Over the last 32 years, I have been following the literature concerning money, investing, and debt. In the last few years, I started writing about the topic as well as sharing my knowledge with other physicians through one-on-one financial coaching. Through the years, I have seen many people make the same mistakes when projecting financial goals, and they make them year after year.
When all of the answers are at our …
4 money mistakes everyone makes
In 2010, a landmark study from Princeton was published “proving” that money just doesn’t buy happiness. Study participants were asked to compare their emotional well-being from yesterday to today, and it appeared that making more than $75,000 a year didn’t lead to concurrent increases in well-being. Since then, Americans have been flooded with the psychological opium of mindfulness, yoga, and leaning out, urging contentment instead with the …
Don’t pay off your student loans early
As a child, I remember watching superstar athletes like Wayne Gretzky glide so effortlessly on the ice and dreaming about how easy life would be to be blessed with innate talent. “Talent would make my life so easy,” so I thought. I had no clue how much work had to be invested to make talent look seamless. A little later in life, I remember hearing the quip coined by Thomas …
For married physicians looking into estate planning strategies, one thing to keep in mind is how to make best use of spousal benefits in reducing taxes or providing for a surviving spouse or other beneficiaries. For wealthy physicians, a spousal lifetime access trust, or SLAT, may provide a viable vehicle for avoiding estate taxes for both spouses and protecting assets from creditors while at the same time providing distributions that …
SLAT: An important estate planning strategy for physicians to lower President Biden’s estate tax
You were finally starting to understand Bitcoin when talk about alternative cryptocurrencies or “altcoins” started springing up everywhere. Elon Musk is tweeting about Dogecoin. Mark Cuban is talking about Ethereum. The Motley Fool is posting about Chainlink.
What are altcoins, and should you be investing in them?
I cannot speak to whether investing in altcoins is appropriate for you. Altcoins are a highly volatile and risky asset class that offers the potential …
Alternative cryptocurrencies: 5 tips for physicians
I recently unearthed all my pay stubs from residency, including the first one — all $89.14 of it.
When I received that check, I had just moved across the country after a grueling internship in Philadelphia, which left me physically and emotionally exhausted.
I was staying in a motel, which I paid for with a credit card because I used my last paycheck from internship to pay for moving across the country. …
How medical training teaches doctors to be financially unhealthy
In 2009, I came across the white paper written by Satoshi Nakamoto describing a digital currency based on a peer-to-peer network, completely independent of central banks, autonomous, decentralized, digital, and would give access to finance and banking to the masses.
This “magical internet money,” as it was described at the time, would come to be known as Bitcoin.
The reason that this paper was so revolutionary was that it was prescient of …
Should physicians invest in cryptocurrency?
My son is a fourth-year medical student, and we have had some great discussions about credit cards recently, including their benefits. I believe this information would be helpful for all medical students to consider.
As a student my son once preferred to use a debit card or cash to keep his expenses controlled. This financially conservative approach is what he was taught during his young adult days in our home. Avoidance …
4 reasons you need a credit card in medical school
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.” …
How doctors think about financial independence is dead wrong
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 …
5 financial truths every resident needs to know
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 …
Doctors beware: There’s a $400,000 target on your back
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 …
5 tips to become a millionaire
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 …
The price I paid to be in medicine
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. …
Why residents should invest in a 403(b) and a Roth IRA
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. …
8 estate planning mistakes for physicians to avoid
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 …
12 tax deductions physicians overlook
At any given moment, about half of the physicians in the U.S. aren’t millionaires. While certainly, this is true for most Americans in general, doctors make much more than most Americans. In fact, compared to the average income in the United States of $87,864, physicians make 3 to 4 times more income than the average. Specifically, in 2020, Read more…
Why doctors are such bad investors
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 …
Cost segregation: an underutilized strategy for physicians who own real estate
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 …
Physicians can practice medicine and build wealth through passive real estate investing
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 …
Debunking the myth of the doctor car
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