Corey Janoff and Rachelle Vanderzanden of Finity Group discuss pertinent financial planning topics affecting doctors and other medical professionals.
Episodes
Monday Nov 28, 2022
Monday Nov 28, 2022
If you watch the news or have tried to borrow money any time recently, you know interest rates have increased A LOT this year. New mortgages 30-year fixed mortgages are averaging more than 7%. Drastically different from the 2.5-3.5% you could get during covid. In this episode, Corey and Rachelle ask, “what should we do differently?”
It’s not all bad news!
- High-interest savings accounts have variable interest rates.
- If you don’t have one yet, you can set one up and likely get a 3% annual yield or more.
- Bond yields have also increased dramatically. More conservative investments now have more to offer.
- If you have an existing fixed-rate-mortgage, your home payment is much more affordable than it would be if you had to take out a similar-sized loan today.
New and variable-rate debts are the challenge.
- If you are in the market for a new home, you may need to adjust your budget or save a larger down payment.
- Run the numbers to see what fits in your budget and try not to stretch yourself too thin.
- Review your existing debts to see if any other items have a variable interest rate, and try to pay them off if the rates are getting too high.
- This can include home equity lines of credit and even private student loans.
- Prepare yourself if you have an Adjustable-Rate Mortgage. Educate yourself on when your rate can increase and how much it is allowed to increase.
- When thinking about new purchases, find out what your financing options before deciding to buy.
- It will be much harder to come across low interest financing.
- It may make sense to purchase more things in cash or even delay large purchases.
When things change, sometimes we need to adjust our plans and expectations. Review your own finances and goals to see if you can adjust anything to make your situation better. If you have questions, email us at podcast@thefinitygroup.com.
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
Thursday Nov 17, 2022
Thursday Nov 17, 2022
In this week's blog, we discuss the pros and cons of securing disability insurance as a resident or fellow.
Our weekly blog posts that can be found at www.theFinityGroup.com/blog, where you can also sign up for our newsletter to have our weekly blog post delivered directly to your inbox.
Monday Nov 14, 2022
Monday Nov 14, 2022
Once in a while, we have to “eat our vegetables” and talk about insurances. In this episode, Corey and Rachelle tackle long-term care insurance in recognition of long-term care insurance awareness month. Insurance conversations almost always revolve around things we would rather not think about, and this is no different. But most of us will have to deal with aging, and a lot of us will have to deal with the increased costs that can come along with that. Ignoring it won’t help!
So, what is long-term care?
- Medical and non-medical assistance to help a person unable to perform some or all activities of daily living. This could be at home or in a facility.
- It can be VERY expensive.
- Can live for a long time after needing care.
- A private nursing room costs an average of almost $8,000 per month.
- Seventy percent of people aged 65 or older, will need long-term care during their lifetime.
How does insurance for long-term care work?
- Usually, cannot get unless you are fairly healthy.
- Generally, set up with a maximum monthly benefit and/or lifetime coverage amount.
- Sometimes includes inflation protection, but not always.
- Can be an add-on feature to life insurance, can be a shared policy with a partner or an individual policy.
- Cost can potentially change after time, even after you have a policy.
Should you get long-term care insurance?
- Age is one consideration. Most policies only offered to those who are 40 or older. If you get too early, you may pay a lot for the policy over time.
- Wealth is another.
- For those who have saved a great deal and expect to have more money than they need to retire, you likely don’t need coverage, but may want it to protect that wealth for your heirs.
- If you have very little resources in retirement, you may qualify for need-based-aid (Medicaid), but you basically have to be destitute to qualify.
- For those that are in between, you may need some support to be able to afford long-term care without completely depleting your resources.
This is a complex topic and a complicated insurance product. Do lots of research when looking into this, and as always, let us know if any questions come up. You can always email us at podcast@thefinitygroup.com.
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
Thursday Nov 10, 2022
Thursday Nov 10, 2022
In this week's blog, we discuss strategies for investing when the market is down in value.
Our weekly blog posts that can be found at www.theFinityGroup.com/blog, where you can also sign up for our newsletter to have our weekly blog post delivered directly to your inbox.
Thursday Nov 03, 2022
Thursday Nov 03, 2022
This week's blog post dives into the purpose and benefits of tax-deferred retirement accounts and how they can be utilized in your retirement savings strategy.
Our weekly blog posts that can be found at www.theFinityGroup.com/blog, where you can also sign up for our newsletter to have our weekly blog post delivered directly to your inbox.
Monday Oct 31, 2022
Monday Oct 31, 2022
A few weeks ago Corey and Rachelle tackled teaching kids about money on Financial Clarity for Doctors. This week they dive into a few financial preparations that you can take on as a household when you are expecting. If this is you – get ready for some big changes!
A financial checklist for when you’re expecting:
- Review your insurances.
- Do you have enough disability insurance to fully-protect your income?
