Finance

How doctors think about financial independence is dead wrong

Finance
July 7, 2021

A rough career transition in 2019 followed by the pandemic highlighted how I was still financially tethered to my job — after 10 years of practicing as a subspecialty trained radiologist, saving, maxing out my retirement accounts, and investing in the stock market and in real estate. Looking around, I saw other physicians in a similar predicament. After years dedicated to rigorous training, we were still trapped by “golden handcuffs.” …

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5 financial truths every resident needs to know

Finance
July 3, 2021

July 1st is here, which means it’s the start of a new residency year. For interns, things can be nerve-wracking and scary. You may wonder if you remember enough information from medical school and hope you arrive at the right place at the right time this week. For the senior residents like me, we are elated to be almost done with training, but we are also starting to focus on …

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Doctors beware: There’s a $400,000 target on your back

Finance
June 16, 2021

President Joe Biden recently signaled that a multi-trillion-dollar spending plan for our country should be paid for by the rich corporations and wealthy individual Americans who make over $400,000. Doctors fit the latter category and should tune in.

Beyond the government, the unique qualities of doctors make us a target for many who want to access our high income and our business revenue. Our passivity to these poachers places us at …

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5 tips to become a millionaire

Finance
May 8, 2021

1. Setting up automatic investments. The vast majority of young millionaires achieved their financial status by investing money. Unless they are a celebrity or were born into a wealthy family, they had to be diligent about investing money either in the stock market, a business venture, or real estate. You must do the same. One way to do this is by making your investments automatic. Have a certain amount of …

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The price I paid to be in medicine

Finance
April 20, 2021

A few weeks back, Match Day welcomed smiles and celebratory tears across the nation. This particular match season was fueled by a pandemic and virtual interviewing. I reached out to my friend who got matched to his top internal medicine residency spot in the Lone Star State.

“I’m ready to make some money,” he excitedly mentioned over our phone conversation. “No more filling in the blanks in FAFSA and piling additional …

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Why residents should invest in a 403(b) and a Roth IRA

Finance
April 19, 2021

As a young professional who is trying to build wealth, I invest money. Although there is a myriad of different investment accounts and strategies, I invest in index mutual funds through my employer-sponsored retirement plan and my own Roth IRA. Yes, I have both types of accounts. Let me tell you why.

I invest in my employer-sponsored retirement plan (which is a 403(b), which is very similar to a 401(k) because:

1. …

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8 estate planning mistakes for physicians to avoid

Finance
April 15, 2021

When I sat down to write this article, my thoughts immediately went to the tragic loss of one of my best clients, a physician who recently passed away after battling COVID-19. I remember him not only as an excellent physician but even more so as a great person.

Unlike many physicians I speak to in the course of my work, this client had the foresight to do some careful estate planning. …

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12 tax deductions physicians overlook

Finance
April 11, 2021

Recently, I was talking on the phone to a physician client of mine about the COVID-19 vaccine and how thrilled I was that everyone over the age of 30 is now eligible in New York, which meant I could now schedule my own appointment.

We discussed the current market, and just when I was about to end the call by wishing him a happy National Doctor’s Day, his younger son, who …

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Cost segregation: an underutilized strategy for physicians who own real estate

Finance
March 31, 2021

A gastroenterologist client of mine in Florida is very business savvy. From the beginning of our 12-year relationship, we planned to include real estate as part of his overall diversified portfolio alongside the equity investments in his retirement account.

Slowly but surely, with the savings leftover after deferring the maximum amount he could into retirement plans, he built up portfolios of real estate for income purposes that included buying an office …

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Physicians can practice medicine and build wealth through passive real estate investing

Finance
March 28, 2021

I am a trained neurosurgeon with decades of experience. However, I also have a passion for real estate.

So far, I have managed to amass a real estate investment portfolio of over $250 million in assets by working with our investors and co-development partners.

As a medical professional, I can relate to your current financial standing. You’ve managed to work your way into your current, high net-worth position(s) and are earning “good …

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Debunking the myth of the doctor car

Finance
March 14, 2021

Everyone knows about the doctor car. Doctors know about it. Non-doctors know about it. Other than the doctor house, it is the symbol of medicinal consumerism.

But today, my friends, I am going to completely debunk the doctor car myth!

What is the doctor car myth?

This car myth states that a doctor must have a fancy car to legitimize herself or himself as a physician.

To drive a fancy car is to show that …

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Pros and cons of 457(b) plans: What physicians need to know

Finance
December 27, 2020

There’s not a perfect financial planning vehicle in existence. Salary deferral plans, like many retirement plans and 457 plans, carry pros and cons. Many hospital systems have a combination of 401(k), 403(b), and 457 plans. The 401(k) is often designed for the employees who make under a certain amount, say less than $150,000 or so. Then the 403(b) with an option to contribute to a 457 salary deferral plan is …

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Negotiate your employment agreement after residency

Finance
December 26, 2020

A lot is happening when graduating medical residents are looking for employment after completing graduate medical education. They are finishing their residencies, taking the specialty boards, and trying to decide where they will be spending the rest of their lives. Considering a new job offer can be both exciting and stressful. It is natural in such circumstances to focus on what the job promises, where it is located, and how much it pays—and easy to overlook the fact …

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Understanding the business of medicine: How to pursue excellence in the medical field

Finance
December 15, 2020

Your success in the medical field is not solely contingent upon your clinical dexterity but often results from the mastery of various industry aspects. What separates a great doctor from a good doctor is their cognizance of both the clinical and business sides of medicine. The market, risks, and trends of medical businesses are a great resource for residents as they establish their place in medicine. Business management is a …

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Practical thoughts on pursuing a partnership track

Finance
November 23, 2020

A quick preview of any journal will note a plethora of physician jobs spanning the country. Many of these jobs offer a partnership track and promote a democratic philosophy.

As someone who has worked on both sides of the equation, I wanted to share a few thoughts. You may not agree with all, but here they are, nonetheless.

First, consider your long-range plan. While it’s exciting to contemplate a first job while …

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What to do financially when you’re a doctor getting a divorce

Finance
November 11, 2020

I remember reading a post recently on a Facebook physician group that involved a cardiologist who asked for help on how to manage her finances after a divorce.

The pertinent aspects of this situation involves the physician being left with essentially nothing in retirement savings. She is mid-career with children and wants an option to reduce her schedule eventually to spend time with her children during the weeks she has custody. …

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How doctors are losing money every time a patient pays a bill

Finance
October 24, 2020

A practicing anesthesiologist for the past 14 years, when COVID hit, and the ORs came to an abrupt halt, I needed to occupy my mind. An opportunity to learn about the business behind running a practice came to me via a good friend who is a founding member of an award-winning Fintech on a mission to make a change in the credit card processing industry. I was stunned to learn …

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Doctors in tech cities are losing the rat race

Finance
October 17, 2020

Populous cities are populous, well, because people want to live there. Whether the appeal comes from greater career opportunities or simply being closer to family, these places have continuously grown over the last few decades.

The growth is seemingly self-sustaining — certain industries and businesses exist because there is a population that desires these services. In return, these businesses require workers, so they attract people to the region. Add nice weather …

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