Financial Clarity for Doctors

College Savings Revisited

Rachelle Vanderzanden and Corey Janoff revisit the topic of saving for college in this episode of Financial Clarity for Doctors.  We walked through some basics on this topic a few years ago, but things change over time! 

Some of the topics covered include:

• Discussing how you would like to support your children with higher education. Establish some goals!
• The increasing costs of higher education.
• Savings ahead of time vs paying out of pocket as expenses arise.
• Different types of accounts that can be used to fund education.
  • Recent changes for 529 college savings plans.

Tune in for more on ways to save and recent developments in college savings planning.  Keep in mind that this may be one of many financial goals, and one important step is to make sure you understand where this fits on your priority list.  There are loans for school; there are not loans for retirement.

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.

What if You Need to Decrease Savings?

In this episode, Corey and Rachelle talk about when and how to potentially decrease your savings.  We spend a lot of time talking about how to save more over time, but sometimes life happens and you may need to make some adjustments in the other direction.  Listen to the episode to learn more about how to thing strategically about making these adjustments.

Thoughts to consider from this episode:

• Assess why cash flow is tight: New baby?  New mortgage?  Is this a temporary change?
• Go back to your goals and move things around if needed. Don’t lose sight of what’s important to you.
• Review your spending to see if you can make any changes there BEFORE reducing savings. Can you potentially shift some short-term savings to long-term savings now?
• If you ultimately decide you need to decrease savings, start with non-qualified accounts. Try to keep maxing out retirement plans as much as possible.

Listen to the full episode to hear more about how to implement these strategies in your own plan.  If you do find yourself in a position where you need to decrease savings, try to start increasing those savings again as soon as possible.

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.

What You Need to Know About Social Security

In today’s episode of Financial Clarity for Doctors, Rachelle Vanderzanden and Corey Janoff discuss the ins and outs of Social Security.  Some of the history behind it.  How the benefits work. Will it be around in the future?

Some highlights from today’s episode:

• The history of Social Security and what it was designed for.
• How it is funded.
• How benefits are calculated and where to find your estimated future benefits.
  • Some examples based on when you start receiving Social Security benefits.
• The future outlook of Social Security.
• How to incorporate Social Security into your financial strategy.

Listen to the full episode to learn more!

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.

You're Inheriting Money; Now What?

In today’s episode of Financial Clarity for Doctors, Rachelle Vanderzanden and Corey Janoff discuss some basics of what it means to inherit money.  Projections show that there will be a large transfer of wealth from Baby Boomers to younger generations.  How will that be taxed?  What should you do with the money? 

Inheritance considerations discussed in this episode include:

• How do assets move from one person to another when someone passes away?
• What happens when someone passes away without a will?
• How are different kinds of things taxed when you inherit them?
  • There are big differences between retirement accounts, property, business assets, and non-retirement investment accounts.
• Do I need to worry about estate taxes?
• What should I do with the money I receive?
  • Review your goals before you decide!
• How do I know if the investments in accounts are appropriate for me?

This topic is complicated and there’s a lot to discuss.  Listen to the full episode to learn more!

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.

State of the US Economy

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.

Increasing Your Luck Surface Area

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.

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.

Do You Feel Rich?

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.

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.

Needs vs. Wants

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!

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.

Are Rental Properties Right for You?

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.

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.

Is Insurance a Scam?

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.

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.