securities offered through Cambridge Investment Research, Inc., a registered Broker/Dealer, Member FINRA/SIPC.  Finity Group and Cambridge are not affiliated.

Finding a Balance

You can’t focus only on the dollars and cents.  Life is about making memories, and it’s important to find the right balance between your current quality of life and financial security now and in the future.

Make some goals.  We always want people to prioritize reaching their financial goals, whether that’s being prepared to retire early or paying down debt quickly.  You also need to prioritize experiencing the world.

Avoid burnout.  Of course you should work hard!  But not at the expense of being able to maintain a long and enjoyable career.

Leave room for a personal life.  For those of us with young families, keep in mind that your kids are only young once.  And you are only young once too!  Most people don’t get healthier over time, so make sure you leave a little room to do some exciting things while you have age and health on your side.

Tip of the Day:  Balance is key.  You can’t always make the fun choice, but you can’t always make the financially optimal choice either.

 

Thank you to the Financial Clarity Blog, our amazing clients, and the whole team at The Finity Group for providing support and inspiration.

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 or investment advice. Always consult with your investment professional before making important investment decisions. Securities offered through Cambridge Investment Research, Inc., a registered Broker/Dealer, Member FINRA/SIPC.  Finity Group and Cambridge are not affiliated.

4. Life Insurance Considerations for Doctors

September is life insurance awareness month, and we are diving in with some helpful tidbits.

Why life insurance?  There are lots of different reasons people consider life insurance including business loans, estate planning, and as a supplement to retirement planning.  Most people look into it to protect your families.  Whatever the reason, it is important to understand a few key things about how to get it and what it is.

How do I get life insurance?  For coverage outside of work, you generally provide certain medical details (and most likely complete a brief health exam!).  Life insurance companies will decide if they want to offer you coverage and how much it will cost by looking at your health, age, gender, and even hobbies.  The younger, healthier, and less dangerous you are the easier it is to get coverage.

What should I get?  That depends (our favorite answer).  If you have a young family and just want to make sure the kids are taken care of until they’re grown, a temporary or term life insurance product is probably the best choice.  You can usually get more of it for much less money.  Permanent life insurance can make sense for estate planning, business planning, and to build cash value.  Take it slow with this one!

Tip of the Day:  If you think you will need life insurance during your life, keep in mind that it will likely be easier to get and less expensive as a healthy young person.  So stop getting older.  And don’t jump out of any planes.

 

Thank you to the Financial Clarity Blog, our amazing clients, and the whole team at The Finity Group for providing support and inspiration.

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 or investment advice. Always consult with your investment professional before making important investment decisions. Securities offered through Cambridge Investment Research, Inc., a registered Broker/Dealer, Member FINRA/SIPC.  Finity Group and Cambridge are not affiliated.

3. Retirement Savings Strategies for Doctors

We discuss retirement savings strategies for attendings and resident physicians and ways to get to a point where you are investing an adequate amount for your retirement goals.