Financial Clarity for Doctors

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Corey Janoff and Rachelle Vanderzanden of Finity Group discuss pertinent financial planning topics affecting doctors and other medical professionals.

Episodes

Monday Jun 24, 2024

State of the US Economy

Monday Jun 24, 2024

In this episode, Corey Janoff and Rachelle Vanderzanden walk through some key economic indicators of the US Economy in early 2024. The media would have us believe things are going very poorly, but how do we interpret the data?

US Economic Indicators:

Inflation is the biggest issue people mention, but has decreased substantially to 3.4% year over year in April of 2024.
- When adjusting for wage increases, people are generally not paying more as a percentage of their income in 2023 for goods and services than they did in 2019.
Unemployment is currently going on 27 months of a lower than 4% unemployment rate. Which is more than a 50-year record!
Housing is challenging. Prices remain high and interest rates are high, which means prospective new home buyers will pay much more for a home each month than they would have a couple of years ago.
Many things cost less today as a percentage of income than they have in the past.
- In the 1950s many people spent more than 20% of their income on food. Today the average is under 10%.

There are many different things that make up the “economy”. It is always nuanced, but keep in mind that the media has a vested interest in keeping your attention. Doom and gloom grabs a larger audience than feel good stories. Be aware of what’s happening in the world, but focus on what you can control. Chances are, a lot of you are doing pretty well!

For more financial planning tips from Corey and Rachelle, find them on social media!
LinkedIn: @CoreyJanoff and @RachelleVanderzanden; Instagram: @CoreyJanoff and @VanderzandenRachelle; and 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 Registered Representatives of Cambridge Investment Research, Inc., a broker-dealer, member FINRA/SIPC. Advisory services offered through Cambridge Investment Research Advisors, Inc., a Registered Investment Adviser. Finity Group, LLC and Cambridge are not affiliated. Cambridge does not offer tax or legal advice.

Monday Jun 10, 2024

Increasing Your Luck Surface Area

Monday Jun 10, 2024

Rachelle Vanderzanden and Corey Janoff tackle some ways to increase occurrences and the impact of good luck (and decrease the impact of bad luck) in this episode of Financial Clarity for Doctors. There will always be things out of our control, and we might as well prepare for them the best we can.

How do you increase chances of “good luck” and decrease chances of “bad luck” in your financial plan?

Have some extra cash on hand for emergencies.
Work hard and be kind. If you have the support of the folks around you, they will often help things go more smoothly.
Take on less debt than you can afford.
Be aggressive with your savings.
Build some diversification into that plan!

Things will not always go as we plan. It’s important to have plans B, C, and D lined up just in case.

Monday May 27, 2024

Do You Feel Rich?

Monday May 27, 2024

In this episode of Financial Clarity for Doctors, Corey Janoff and Rachelle Vanderzanden talk about the moving goalposts of what it means or feels like to be “rich”. Such a loaded word! But how much you earn or have may not matter nearly as much as where you live or even your attitude. If we compare ourselves with some averages, it can put things into perspective a bit.

How do you even measure being rich?

Income – Keep in mind that many of our listeners are in the top 5-10% of earners in the US.
- Median household income was $74,580 in 2022.
- Only 12% of households earn above $200,000 per year.
- Only 2.6% of households earn above $400,000 per year.
Net Worth – This is a little harder to measure. You can look at the things you own/money you have set aside and then look at your debts. Early career physicians often have a negative net worth with the student loan balances, but many are able to build this fairly quickly as attendings.
Cash Flow – High fixed expenses (like mortgage, student loan payments, and childcare) can make things feel tight from month-to-month. Definitely does not make you feel rich.
Comparisons – Who are you comparing yourself to? A person making a median income with a median net worth, or your older colleagues at work who have had more time to grow their wealth.

Money is only one way to measure wealth. We can also look at things like health, time with family, and a sense of purpose. Even if you are not a top earner or a person with a large net worth, that doesn’t have to stop you from feeling rich. Is your glass half empty or half full? Listen for the full episode to hear more.

Monday May 13, 2024

Needs vs. Wants

Monday May 13, 2024

In today’s society, there are many, many things that we feel we need. But in reality, many of those things are not needed, they are wanted. To be clear, there is nothing wrong with wanting things! In this episode of Financial Clarity for Doctors, Rachelle and Corey will chat about how to differentiate between needs and wants in your life to help keep things in perspective.

This can apply in many areas of our lives including:

Housing – Yes, we all need a roof over our heads. But beyond that, how much house do you really need?
Transportation – Many people need a vehicle to get around in these days of suburban sprawl, but the kind of car you need is likely very basic (and not new).
Even food – Yes, we all need to eat, but you can spend a dramatically different amount of money on groceries depending on where and how you shop. Depending on where you live, even lower cost grocery stores offer some of the same high-quality foods.

There is nothing wrong with spending money on things that you want and enjoy. Where we run into trouble is when we overspend by telling ourselves we need something that we don’t. Housing is a great example, where we can decide we “need” a 2,500 square foot home when a 1,700 square foot home may be very livable. If you can afford that 2,500 square foot home – go for it! Just keep things in perspective!

Monday Apr 29, 2024

Are Rental Properties Right for You?

Monday Apr 29, 2024

In this episode of Financial Clarity for Doctors, Corey and Rachelle tackle a question they get from a lot of clients – “Is it a good idea to get into rental properties?” As with everything in financial planning, the answer is, “It depends!” There are a few questions you can ask yourself to help you decide.

