Financial Clarity for Doctors

Our Personal Financial Strategies Unveiled

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.

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.

Some Things Never Change

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).

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 I Mess Up?

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.

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.

Room for Error

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!

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.

Not Your Parents Financial Plan

Most people get a little advice from their parents once in a while.  A lot of times it’s great advice!  When it comes to financial advice, sometimes our parents may be advising based on the economic reality they faced, not the one you’re facing.  In this episode, Rachelle and Corey address some of the changes over time that have made financial planning different for our generation, and what may impact future generations.

Differences include:

• Where people save money and how they use credit or debt as a tool.
• Differences in housing affordability.
• Staggering student loan debt for many of you.
• A wide variety of retirement accounts and investment tools that are easily accessible to retail investors.
• Less access to pensions and concerns about the future of Social Security Income.
• And maybe the biggest difference – a willingness to talk about money! Not just with your parents, but with friends and colleagues as well at times.

The bottom line is that every person’s individual circumstances determine how we should approach paying down debt, saving for retirement, and many other financial goals.  Chances are, your situation is different than your parents’.  And different that your colleagues’ or neighbors’ for that matter as 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.

What is Direct Indexing?

Generally, Rachelle and Corey are big fans of keeping things simple on Financial Clarity for Doctors.  But in some situations, a little more complicated can be a lot more helpful!  For those in higher tax brackets, direct indexing can be a more tax efficient way to invest in the broader market than using mutual funds or ETFs.  In this episode of Financial Clarity for Doctors, learn a little more about it.

In this episode, learn:

• How indexes are a measure of the performance of lots of different companies in a particular category.
• How mutual funds and ETFs are designed to mirror that performance.
• The difference between investing in an index fund and direct indexing.
  • The index fund realizes gains and losses when it places trades to be more in line with the performance of the underlying index.
  • With direct indexing, you can choose if/when/what to buy and sell to minimize capital gains.
• The benefits of index investing and direct indexing.

This strategy may be more complicated than many people need in their financial plan, but can make a big difference in when and how you pay capital gains taxes, especially in large accounts.  If you have a large sum of money to invest in a brokerage account, definitely something to learn more about and consider.

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.

Reflect on Your Financial Plan in the New Year

The New Year is a great time to pause and reflect on your goals and values.  Your financial plan is a huge part of that!  In this episode of Financial Clarity for Doctors, Corey and Rachelle offer some suggestions of things to reflect on and how to use that to adjust.

What should you focus on?

• Worried about anything financially? - Start there!  This can be uncomfortable but is likely the most productive use of your time.
• Reflect on your spending and ask yourself if you’re spending money on the things you value.
  • Love good food? – Awesome!
  • Enjoy traveling, but not enough to feel like your $20,000 spend was appropriate? – Plan smaller or fewer trips this year.
• Double check your progress on debt repayment.
  • Knocking out credit cards?
  • Crossing your t’s and dotting your i’s for PSLF?
• Review your progress toward short-term savings goals like a home down payment.
• Add up how much you were able to save toward your long-term goals. Was it 10% of your gross income?  20%?  20% is often a good goal to work toward as a medical professional.
• Take some time to make sure you have enough insurance coverage for your current situation.
  • More kids and more income, may mean you need more life insurance for example.
• Speaking of kids, check your progress toward any college savings goals and other goals you may have for them.

This is a lot!  Sometimes you feel comfortable reviewing on your own, but this is also a great thing to do with your financial advisor.  If you review a bit on your own and have specific thoughts or concerns for your advisor, schedule a meeting and make some adjustments.  When you have a better understanding of how you’re doing, you can plan much more effectively.

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.

Predictions Sure to Be Wrong

In this episode of Financial Clarity for Doctors, Rachelle and Corey try to predict the future!  We know we’ll be wrong about lots of things, but it’s still fun to try.  From predictions about the economy this coming year to thoughts about Taylor Swift and aliens, this episode has a little bit of everything.

Prediction highlights include:

• Will the US economy be in a recession by the end of 2024 or not?
• Will the housing market finally slow down?
• What will happen to tax rates over the next few years?
• Will we continue to see good long-term returns in the stock market?
• And most importantly, are we going to meet some aliens here on Earth?

To be clear, we don’t know the answers to any of these questions!  Lots of people try to predict the future, but if they get it right, it’s probably just luck.  Humans are great at speculating though, and we are no exception.  Send us some of your predictions, and we can do an episode in the future about what we all got right and what we got terribly wrong.

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.

Gifting Thoughtfully This Holiday Season

For many of us the holidays are joyful, and for others they are stressful (realistically, a combination of both!) – family stuff, cold and flu season, anxiety about gift giving?  There is something for everyone!  In this episode of Financial Clarity for Doctors, Corey and Rachelle discuss some ways to approach gifting a bit more thoughtfully to reduce your stress around at least one aspect of the holidays.

Gifting with family and friends:

• When giving gifts to family and friends, make sure you establish reasonable expectations that work for everyone.
  • You don’t want to make competitive gift-giving a sport in your circle, creating stress and possibly spending more money than necessary.
  • With kids, redirect their attention to things that are not gifts. So many things to enjoy during the holidays!  Yes, they will want presents, but it doesn’t have to be the only thing that brings them happiness.

 Charitable giving:

• There is no right or wrong answer here, but if you are charitably inclined, this is a great time of year to gift.
  • Set a budget for gifting and then find causes that align with your values (Charity Navigator has a great search function).
  • Sometimes there are matching donation campaigns which make your impact larger.
  • You can involve family and/or kids! They can help you select organizations or even participate in activities like putting together cold weather kits for the houseless.

Giving is supposed to be about bringing joy to those receiving gifts, not stressing out the person giving the gift.  We can get back to that with a little thought.  Happy Holidays everyone!

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.

Investing During Geopolitical Uncertainty

The world is constantly in flux, sometimes in ways that are scary or violent.  This can sometimes cause us to reassess everything.  But it when it comes to your investments, that may not be the best strategy.  In this episode of Financial Clarity for Doctors, Corey and Rachelle chat about how to approach investing during times of geopolitical uncertainty.

Reviewing your investments:

• Take a moment to review the reasons you are investing. Is it for retirement in 20 years?  A home down payment in two years?
  • With a period of time like two years, ideally, you are protecting your dollars from the risk associated with the stock market (whether there is some global turmoil or not).
  • For your long-term money, if you don’t need to sell out of those investments soon, we don’t need to worry as much about what is happening in the short term.
• Put the current situation into perspective.
  • On a global scale, terrifying, heartbreaking, surprising things are happening every day.
  • Some of them affect us more than others, but the turmoil itself is not new.
  • For the stock market, it has weathered a lot of storms over the decades.
• Keep in mind that for long-term investors, time is on your side.
  • When Corey was born, the S&P 500 closed at 244.
  • When Rachelle was born, the S&P 500 closed at 162 (she’s older!).
  • On 11/15/2023, the S&P 500 closed at 4,502.88. That’s huge!
  • Focus on what you can control, and don’t let the rest affect your investments.

All that being said, you can (and maybe should) care about what’s going on in the world.  Just don’t necessarily make big investment decisions based on those events.

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.