- Do you have enough life insurance? Protect earnings, but also economic value brought into the household by non-income-earning partners.
- Review health insurance options to decide on the best option for prenatal and postpartum care, but also well child visits.
- Review any short-term expenses including time off work and getting baby all set up.
- If possible, pencil in some extra for help when baby arrives. Cleaning, food, etc.
- Walk through a hypothetical budget for after baby has arrived. Pencil things in like diapers, but also childcare and college savings if that is a goal.
- Look into childcare EARLY. Waitlists can be long, and you don’t want to deal with that added stress later on.
- Discuss your goals for college savings, but don’t ignore your own goals. Your kids might be upset if you’re still working at Age 70, because you wanted to put them through school.
- Get a basic will and estate plan in place
- Specify who you want to care for baby if you are not able to do so.
- Make it official, preferably with an attorney.
When you bring a little one into the family, everything changes – both financially and in every other way you can think of. Keep in mind that you cannot “save up” to support a child long-term. It will be an ongoing expense, likely for decades. We all want to do what’s best for our kids, but make sure to prioritize your well-being too (financial and otherwise). Best of luck to you all!
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
Wednesday Oct 19, 2022
Wednesday Oct 19, 2022
This week's blog post dives into the factors that impact the cost of disability insurance.
Our weekly blog posts that can be found at www.theFinityGroup.com/blog, where you can also sign up for our newsletter to have our weekly blog post delivered directly to your inbox.
Monday Oct 17, 2022
Monday Oct 17, 2022
In this episode of Financial Clarity for Doctors, Corey and Rachelle chat about the whirlwind year we have had in the stock market so far. It’s easy to look back and explain stock market movement in hindsight, but much harder to predict in advance. But sometimes understanding the “why”, can help you avoid making poor choices – like selling when your portfolio is down 25%. Listen for a little bit of context.
Why is the stock market down?
- Why is the stock market down?
- The dynamic duo – inflation and interest rates
- To try to bring inflation down, the Federal Reserve raises the federal funds rate, which leads to higher interest rates across the board
- Stock prices go down, because the market thinks it will be harder for companies to make a profit with rates higher, but also because higher rates can lead to a decrease in jobs and/or wages
- Geopolitical risk
- International conflict increases energy prices, and creates some fear in the stock market, which can lead to some indexes declining
- Affects international and emerging markets stock pricing more than domestic stock
- Bottom line, part of this is the stock market trying to predict things that have not happened yet
- The dynamic duo – inflation and interest rates
- What is down? – Everything, but in different ways
- Bonds are down, but not as much as stocks
- Domestic stocks are down, with growth companies and small companies being hit harder than the tried-and-true big companies
- Developed international and emerging markets are down more than the aggregate domestic stock index
- This is why you want to be diversified. A well-diversified portfolio is still down, but less than if you were to double down on some of the higher risk/potentially higher return indexes
Keep in mind that nobody knows what will happen next in the stock market. Just because someone has been correct in the past, does not mean they will be in the future. If you are a long-term investor, it is important to stay focused on your long-term goals. Generally, that means being consistent, and not reacting too much to short-term performance.
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
Wednesday Oct 12, 2022
Wednesday Oct 12, 2022
This week's blog post is about the Public Service Loan Forgiveness program (PSLF) and whether or not you should pursue it.
Our weekly blog posts that can be found at www.theFinityGroup.com/blog, where you can also sign up for our newsletter to have our weekly blog post delivered directly to your inbox.
Monday Oct 03, 2022
Monday Oct 03, 2022
In this episode of Financial Clarity for Doctors, Corey and Rachelle jump into a topic that is near and dear to their hearts. Teaching the little ones about money! Money has been a taboo subject for too long. When we don’t talk about it, we fail to set our kids up for success. It’s important for them to understand, even at an early age, that every piece of clothing, every toy, even the roof of their head requires resources of time and money. There are many age-appropriate ways to teach kids about money.
Some teaching examples by age include:
- At any age
- Point out the cost of individual items.
- Talk about wants vs needs.
- Talk with them about the tradeoffs of time and money. If we work more, we have more money, but less time to spend with you. What do you think about that?
- Ages 5 and under:
- Sticker or token system for chores or good behavior. Can be exchanged for a reward of your choice.
- Ages 5 and up:
- Consider a small allowance.
- Discuss saving for something larger vs making smaller purchases.
- Open a savings account for them and give them interest credits.
- Play games that use money.
- If you have any accounts set up for them (like a 529) explain it to them and look at it with them periodically.
- Ages 12 and up:
- Consider a larger allowance and more responsibility for their own expenses. Give them a chance to manage their own budget with low stakes.
- Enter a stock market simulation contest.
Money is not everything, but it is a very important part of how the world works. Talking with kids about it on a regular basis will help them make better decisions when they are older, and you can’t look over their shoulder any 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