When you are thinking about getting into rental properties, ask yourself:

Am I okay with the additional risk?
- Likely taking on debt you will have to pay yourself if you can’t rent out your property.
- Being responsible for potentially large home repairs.
- If the value of the home declines, you may owe more than it is worth.
Would the potential rental income of this property cover the costs of the mortgage, insurance, property management, taxes, and upkeep?
How long do I want to rent out this property and what are the tax implications if I sell it?
What else could I do with the down payment money instead of investing it in property? What am I giving up doing this?
- Additional retirement savings
- College savings
Do I want to deal with renters?

There are lots of things to consider when you want to get into real estate. It is very important to run the numbers and see if it’s a good fit for your finances and for your personality. Real estate is not right for everyone. Listen to the full episode to learn more and hear about how real estate can compliment your financial plan if you do decide it’s a good fit for you.

Monday Apr 15, 2024

Is Insurance a Scam?

Monday Apr 15, 2024

Many people avoid insurance because they believe it is a waste of money, or worst case, a big scam. In this episode of Financial Clarity for Doctors Rachelle and Corey talk about some of the reasons you may need insurance, and others most people can avoid.

First ask yourself: If this happened, would it be financially devastating to me or my family? If so, insurance is at least worth exploring.

You pay an outside company to share a risk with you. Simple as that.
- Their goal is to make money. This is a business.
- Your goal is to waste the least amount of money possible, but also to make sure if something big happens, it’s not all on you to figure it out.

Listen to the full episode to hear more about specific coverages that you may need, and others that you can almost always skip.

Monday Apr 01, 2024

Our Personal Financial Strategies Unveiled

Monday Apr 01, 2024

In this episode, peek behind the curtain of Corey and Rachelle’s personal financial plans. In social situations, it can be uncomfortable to pick your friend’s brains about how they approach financial planning, but on Financial Planning Basics for Doctors, we are an open book. Here, and probably in our personal lives more than we should be!

Rachelle and Corey will chat about how they approach:

Emergency reserves
Spending and cash flow planning
Debt management
- Do they pay extra on their mortgages???
Insurances
College savings
Retirement savings and investing
Tax planning
Estate planning
- Hint: They struggle to be on top of this just like everyone else!

The bottom line is that we practice what we preach. Savings, insurances, and proper debt management are important! We also want to make sure that our plans reflect our values.

Monday Mar 18, 2024

Some Things Never Change

Monday Mar 18, 2024

We often focus in life (and in this podcast) on the things that are constantly evolving. In this episode of Financial Clarity for Doctors, Corey and Rachelle discuss some of the constants in finances – the things you can anticipate AND address.

Some constants include:

How much you save matters.
The easier and more automated things are, the more you can do them consistently.
- Be prepared for the lazier aspects of the human personality!
Discomfort can be a great tool for learning and improving.
Diversification reduces risk.
There is a trade off between risk and reward.
Death and Taxes!

We can’t prepare ourselves for many things in life because we don’t know about everything! It makes sense to be cognizant of the things we DO know and act accordingly. We’ve talked about this before, but focus on what you know (and also what you can control).

Monday Mar 04, 2024

What if I Mess Up?

Monday Mar 04, 2024

In today’s episode, Rachelle and Corey talk about some of the scarier aspects of financial planning. As we approach tax filing, retirement savings, and investing, there is often the nagging worry in the back of our minds. We don’t want to mess up and get in trouble or derail our financial plan. With potential errors, there are often ways to avoid pitfalls and even make corrections when needed.

A few examples of potential missteps:

Taxes! Everyone is worried about this right now because it’s that time of year.
- For example, if you forget to record a Traditional IRA contribution for your “backdoor” Roth, you may end up paying taxes on an amount you shouldn’t have! BUT you can file an amended return.
- Many tax errors are fixable with an amended return, but depending on the error you may have some penalty or late payment taxes.
- If you’re really worried about it, it’s worth seeking the assistance of an accountant.
- Betting big on something risky or more volatile…. You can definitely lose money this way, and with riskier investments it’s a good idea to treat those like gambling. Maybe throw a little money that way for fun, but that’s about it.
- Not saving enough is probably the biggest risk here, but saving more is a great solution!
House purchase gone wrong.
- Moving to a new city/job and buying a house immediately is risky.
- If you end up needing to move, you can sell the home, but likely at a loss. Or you can potentially keep it and rent it out.
- In the grand scheme of things, this is not ideal, but also something you can likely recover from.

There are so many other examples in this episode! There are lots of errors we can potentially make, but also many ways to avoid or fix them when they happen. Listen to the full episode to hear more.

Monday Feb 19, 2024

Room for Error

Monday Feb 19, 2024

In this episode, Corey and Rachelle discuss a few ways you can leave room for error in your financial plan. Nothing goes perfectly! Buffers in various aspects of your financial life can go a long way toward helping you achieve your goals.

“Room for Error” can mean a lot of different things:

Extra cash on hand! This may seem inefficient, but even some hugely successful companies do this.
- When Bill Gates headed up Microsoft, they kept enough cash on hand to keep the company afloat for a year without revenue.
- Ideally, you have enough to at least cover your bills for three to six months.
Wiggle room in your monthly spending.
- If you can spend less than you’re making, you have room in the budget for the unexpected.
Boring, but very helpful when it comes to the unexpected.
- Winter storms wreaked havoc this year with downed trees, burst pipes, and car accidents. Insurance is incredibly helpful in these circumstances.
Extra retirement savings. You may plan to work to Age 65, but there is no guarantee you will be able to. Saving more can put you in great shape to make changes if needed.

Spending every cent you earn and living life to the fullest may be a lot more exciting, but it can also cause unnecessary stress. Having a little “extra” set aside can help buy you some peace of mind. That is a huge part of financial planning!